A Depository is like a bank wherein the deposits are securities (viz. shares,debentures, bonds, government securities, units etc.) in electronic form.
It is an entity which holds securities of investors in electronic form at the request of the investors through a registered Depository participant. It also
provides services related to transactions in securities based on instructions given by the investors to depository participant.
At present two Depositories viz. National Securities Depository Limited (NSDL) and Central Depository Services (I) Limited (CDSL) are registered with SEBI.