Raul's company wants to be able to deposit as much cash as possible in order to get higher interest rates. To do this, the cash must be placed in a central depository.
There are main depository institutions: Commercial banks. Depository Institution. Credit unions. Thrifts.
In India there are two Depositories: National Securities Depositories Ltd (NSDL) and Central Securities Depositories Ltd (CSDL). Both custodians hold financial assets such as stocks and bonds in electronic form, facilitating their trading on an exchange.
A Central Securities Depository (CSD) is a specialized financial institution that holds securities, such as stocks, in certified or non-certified (electronic) form, and is owned through book entries rather than physical certificate transfers. Rights can be easily transferred.
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