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NISM Certifications · NISM-Series-VI: Depository Operations · Introduction to the Indian Capital Market

Ms. Neha Gupta asks who the two depositories operating in India are and how she can access them. Which answer is correct?

India's two depositories are NSDL and CDSL. An investor accesses them through a depository participant, such as a bank or broker, by opening a demat account. Investors do not deal directly with the depository, and the other named entities are not depositories.

  1. ANSDL and CDSL; she accesses them through a depository participant by opening a demat accountCorrect
  2. BNSDL and NSE; she deals with them directly without any intermediary
  3. CCDSL and BSE Clearing; she must apply to SEBI for an account
  4. DNSDL and RBI; she opens an account at the RBI office

Explanation

India has two depositories, NSDL and CDSL. Investors cannot deal with a depository directly; they open a demat account with a depository participant such as a bank or broker registered with SEBI. The other pairings name entities that are not depositories.

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