WORKSHEET-12 BUSINESS STUDIES PART 2(CLASS 12)

Just like a bank keeps money in safe custody  for customers, a depository is also is like a bank and keeps securities in electronic form on behalf of the investor. In the depository a securities account can be opened and all shares can be deposited, they can be withdrawn/sold  at any time and instruction to deliver or receive shares on behalf of the investor can be given. It is a technology driven electronic storage system. There is no paper work but all securities are entered in a book entry mode.  In India there are two depositories National Securities Depositories Limited (NSDL)is the first and largest depository presently operational in India.The Central Depository Services (CSDL) is the second depository to commence operations and was promoted by the Bombay Stock Exchange and the Bank of India.