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DIFFERENCE BETWEEN DEPOSITORY AND CUSTODIAN

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Depositor

Function: It is responsible for “safe keeping” of securities but also transfers beneficial ownership to the real owner.

Act: There is a separate Act i. e. Depositories Act, 1996, apart from SEBI (Depositories and Participant) Reg., 1996

Custodian

Function: It is responsible for “safe keeping” of securities but does not transfer beneficial ownership to the real owner.

Act: There is no separate Act and it is regulated by SEBI (Custodian of Securities) Reg., 1996

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