What Is Depository  in Stock Market
                     What Is Depository System And Its 
Functions In Indian Stock Market ?
   Table of Content
● What is a Depository?
● Features of depository
● Depositories in India
● Differences between NSDL and 
CDSL
● What is Depository System?
● Role of depository participants in 
the depository system
● What is a Global Depository 
Receipt?
● What is an Indian Depository 
Receipt?
● Conclusion
       Introduction
Capital market is a place where IPO are 
listed  and the buying and selling shares of 
the company  take place. capital market  
divided into 2 types : primary and 
secondary market.
Primary Market  is the place where IPO of 
the get listed.
Secondary Market:It is place where stocks 
are being issued for the first time.  And it is 
the place where listed stocks are buy and 
sell.
What is The depository is the Apek Organisation in 
Depository? the stock market and a unit of the 
Depository system. The depository is similar 
to a bank where the public deposit and 
withdraw their money. In the same manner, 
a depository is a place where an investor or 
trader deposits and withdrawal their shares 
in a depository.
Depositories in India
In India, there are mainly two 
Depositories which are Central 
Depository Services Limited(CDSL) and 
National Securities Depository 
Limited(NSDL).
Know in Detail the two Depositories and 
the difference between NSDL and CDSL
 Features of Depository ● A Depository system is an institution that 
holds securities.
● In the stock market, depository 
participants are the medium through which 
Depositories interact with the Investors.
● Depository Participants are required SEBI's 
certificate to offer their services.
● Depositories also help DPs to control the 
electronic transfer of securities and 
settlement of transactions.
● Depositories issue receipts of bonus shares 
in an electronic form.
● A Depository in the stock market offers a 
nomination facility in the Demat account.
● Depositories can hypothecate 
dematerialized securities against bank 
loans.
What is Depository Stock market where the buying and selling of shares 
are done. whereas all the shares of registered 
System? companies are held in the dematerialized(electronic) 
form in the depositories. A depository system is the 
process of allotment and transfer of securities in 
electronic form.
In the depository system, the depository is the apex 
body which can be compared to putting money in 
the bank and facilitating the transfer of ownership 
with the help of simple account transfers. It is a 
paper-free method of transfer of shares that does 
away with all the hassles and risks associated with 
the transfer of certificates.
You also need to know 
what is depository participant and its role 
Depository System
What is an Indian 
Indian depository receipt is the Indian 
Depository replica of the Global depository receipt. An 
Indian depository receipt is a financial 
Receipt? instrument through which foreign 
companies can get listed on the Indian 
stock exchange and Indian investors can 
take advantage of the global competitive 
companies.
You also need to know 
what is global depository receipt
        Conclusion In the past, shares were bought and sold in 
physical form. There were operational 
challenges such as loss and theft of share 
certificates, therefore to overcome such issues, 
shares were stored in the dematerialized form 
to ensure convenience. The capital market and 
the depositories are regulated by SEBI.
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