Save Rs 588 on a 2-Year Ad-Free CAclubindia Pro Membership. Subscribe Now!

depository participant

Save Share

Join Us Follow Us Add as Source

This query is : Resolved

Report Follow Query Ask a Query

Nikhil

Nikhil (Querist)
Follow

20 October 2009 what is the difference between depository participant and stock broker? can both be the same person?

Pankaj K Gupta

Pankaj K Gupta (Expert)
Follow

21 October 2009 Depository Participant is just like a Banker holding your shares and executing instructions, accepting share deposits in Electronic form for a fee. He only provides you an intermediate plateform to interact with actual electronic holding i.e. NSDL / CDSL. Stock broker is the person through whom you trade on Stock Exchange, again for a fee. Both are subject to regulatory clearences from their respective agencies i.e. SEBI and stock exchanges.
It is very much possible that a Stock Broker also be a Depository paarticipant, but practically, it would be two differrent corporate entities, may be belonging to same group. Online Trading Plateforms are an exception to this normal rule.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now