What is a depository?

A depository is an organization where securities are held in electronic form through the medium of a depository participant.

A depository participant can be a bank or its branch or an authorised​ share broker.

Actually, depository is a central computer where securities are held in electronic​ form. Previously share certificates where issued as an entitlement to shares, but share certificates were risky owing to duplication, forgery, damage etc.