Depository Participant
Aspiring market intermediaries can leverage our end-to-end solutions to establish Depository Participant operations, from SEBI and depository approvals to operational setup and ongoing compliance.
Introduction & Regulatory Background
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SEBI (Depositories and Participants) Regulations, 2018 regulates the depositories and Depository Participants (DPs) in India. A DP acts as an intermediary between investors and the depository, providing demat and related services.
To function as a DP, an entity must be associated with a depository and then registered with SEBI.
DPs must register with depositories: NSDL or CDSL, serving as intermediaries providing dematerialization, transfer and custody services to investors.
Eligible entities include: banks, financial institutions, stock brokers, custodians and NBFCs meeting SEBI's capital, infrastructure and fit-and-proper criteria.
Entity Types
Banks
Scheduled commercial banks and cooperative banks with robust infrastructure and systems to provide depository services to their customers.
Financial Institutions
Registered financial institutions meeting SEBI's eligibility criteria, including infrastructure and capital adequacy norms for depository operations.
Stock Brokers
SEBI-registered stock brokers with minimum net worth of ₹5 crores, adequate infrastructure and trained staff to operate as depository participants.
Custodians
SEBI-registered custodians providing safekeeping, custody services, meeting infrastructure and compliance requirements for DP operations.
Key Functions of DP
Opening and maintaining demat accounts for investors
Dematerialization and rematerialization of securities
Transfer of securities between demat accounts
Pledging and unpledging of shares for loan purposes
Providing periodic account statements to investors
Requirements of DP
Applicant must qualify for depository admission through NSDL or CDSL before applying for SEBI registration.
Applicant must appoint compliance officer with adequate knowledge, certification, experience and qualifications.
Applicant must appoint principal officer responsible for daily operations and regulatory compliance.
Applicant must maintain adequate infrastructure, systems, safeguards and trained staff for DP activities.
Applicant must qualify as fit and proper person under SEBI (Intermediaries) Regulations, 2008 requirements.
Stock broker applicants must maintain a minimum net worth of ₹5 crores to qualify for registration.
How SecMark Assists
We provide end-to-end consulting for DP application, ensuring a smooth path for SEBI registration.
Assistance in applying to depository (NSDL/CDSL) and SEBI for registration with accurate documentation.
Advising on matters related to infrastructure requirements, qualification and experience required for DP operations.
Responding to queries from depository and SEBI teams promptly and comprehensively.
Assistance in setting up operations, systems and back-office infrastructure for DP services.
Designing policies, procedures and operational processes compliant with SEBI and depository regulations.
Providing DP Back Office Software, that more than 150 DPs currently use.
Providing a DP surveillance software that meets the requirements of SEBI, Depositories and FIU.
Providing client screening software for customer due diligence
