A depository is a holding entity, that holds all tradable instruments like shares, bonds etc in an electronic format. Regulated by SEBI, there are 2 Central Depositories in India, namely, Central Depository Services India Limited (CDSL) and National Securities Depository Limited (NSDL). Any company opting for an IPO with a size greater than Rs. 10 cr. needs to offer the shares in a dematerialized format, which after being allotted, are held in the depository.