Main
function of Depository Services is the holding securities either in
certificated or uncertificated(dematerialized) form. In the depository system,
securities are held in depository accounts, which are similar to holding funds
in bank accounts. Transfer of ownership of securities is done through simple
account transfers.
Types of
Depository Services:
- 2 Types of Depository Services.
1-
NSDL (National Securities Depository
Limited)
2-
CDSL (Central Depository Services
Limited)
NSDL
(National Securities Depository Limited): -
This is the first central securities depository in
India based in Mumbai. It is promoted by institutions of national stature
responsible for the economic development of India.
NSDL is
promoted by NSE (National Stock Exchange), IDBI (Industrial Development Bank of
India Limited), UTI (Unit Trust of India), and some of prominent banks in the
country have taken a stake in NSDL.
SBI, HDFC
Bank, Axis Bank, OBC, Dena Bank, Canara Bank, Union Bank of India etc.
CDSL (Central
Depository Services Limited) :
-This is the second Indian central securities depository
based in Mumbai.
CDSL is
promoted by Bombay Stock Exchange (BSE), State Bank of India(SBI), Bank of India, Bank
of Baroda, HDFC Bank, Standard Chartered Bank, Union Bank of India.
For more
articles and
Technical Analysis
click here.