What do you mean by depository system?
Asked by Mohd Waris
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2 Answers
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Depository system is a system wherein the securities of investors are held in the electronic form. with the depository at the request of the investors and transfer of securities takes place by means. of book entries on the ledger of the depository. A depository is a place to deposit, or place, assets such as cash or securities. Depository institutions can include banks, credit unions, and savings and loans institutions. Depository Participants (DPs) play a crucial role in facilitating the seamless and efficient trading and settlement of securities.
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A depository can be compared to a bank. A depository holds securities of investors in electronic form. Besides holding securities, a depository also provides services related to transactions in securities. A depository interfaces with its investors through its agents called Depository Participants (DPs).
A depository is a facility such as a building, office or warehouse where something is deposited for storage or safeguarding. It can refer to an organization, bank or an institution that holds and assists in the trading of securities.
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