Banking · Depository Services
The bank offers Depository Services to Mr. Sharma. What is the fundamental difference between the function of the Depository (such as NSDL or CDSL) and the bank acting as a Depository Participant (DP)?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1The Depository is regulated exclusively by the RBI, while the DP is regulated exclusively by SEBI.
- 2The Depository is the central custodian of the securities in electronic form, while the DP acts as an intermediary providing services directly to individual clients.✓
- 3The Depository holds the physical certificates, while the DP maintains the electronic record of the Demat account.
- 4The Depository guarantees the returns on the securities, while the DP actively manages the client's investment portfolio.
Correct answer
The Depository is the central custodian of the securities in electronic form, while the DP acts as an intermediary providing services directly to individual clients.
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