Depository vs Depository Participant

Depository is where your holdings are stored and DPs are members of these depositories usually brokers
We have 2 depositories in India CDSL and NSDL
Depository is where financial securities are held in dematerialised form.
A Depository Participant (DP) is the intermediary between the depository and the investors.
There are two depositories in India:

  • National Securities Depository Ltd (NSDL)
  • Central Securities Depository Ltd (CDSL).
Both of them operate under strict SEBI (Securities Exchange Board of India) regulations.
Like in a bank we deposit our money, in the depository we store our holdings.
Depository participants (DPs) are the brokers and they request depository to withdraw the said shares that are sold by the client. In India, we have two Depositories - CDSL and NSDL.

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