The introduction of Depository system in India as a part of capital market reforms has paved the way for instituting infrastructure for eliminating the problems and risks involved in physical trading of securities which includes shares, debentures, mutual funds, derivatives, F&O and commodities. Depository system in the process of converting physical certificates of an investor to an equivalent number of securities in electronic form with scrip less trading and quick settlement cycles which is known as dematerialization of securities. In this system transfer and ownership of securities take place by means of electronic book entries. The paper entitled “Are Both the Depositories of India Working at Par…? A Critical Analysis of NSDL and CDSL” focuses on performance of both the depositories i.e.  CDSL and NSDL of India. This study is purely based on secondary data and the period of the study is April 2010-11 to March 2014-15 i.e. five consecutive financial years.