What is the difference between depository and custodian?

Custodian refers to the person in charge of the property, while Depository refers to the location where the funds are held. So your shares or holdings will be held by the custodian, but they will be legally held in a Depository’s safe-keeping account.

What is the role of a custodian?

The custodian is often referred to as the gatekeeper of assets whose function is to track monies and assets moving into and out of the account; and they are entrusted to render regular financial valuation of such assets held in custody.

What is custodian demat account?

Definition of Custodian

A bank or company that holds the mutual funds’ assets in order to reduce risk is known as a custodian. Points to remember: A custodian holds the securities in either physical or electronic form. Though they hold securities and other assets, they play no role in portfolio management.

What is the difference between depository and bank?

The only difference is that a bank holds cash or funds on your behalf whereas the depository holds shares and other securities on your behalf. … For example, the bank facilitates safekeeping of your cash whereas the depository facilitates safekeeping of your shares and other securities.

What are custodial and depository services?

Section 766E(1) of the Corporations Act relevantly defines a custodial or depository service as one in which a person under an arrangement with a client, or with another person with whom the client has an arrangement, holds a financial product, or a beneficial interest in a financial product, on trust for, or on behalf …

What is the legal definition of a custodian?

A custodian is a person having charge of something. Some common uses of the term “custodian” in a legal sense include: … The custodian manages the property until the child reaches the age specified by state law – 21, in most states.

What is the difference between custodian and sub custodian?

Custodian banks are often referred to as global custodians if they safe keep assets for their clients in multiple jurisdictions around the world, using their own local branches or other local custodian banks (“sub-custodian” or “agent banks”) with which they contract to be in their “global network” in each market to …

What’s a depository name?

• Depository Name = Your Bank Name. • Branch. = Your Bank Branch Location. • City. = The City your Bank is located in.

Who is custodian in stock market?

Custodians are clearing members but not trading members. They settle trades on behalf of their clients that are executed through other trading members. A trading member may assign a particular trade to a custodian for settlement.

Is a custodian a janitor?

A janitor (American English, Scottish English), also known as a custodian, porter, cleanser, cleaner or caretaker is a person who cleans and maintains buildings.

What is depository in mutual fund?

Depositories are institutions which hold your securities(Shares, bonds, debentures, Mutual Fund Units) in electronic form which is also known as dematerialization of shares or DEMAT account. So, Depositories are mainly responsible and accountable for safe-keeping of your securities and keep a record of all your trades.

What is the difference between broker and custodian?

Custodians are generally large financial institutions that hold their customers’ securities. Broker-dealers range in size and can buy, sell, or hold securities for their clients.

Who are the custodians in India?

In India, the leading custodians are Stock Holding Corp. of India, HDFC Bank Ltd., ICICI Bank Ltd., etc. Visit the Financial Terms section for more.

What are four types of depository institutions?

Types of Depository Institutions: Savings Institutions, Commercial Banks, Bank and Financial Holding Companies.

Which of the following are depository?

There are two depositories which are functional in India – National Securities Depository Ltd (NSDL) and Central Securities Depository Ltd (CDSL).

What is the synonym of custodian?

Custodian Synonyms – WordHippo Thesaurus.

What is another word for custodian?

What are some examples of depository institutions?

In the US, depository institutions include:
  • Commercial banks.
  • Thrifts.
  • Credit unions.
  • Limited purpose banking institutions, such as trust companies, credit card banks and industrial loan banks.

What do you understand of depository institutions?

A financial institution that obtains its funds mainly through deposits from the public. This includes commercial banks, savings and loan associations, savings banks and credit unions.