Question
Depository and Depository Participant.

Answer

PointsDepositoryDepository Participant
1. MeaningA 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. TypesThere 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. RegisteredDepositories 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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