Who is a Depository Participant?
A depository interfaces with its investors through its agents called depository participants (DPs). If an investor wants to utilise the services offered by a depository, the investor has to open an account with a DP. This is similar to opening an account with any branch of a bank in order to utilise the bank’s services.
A Depository Participant (DP) is an agent of the depository through which it interfaces with the investor and provides depository services. Public financial institutions, scheduled commercial banks, foreign banks operating in India with the approval of the Reserve Bank of India, state financial corporations, custodians, stock-brokers, clearing corporations /clearing houses, NBFCs and Registrar to an Issue or Share Transfer Agent complying with the requirements prescribed by SEBI can be registered as DP. Banking services can be availed through a branch whereas depository services can be availed through a DP.
Related Questions
- I have purchased some shares in paper form. Can I directly give the share certificates to my Depository Participant for dematting them in my favour?
- I have purchased some shares in paper form. Can I directly give the share certificate(s) to my Depository Participant for dematting them in my favour?
- I have purchased some shares in paper form. Can I directly give the share certificate(s) to my Depository Participant for demating them in my favour?
