(Depository) It is a kind of facility, where we can store our assets, money, etc. and it will provide security to our assets.
So, in simple term it is a kind of facility such as building, warehouse, store house where something deposits for storage purpose. It can refer to bank, organization or an institution that holds and help in the trading of securities.
Generally we are depositing our assets in term of stocks or bonds.
In order to promote dematerialisation of securities, NSE joined hands with leading financial institutions to establish the National Securities Depository Ltd. (NSDL),
- The first depository in the country with the objective of enhancing the efficiency in settlement systems as also to reduce the menace of fake/forged and stolen securities.
- The second depository in the country, CDSL promoted by the BSE and a few commercial banks, was granted certificate of commencement of business in February 1999.
(Stock Exchanges): It is a market in which securities are bought and sold by brokers and traders.
Securities means, it can be stock, bonds, derivatives, option, currencies, mutual fund or commodity.
Four exchanges are available in India (NSE, BSE, MCX and NCDEX).
NSE (National Stock Exchange ) www.nseindia.com
BSE (Bombay Stock Exchanges) www.bseindia.com
MCX (Multiple Commodity Exchange) www.mcxindia.com
NCDEX (National Commodity and Derivative Exchange) www.ncdex.com
In NSE and BSE, trading is happening for equity market.
In MCX and NCDEX, trading is happening for commodity market.