What is Depository and Depository Participant Means and What are there role in Indian Stock Market

What is Depository

as you all know many indians when they buy properties they put there properties document in bank locker because they believe that is safe place. Likewise the property paper the ownership proof of the buyer the owner ship proof of the shareholder is share certificate which is know in the 'Dematerialised Form or DMAT or Electronic form' where the role of bank locker is played by the depository.

in India There are only two depository in india which are :

1-CDSL (Central Depository Services Limited)

2- NSDL (National Security Depository Limited)

What is 'CDSL'

Central Depository Services Limited (“CDSL”) was found in 1999 to fulfil one goal: Convenient, Dependable and secured depository services. Over two decades later, everything we have done – the values we have built on, dematerialisation of various asset classes, e-services – have all been in support of that singular goal, at an affordable cost.

We are a Market Infrastructure Institution (MII) and a crucial part of the Capital market structure, providing services to all Market participants - Exchanges, Clearing Corporations, Depository Participants (DPs), Issuers and Investors.

A Depository is a facilitator for holding of securities in the dematerialised form and an enabler for securities transactions

Services is provided by CDSL 

• Easi

Electronic access to securities information (“easi”), an internet based facility, allows BOs to monitor their CDSL Demat account at a place and time of their choosing. moreover provides details of corporate announcements for ISINs held in their account as well as 25 additional ISINs

• Easiest

 Electronic access to securities information & execution of secure transactions (“easiest”), an internet based facility, allows BOs to submit debit instructions through the internet, thus obviating the need of visiting their DP offices to submit instruction slips.

• SMART

SMS alert facility SMART(SMS Alerts Related to Transactions) enables BOs registered for this facility to receive SMS alerts in case of any debits or credits related to corporate actions or any change in demographic details in their accounts

• e-Voting

Electronic Voting (“e-Voting”) is an internet based voting system through which the shareholder vote as per the resolution of the company. after login form their user id and password.

• M-Voting

M-Voting is a mobile application for e-Voting. The mobile app can be downloaded by shareholders on their android and iOS based mobile devices.

• Myeasi Mobile App

Myeasi Mobile App for BOs registered for easi or easiest. Myeasi Mobile App is designed with adaptive technology such that its fits in all Smartphones/tab screen size. Investors can log-in to the App using their easi/easiest log-in credentials. CDSL’s Myeasi app can be downloaded by Android and iOS based mobile devices.

• e-Locker

e-Locker is an online document storage facility to store important documents in electronic form at one central secure location. This facility is available for easi/easiest users.

CDSL Statistics :

What is NSDL

NSDL, probably the biggest Depository in the World, set up in August 1996 has set up a cutting edge framework that handles the vast majority of the protections held and settled in dematerialized structure in the Indian capital market. Despite the fact that India had a dynamic capital market which is over extremely old, the paper-based settlement of exchanges caused generous issues like terrible conveyance and postponed move of title, and so forth. The sanctioning of Depositories Act in August 1996 made ready for foundation of NSDL. 

Utilizing imaginative and adaptable innovation frameworks, NSDL attempts to help the speculators and representatives in the capital market of the nation. NSDL targets guaranteeing the security and adequacy of Indian commercial centers by creating settlement arrangements that expansion proficiency, limit chance and decrease costs. At NSDL, we assume a focal job in creating items and administrations that will keep on supporting the developing needs of the budgetary administrations industry. In the safe framework, protections are held in vault accounts, which is pretty much like holding assets in financial balances. Move of responsibility for is done through basic record moves. This technique gets rid of the considerable number of dangers and bothers typically connected with desk work. Therefore, the expense of executing in a vault domain is extensively lower when contrasted with executing in authentications. 

NSDL gives bundle of administrations to end financial specialists, stock broker, stock trades, overseers, guarantor organizations and so on through its system of in excess of 276 Depository Participants/Business Partners. NSDL has had the option to win the trust of crores of financial specialists and different middle people, in this manner standing consistent with its slogan −Technology, Trust and Reach. We at NSDL accept that 'Each Indian ought turn into a 'Financial specialist' however a 'Reasonable Investor' in fact.

Statistics :-

NSDL at a Glance (May 31, 2020)

Client Accounts Active	1,98,59,837
Accounts having Debt instruments	10,08,707

NSDL Facts & Figures

As on May 31, 2020
Number of certificates eliminated (Approx.) (in Crore)	4,350
Number of companies in which more than 75% shares are dematted	13,012
Average number of accounts opened per day since November 1996	3,964
Presence of demat account holders in the country	99.22% of all pincodes in the country

Depository Participants

DPs	280
DP Service Centres	30,971
DP Geographical Coverage (Cities/Towns)	1,931

Companies Joined	30,425
Demat Custody Quantity (Crore securities)	2,17,512
Demat Custody Value (₹ Lakh Crore)	170.45	US$	2,254 (billion)

Demat Custody	Instruments	Value (in ₹ Crore)
Shares	32,837	1,24,26,384
Debt/Bonds	16,561	33,66,182
CP	1,548	4,96,252