Depository and types of Depository Participants in India

  1. Stock Markets Basic
    1. Invest:3 benefits of investing for your future
    2. Types of Investment Diversification asset classes
    3. Know more about the Share Market, Definition, Functions with Examples
    4. SEBI What is Securities and Exchange Board of India
    5. Stock Broker Financial Intermediaries or Market Intermediaries role in share market
    6. Depository and types of Depository Participants in India
    7. ICCL, NSE Clearing Limited and Bank’s role as Financial intermediary
    8. Angel Investors What are their roles with examples
    9. Venture Capitalist Who Are They and What Do They Do
    10. CAPEX Understanding Capital Expenditure with examples
    11. Private Equity Explained Understanding PE With Examples
    12. Initial Public Offering (IPO): What It Is and How It Works
    13. Launch IPO Why Do Companies Go Public
    14. IPO process how Initial Public Offering works in India
    15. What is IPO Key Terms Related to Initial Public Offering
    16. What is the share market?
    17. Share price understanding how does prices increase or decrease with examples
    18. Share trading: How Does It Work? with examples
    19. Types of traders in share market
    20. Market Index How Indexing Works, Types, and Examples in share market
    21. Share market indices importance and key terms
    22. Index construction methodology
    23. Share market terminology
    24. Share market terminology for beginners
    25. How to Trade Shares for Beginners
    26. Clearing and settlement process in the Indian Share market
    27. Stock selling learn What happens when you sell a stock
    28. Corporate actions in share market and impact on prices
    29. Bonus Issue of Shares Explained and How They Work
    30. Stock Split and Buyback of Shares What you need to know
    31. Monetary Policy by RBI Repo Rate, reverse repo rate, Cash reserve
    32. Inflation and IIP explained with examples
    33. Purchasing Managers Index, Budget, Corporate Earnings Announcement and Non-Financial events
    34. Stock market basics for beginners
    35. Offer for Sale and Follow-on Public Offer explained with examples
    36. Rights Issue and its relevance to shareholders explained with examples
Marketopedia / Stock Markets Basic / Depository and types of Depository Participants in India

When acquiring a property, it is important to ensure that the documentation confirming its ownership is safeguarded in order to support any claims of possession.

When you purchase a share, the only way to show ownership is by presenting your share certificate. This document acts as proof that you have the shares of a company. Prior to 1996, these certificates were in a physical format, but after that, they were converted into digital form. This process is known as dematerialization, or DEMAT for short.

The 1992 Harshad Mehta scam played a pivotal role in digitizing share certificates. Yes, you heard that right. Many movies and web series have been made on this incident which one can watch to understand what had happened then.

The DEMAT format share certificate needs to be stored digitally. This is done through a ‘DEMAT Account’. A Depository provides this service, which acts like a digital vault for your shares. It’s worth noting that your broker’s trading account and the Demat account from the Depository are linked.

If you’re looking to purchase shares of Reliance Indusrtries Ltd. shares, all that is required of you is to open a trading account and search for their pricing. Once the transaction is completed, your trading account’s job has been done; Reliance Industries shares will be instantly credited to your demat account.

When you want to sell the same shares, simply login to your trading account and submit the sell order. Your broker will credit the money to your account, having simultaneously debited the stock from your demat account.

Currently, two depositories offer DEMAT account services, namely National Securities Depository Limited (NSDL) and Central Depository Services (India) Limited. Both of them function within the framework of stringent SEBI regulations, with minimal differences between them.

You cannot just walk into the National Stock Exchange (NSE) or a Depository such as NSDL or CDSL to open a trading or DEMAT account for yourself. Instead, you must talk to a Depository Participant (DP) who will help you set up your account with the appropriate Depository. Your DP will also be held to regulations by SEBI.

Stoxbox is registered as a depository participant with Central Depository Services (India) Limited (CDSL).


    Get the App Now