Question

Aims and objectives of depositary

Answer 1

Answer:

A depository is an organization where the securities of a shareholder are held in the electronic form at the request of the shareholder through the medium of a depository participant.

A depository is like a bank for securities. If an investor wishes to avail the services offered by a depository, he/she has to open an account with the depository, through a depository participant. This is very similar to opening of an account with any of the branches of a bank so as to utilize the services of that bank. The depository can legally transfer the beneficial ownership of securities.Objectives of Depository

The main objective of a depository is to minimize the paper work involved with ownership, trading and transfer of securities.

Answer 2

Explanation:

Aims and objectives of a Demat Account

The fact that Demat accounts allow the investor to hold shares in the electronic form eliminates the risk of misplacement, damage, theft, and forgery, as was the case with physical shares. Hence, the objective of a Demat account is to make handling of shares safer than before.