What is the role of a Depository?

Depositories are institutions that hold investors' securities (likeshares, debentures, and mutual funds) in an electronic form in a Demat account.

The role of the Depository is:

1. To offer Demat accounts to investors.
2. Hold, and maintain a record of securities in Demat accounts for investors.
3. Make online trading fast & secure.
4. Settlement of trades carried out on the exchange.
5. To reduce the paperwork involved in the transfer of financial securities.