Depository Services

Main function of Depository Services is the holding securities either in certificated or uncertificated (dematerialized) form. In the depository system, securities are held in depository accounts, which are similar to holding funds in bank accounts. Transfer of ownership of securities is done through simple account transfers.

Types of Depository Services:

1. NSDL (National Securities Depository Limited)

2. CDSL (Central Depository Services Limited)

NSDL (National Securities Depository Limited): This is the first central securities depository in India based in Mumbai. It is promoted by institutions of national stature responsible for the economic development of India.

NSDL is promoted by NSE (National Stock Exchange), IDBI (Industrial Development Bank of India Limited), UTI (Unit Trust of India), and some of prominent banks in the country have taken a stake in NSDL.

SBI, HDFC Bank, Axis Bank, OBC, Dena Bank, Canara Bank, Union Bank of India etc.

CDSL (Central Depository Services Limited): This is the second Indian central securities depository based in Mumbai.

CDSL is promoted by Bombay Stock Exchange (BSE), State Bank of India (SBI), Bank of India, Bank of Baroda, HDFC Bank, Standard Chartered Bank, and Union Bank of India.