ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -NSDL, one of the largest Depositories in the World, established in August 1996 has established a state-of-the-art infrastructure that handles most of the securities held and settled in dematerialized form in the Indian capital market.

Detailed explanation-2: -NSDL is the depository for NSE and CDSL is BSE’s depository. CDSL was established in 1999 and NSDL was established in 1996.

Detailed explanation-3: -In India, there are two depositories: National Securities Depositories Ltd (NSDL) and Central Securities Depositories Ltd (CDSL). Both the depositories hold your financial securities, like shares and bonds, in dematerialised form and facilitate trading in stock exchanges.

Detailed explanation-4: -The Depository Participant Identification, or DP ID, is a number assigned by the NSDL and CDSL to a Depository Participant such as a bank, financial institution, or brokerage firm. Second, a demat account number is typically made up of the customer ID and the demat account holder’s DP ID.