In India , a Depository Participant DP is described as an Agent law of the depository. They are the intermediaries between the depository and the investors. The relationship between the DPs and the depository is governed by an agreement made between the two under the Depositories Act.

In a strictly legal sense, a DP is an entity who is registered as such with SEBI under the sub section 1A of Section 12 of the SEBI Act. As per the provisions of this Act, a DP can offer depository-related services only after obtaining a certificate of registration from SEBI. As of , there were DPs of NSDL and DPs of CDSL registered with SEBI. If a stockbroker seeks to act as a DP in more than one depository, he should comply with the specified net worth criterion separately for each such depository.

No minimum net worth criterion has been prescribed for other categories of DPs; however, depositories can fix a higher net worth criterion for their DPs.

The intermediaries perform their actions in variety of securities at Depository on behalf of their clients. These intermediaries are known as Depositories Participants.

Fundamentally, There are two sorts of depositories in India. One is the National Securities Depository Limited NSDL and the other is the Central Depository Service India Limited CDSL.

Every Depository Participant DP needs to be registered under this Depository before it begins its operation or trade in the market. A demat account is opened on the same lines as that of a Bank Account.

Depository Trust Company (DTC)

Prescribed Account opening forms are available with the DP, needs to be filled in. Standard Agreements are to be signed by the Client and the DP, which details the rights and obligations of both parties. Along with the form the client requires to attach Photographs of Account holder, Attested copies of proof of residence and proof of identity needs to be submitted along with the account opening form. From Wikipedia, the free encyclopedia.

Securities and Exchange Board of India. Retrieved 16 February Retrieved from " https: Central Securities Depositories of India.

Depository Participants | Depository Participants in India | Financial Gyaan

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