हिंदी

Depository Services

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Estimated time: 6 minutes
CBSE: Class 12

Meaning

  • A depository is a technology-driven storage system which keeps securities in an electronic form on behalf of the investor.
  • In a depository, shares can be deposited, withdrawn or sold at any time on instructions given by the investor.
  • It helps to avoid all the paperwork related to share certificates, transfer forms etc.
  • This system has helped in increasing the speed and efficiency of trading and settlement of securities.
CBSE: Class 12

Constituents of the Depository System

CBSE: Class 12

Key Points: Depository Services

  • Technology-driven storage system for securities in electronic form.
  • Works on behalf of the investor.
  • Allows deposit, withdrawal and sale of shares any time as per investor’s instructions.
  • Avoids paperwork related to share certificates and transfer forms.
  • Increases speed and efficiency of trading and settlement of securities.
  • Constituents of the Depository System: Depository, depository participants, demat account, issuing company and investor.
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