Custodian

DEFINITION of 'Custodian'
A financial institution that holds customers' securities for safekeeping so as to minimize the
risk of their theft or loss. A custodian holds securities and other assets in electronic or
physical form. Since they are responsible for the safety of assets and securities that may be
worth hundreds of millions or even billions of dollars, custodians generally tend to be large
and reputable firms.

Short Notes on Depository Services in the Indian Stock Market

by Saritha Pujari Stock Exchange
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The depository services originated recently in the Indian Stock market. Now-a- days on-line (scrip less or
paperless) trading in the shares of any company is compulsory. To make it a success some new trading
mechanism is needed. Depository service is the name of that mechanism which makes possible the online trading in shares.
Through this system transfer of ownership in shares take place by means of book entry without the
physical delivery of shares. When a person wants to deal in shares of any company he/she has to open
an account with the depository through a depository participant. Hence, there are four players who
participate in this system. These are the following:
stock market
Image Courtesy : upload.wikimedia.org/wikipedia/commons/c/cc/SEBI_Bhavan.jpg
(i) The Depository
(ii) The Depository Participant
(iii) The Investor
(iv) The Issuing Company
(1) The Depository:
A depository is an institution which holds the shares of an investor in electronic form. It facilitates
transactions in securities simply by means of book entry. At present, there are two depository institutions
in India:
National Securities Depository Limited (NSDL)

Central Depository Services Limited (CDSL)

(2) The Depository Participant:
A Depository Participant (DP) is an agent of the depository. He functions as a mediator between the
issuing company and the investors through the depository. He opens the accounts and maintains the
securities account balance of the investors and conveys them the status of their holding from time to time.
As per SEBI guidelines, banks, stock brokers, etc. can become depository participants.
(3) The Investor:
He is a person who wants to deal in shares and whose name is recorded with a depository. The investor
is the real owner of the shares who has lodged them with the depository through book entry till the day he
sells them.
(4) The Issuing Company:
The issuing company is that organisation which issues the securities. The issuing company sends a list of
the shareholders to the depositories.

DEFINITION of 'Investment Banker'

An individual who works in a financial institution that is in the business primarily of raising
capital for companies, governments and other entities, or who works in a large bank's
division that is involved with these activities. Investment bankers may also provide other
services to their clients such as mergers and acquisition advice, or advice on specific
transactions, such as a spin-off or reorganization. In smaller organizations that do not have
a specific investment banking arm, corporate finance staff may fulfill the duties of investment
bankers.