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Depasitoary

uma CA Final (-) (266 Points)

29 November 2011

plz xplain about depasitory in share market??

how to calculate brokerage amount ??

how to calculate actual profit (cash profit) aftr brok??

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CS RAJESH C.CHOUDHARY (ASSISTANT MANAGER) (14607 Points)
Replied 29 November 2011

When u buy shares or sell the shares, the transaction goes through a specific medium. The Depository Services provider settles the trade or transactions u make in stock markets. The depository is linked with Exchange boards like NSE,BSE and few others. Like banks, even the depository service providers have a clearing house where at the end of the day all the buying n selling settlements takes place between buyers n sellers through stock brokers.

Depository is a company which holds the shares you purchase. Right now there are 2 depository companies. NSDL (National Securities Depository Ltd) & CDSL ( Central Depository Services Ltd.)

And a depository participant is an institution which acts as an agent between an investor and Depository servie provider. It can be a stock broker, a bank or any NBFC.

There are few other interesting points i would like to discuss regarding depository participants and depository services providers. If the readers here show good response, i would continue to share more knowledge on this.

Brokerage varies from broker to broker & also depends upon the amount of transaction..

U can make it easily by urself according to the applicable brokerage rate for u..

even other charges also varies..

Stamp & Other charges are most important to consider than brokerage

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uma CA Final (-) (266 Points)
Replied 30 November 2011

thankq plz explain more abt depstry...

Keval (Manager) (23 Points)
Replied 05 December 2011

Depository is an organization which holds securities [shares, debentures, mutual funds, derivatives, commodities, etc] with it. In India, there are 2 major depositories: NSDL and CDSL. Every Depository Participant(DP) needs to be registered under this Depository before it begins its operation or trade in the market. GEPL Capital is one such reputed Depository Participant providing professional depository services in India.