Question

What are depository services in E-Trading ?

Hint:

Think of a Depository as a "Bank for Shares" where securities are deposited instead of money.

Answer 1

1. Depository services involve holding securities (like stocks and bonds) in electronic or dematerialized (DEMAT) form.
2. In E-Trading, a Depository (like NSDL or CDSL in India) maintains the ownership records of these digital securities.
3. This system eliminates the need for physical share certificates and facilitates instant transfer of ownership during trade.