0 Anonymous Asked: May 20, 2021In: Finance What is a depository system? 0 What is a depository system? Share Facebook 1 Answer Voted Oldest Recent devangthakkar 0 Questions 89 Answers 0 Best Answers 205 Points View Profile devangthakkar Added an answer on May 20, 2021 at 11:18 am The depository system dematerializes the shares. At the request of the shareholder, the securities of a shareholder are kept in electronic format. The emergence of Information Technology has leveraged many innovative things in the stock market. After the scams in the 1990s government became alert and took punitive measures to avoid such scams. Dematerialization came into being after all this. Dematerialization is a ladder where the shares are handed to the depository. This will be used during the time of sale. And when the shares are transferred. Now let’s look at the functioning of the depository system. On the behalf of a shareholder, this system will maintain the accounts of the shareholder. It will also take the dividends, bonus shares, etc. 0 Reply Share Share Share on Facebook Share on Twitter Share on LinkedIn Share on WhatsApp Leave an answerCancel replyYou must login or register to add a new answer.