What is a Depository?

A Depository Participant is an entity which is responsible for maintenance of ownership records and helps an investor to buy and sell securities in a paperless form. Depositories work as an intermediary between listed companies and shareholders. The Securities and Exchange Board of India (SEBI) is responsible for the registration, regulation and inspection of the depository.

The two depositories in India are:

•  National Securities Depository Limited (NSDL) 
•  Central Depository Services Limited (CDSL)