What is an Index? What is a Depository?
November 18th, 2008
An Index shows how a specified portfolio of share prices are moving in order
to give an indication of market trends. It is a basket of securities and the
average price movement of the basket of securities indicates the index
movement, whether upwards or downwards.
A depository is like a bank wherein the deposits are securities (viz. shares,
debentures, bonds, government securities, units etc.) in electronic form.
What is Dematerialization?
Dematerialization is the process by which physical certificates of an investor
are converted to an equivalent number of securities in electronic form and
credited to the investor’s account with his Depository Participant (DP).