What is Depository, its functions in Hindi (What is Depository in Hindi)

Depository Participant in Hindi: when it comes to investing or Share Market When it comes to investing, there are many such terms about which an investor does not know properly, but it is very important for every investor to know these terms. Depository is one of those terms.

Many investors are not aware that Depositories what is, India In How many depository Huh, depository Of what Work would have Huh Other information related to other types of Depository.

If you want to get all the information related to Depository, then definitely read this article till the end, because through today’s article, we are going to give you complete information about Depository. So let’s start this article without any delay – what is depository in hindi,

What is Depository (Introduction)

If we talk before 1996, at that time we did not have any kind of online system to keep the shares, at that time all share People used to have it in the form of certificates. So many times people’s certificates were lost or due to some other reason the certificates were damaged.

What is Depository, its functions in Hindi (What is Depository in Hindi)

Managing shares in the form of certificates was a very difficult task, to solve these problems, we needed a place where we could keep the shares safe online and then Depository was created.

Just as Bank Keeps your money in electronic form, you do not have to keep the entire cash with you, similarly Depository keeps your shares in electronic form so that you do not have to keep the certificate of each share.

What is Depository (What is Depository in Hindi)

Depository means in Hindi, store or godown or say a place where something is stored and kept.

Depository is such an institution in the stock market where investors Demat Account is opened. Shares bought by investors in Depository Participant Demat Account only, mutual funddebentures, securities etc. remain deposited.

Depository keeps the complete account of your Demat Account with itself. Apart from this, the depository investor gets from the company dividendsBonus also directly to the investor bank accounts Transfers to.

The beginning of the depository, the regulator of the stock market SEBI was done by every depository a stock exchange remains linked to. There are mainly two stock exchanges in India, NSE and BSE.

When you buy a share, the Depository does the work of transferring the shares from the seller’s account to your account, and similarly when you sell the shares, the Depository also transfers the shares to the buyer’s account by withdrawing the shares from your account. .

So many shares are traded every day, so the Depository appoints a Depository Participant (DP) to manage them all. DP one Depository has an agent or a registered stock broker.

How Many Depository in India

After reading the article till now, you must have understood what is Depository. Now let us know how many Depositories are there in India.

Mainly two depositories in India Participant Huh –

  • NSDL (National Securities Depositories Ltd.)
  • CDSL (Central Depository Services Ltd)

1 – NSDL (National Securities Depository Limited)

NSDL It is the oldest depository of India, which started on 8 November 1996. NSDL was jointly sponsored by NSE (National Stock Exchange) and many banks. This depository is for NSE.

2 – CSDL (Central Depository Service Limited)

CDSL It is the second depository of India, which started in February 1999. CDSL is sponsored by BSE (Bombay Stock Exchange) and many other banks. This depository is for BSE.

Difference between NSDL and CDSL (NSDL vs CDSL In Hindi)

Both NSDL and CDSL are Depositories, and the functions of both are similar. Although these two are different organizations. NSDL Depository NSE is for and CDSL Depository BSE Is for.

Whenever you open your Demat Account through a stock broker, the broker opens your Demat Account in one of these two depositories. This broker Decides in which depository he will open your Demat Account.

But you can find out in which depository your Demat Account is, let us know how.

How to know in which depository the Demat Account is located?

Whenever you open your Demat Account, your Email Id But a welcome mail comes from the depository.

If you have E-mail [email protected] If it comes from means that your Demat Account is open in CDSL.

And in the same way, if the mail comes towards NSDL, then it means that your Demat Account is open in NSDL.

Suppose if you did not pay attention to the E-mail and for some reason your mail got deleted, then now you have to check your ID to know the depository of your Demat Account.

If your Demat Account is in NSDL, then your ID will start with IN and the rest will have 14 numbers.

And if your Demat Account is in CDSL then your ID will have 16 digit numbers.

Work of Depository

The main functions of the depository are as follows –

  • You need a Demat Account to buy shares from the share market. Depository gives it to the investors by opening a Demat Account.
  • The depository keeps records of all the shares, mutual funds, securities of the investors.
  • The shares of all the investors are stored in the depository in electronic form.
  • The task of managing the daily transactions in the share market is done by the depository itself.
  • in the stock market tradingThe responsibility of maintaining the records of the investors rests with the depository.

Advantages of Depository

With the advent of depositories, investors will get many benefits.

  • The investor does not need to keep the shares in the form of certificates. Therefore, investors got rid of tasks like keeping share certificates.
  • The depository does the transaction of shares electronically, so that the error in paper work has ended.
  • Paperwork used to take several days to transfer shares, but with the advent of depositories, share transfers are done in a very short time.
  • The investor also got rid of problems like bad delivery, fake certificates.

Depository FAQ

Explain what is depository in share market?

Depository is an institution where the shares, mutual funds, securities etc. of the investor are deposited in electronic form. And the buying and selling of shares is done through the depository only.

What is meaning of Depository in Hindi dictionary?

Depository means store or godown in Hindi.

How many types of depositories are there in India?

There are two types of depositories in India – NSDL and CDSL.

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Last Word: What is Depository in Hindi

In this article we have given you What is Depository? Detailed information has been provided about, by reading which you must have definitely come to know about the depository. If you want to give any suggestion in the article, then you can give it by writing in the comment box.

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