Central Depository System

A Central Depository System (CDS) is an electronic platform that holds and manages investors' securities, such as stocks and bonds, in a digital form. Instead of physical certificates, ownership is recorded electronically, ensuring secure, efficient, and transparent transactions. It facilitates smooth buying, selling, and transferring of securities by electronically updating ownership records, reducing the risks of loss or theft, and speeding up settlement processes. Essentially, the CDS acts as a centralized digital ledger for securities, providing a reliable infrastructure for capital markets to operate efficiently and securely.