Depository Participant SEBI Registration

Package Inclusion :

  • Advisory on Application filling 
  • Business Case Analysis
  • SOP & Software plan

Depository Participant SEBI Registration

What is Depository Participant?

A depository is a form of institution or organization which holds securities of investors in the form of shares, debentures, bonds, government securities, mutual fund units etc. in electronic form at their request through a registered depository participant. It also provides services in relation to transactions in securities.

The similarity between bank and depository as explained below

It holds funds in an account It holds securities in an account
On the instruction of account holder, it transfers the funds between their accounts On the instruction of account holder, it transfers securities between their accounts.
It facilitates transfer without having to handle money It facilitates transfer of ownership without having to handle securities.


It works as a link between the listed companies which issue shares and their shareholders. Listed Companies issues their shares through agents associated with it called depository participants or DPs. A DP can be a bank, financial institution, a broker, or any entity eligible as per SEBI norms and who is responsible for the final transfer of shares from the depository to investors. The investor, at the end of a transaction, receives a confirmation from the depository.



A depository eliminates the risk of holding physical securities. After the depository system came, such risks as of damage, loss or theft have been greatly reduced since the shares are held in and transferred in an electronic manner. They also reduce the paperwork involved in trading and fasten the transfer of shares.



A DP is an agent of the depository. They are the intermediaries between the depository and the investors.The DP may be a financial institution, scheduled commercial banks, foreign banks operating in India with the approval of RBI, clearing corporations/clearing houses, stock-brokers etc.

Depositories and Depository participant both are regulated under the purview of SEBI on the basis guidelines framed by them. DP can be operational only after the registration with SEBI post getting recommended by the NSDL and CDSL.

Procedure for becoming a Depository Participant is explained below:

1. a public financial institution as defined
2. With the approval of RBI, only a foreign bank operating in India
3. a clearing corporation of a stock exchange
4. State Financial Corporation
5. A stockbroker who has been granted a certificate of registration by the board
6. Such others as prescribed in the regulation

As depository system enhances the liquidity of securities in the market, they have reduced the scope of theft, fraud, and damages; therefore, investor is more interested in investing through this mode. So, applicant who is seeking or interested in starting their business as DP, Enterslice can help them in getting registered with SEBI and preparing all other documents as required The interested one can mail their query on our mail-id Detailed information is also provided on our website




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