WHAT IS A DEPOSITORY?

A “Depository” is a provider of facility for holding and/or transacting securities in, book entry form. Physical securities can be converted in to book entry form i.e. electronic form by way of immobilization or dematerialization (so that they exist only as electronic records). Chengetedzai has chosen the dematerialization route. A depository functions somewhat similar to a commercial bank. To avail of the services offered by a depository, the investor has to open a demat account with a registered DP.

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