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Market Intelligence › Basic Terminologies
The relationship between the depository, the DP and your account
Published by The Retail Trader · JUL 29, 2026 · Market Basics
Your shares are not held by your broker. They are held electronically in a depository, and the broker is just an intermediary participant. This difference matters most when something goes wrong.
There are two depositories, and they keep the central record. A broker or bank is a depository participant, which opens your account with that depository.
So the record of your holding sits with the depository, not with the broker. That is what keeps your holdings safe if the broker defaults.
The depository directly gives you these facilities:
• View your holding statement directly from the depository, separate from the broker's app.
• SMS and email alerts on every debit, which you should never switch off.
• An option to freeze your account.
• Updating your nomination and account details directly.
Every so often, compare the holdings page of the broker's app with the depository statement. It takes two minutes, and it quickly catches the one category of problem that matters most to catch.
This article is for educational purposes only. It is not a buy or sell recommendation, not a claim of guaranteed returns, and not advice. Rules, rates and mechanics change from time to time at the exchanges, SEBI and the RBI, so verify every number yourself with your broker or an official source.