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Depository (NSDL and CDSL)
A depository holds securities in electronic form on behalf of investors. India has two, NSDL and CDSL. Brokers and banks act as depository participants, opening demat accounts that connect investors to the depository.
Why It Matters
Your shares sit with the depository, not with your broker, which protects you if the broker fails.
In India
Every month, the depositories send investors a consolidated statement showing all their holdings.
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