Depository Services

Depositories are institutions which hold financial securities such as shares, bonds, mutual fund units, equities in dematerialised form. They track and maintain the ownership records of these securities and also facilitate the trading of depository securities in electronic form. Two main depositories in India include: National Securities Depository Ltd. (NSDL) Central Depository Services Ltd. (CDSL)

Depositories are responsible for safe-keeping your securities and keeping a record of all your trades. The Depository System involves an electronic system that facilitates easy, paperless trading and faster settlement cycles.

A depository agent is also known as a Depository Participant (DP) and is responsible to coordinate between the depository and the investors. The relationship between the two is governed by an agreement made under the Depositories Act. A depository agent offers depository-related services to investors after obtaining a certificate of registration from SEBI.

Depositories may be banks, financial institutions, and other organizations. But it is not necessary for a bank to be a depository also. Any bank that allows you to trade in depository securities and keep a record of your ownership and trading can be considered as a depository bank.

Depository charges are originally levied by depositories such as the NSDL or CDSL on Depository Participants (DPs) or depository agents. These charges are then transferred to the traders by the brokers. When you trade in depository securities, you need to pay a specific amount for buying and selling shares in the market.

Investing in depositories offers benefits such as paperless trading, instant transfer and registration of securities, and ease of handling minor account operations. The Depository System helps you manage your portfolio easily. It is beneficial to everyone, from investors to companies, intermediates, and the overall capital investment market.

While the roles of a depository and a custodian are quite similar and often overlapping, these two are different from one another. A depository is a financial institution that holds securities and other financial assets safely. They offer more control, liability, and responsibility for the assets they hold. On the other hand, a custodian is an institution responsible to maintain the custody of assets and ensure their safety.

Depository institutions offer services such as safekeeping securities, facilitating trade and investment in securities, and electronic fund transfers. We at Findoc Group are members of two major stock exchanges that include the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE). We offer depository services through NSDL and also allow you to trade via automated, intelligent algorithms.

There are two main depositories that are functional in India, which include the National Securities Depository Ltd. (NSDL) and the Central Depository Services Ltd. (CDSL).

Depositories offer services such as dematerialization, which means that they convert physical financial assets and certificates into electronic form securities. This makes it easier for investors to buy and sell shares of these depository securities. They also offer rematerialisation, where they convert electronic securities into physical certificates. Depositories allow transfer and trade of securities and provide easy and quick settlement of trades in financial securities.