Question
Depository and Depository Participant.
| Points | Depository | Depository Participant |
| 1. Meaning | A depository is an entity that helps the investor to buy or sell securities online. | A depository participant is a link between companies and investors. |
| 2. Types | There are two depositories functional in India. They are NSDL and CDSL. | Various depository participants are linked to NSDL and CDSL. |
| 3. Who can be? | A Depository may be organizations, banks, or institutions. | A Depository Participant can be a bank, financial institution, a broker. |
| 4. Registered | Depositories must be registered as a company under the Companies Act and obtain a Certificate of Commencement of business from SEBI. | Depository Participants should be registered under the SEBI Act. |
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