What is the role of depositories?
Download the Tickertape App: https://ttape.in/QxY5NlWXhtb
#dimaaglaganazarurihai #dimaagyahalagao #tickertapehaina
Do you remember school mei ek library card hua karta tha, whenever you wanted to borrow or return a book, the librarian would sign the card with date & other specifications?
Well, exactly like that in the world of the stock market, Depositories like CDSL & NSDL act as librarians for every company shares(equivalent to library’s books). They have all the data on ownership records of financial securities.
And you can think of your school as the Depository Participants (DPs) also typically, called stockbrokers. Just like you must be a student of the school to avail the library services, you must be associated with a DP to avail depositories’ services.
So, once you start trading or investing, it is the depository from which the shares are credited or debited & reflected in your demat account.
If you learned something interesting, follow/subscribe to tickertape for more investing & trading videos.