A depository is like a bank where securities like shares, debentures, bonds, government securities, units etc. in electronic form.

• Hold securities in an account
• Transfers securities between accounts on the instruction of the account holder.
• Facilitates transfers of ownership without having to handle securities.
• Facilitates safekeeping of shares.

The National Securities Depository Limited (NSDL) & Central Securities Depository Limited (CDSL) are two depositories in India.

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