Joining NSDL as Depository Participant

• Public Financial Institution
• Banks including Foreign Banks
• State Financial Corporation
• An Institution engaged in providing financial services promoted by above mentioned jointly and severally.
• Custodian of Securities
• Clearing Corporation or Clearing House of a Stock Exchange
• Stock Broker
• Non Banking Financial Company
• Registrar & Transfer Agents

• Te Depositories Act, 1996, SEBI (Depositories & Participants) Regulations, 2018 specify the entities, which are eligible to become a DP.
• The intending DP should forward the prescribed registration form i.e. Form F duly completed to NSDL. Each page of the Form-F should be stamped and initialed by the signatory, authorised as per the board resolution. The Form-F should be accompanied along with the following annexures:

1. List of directors & last 3 years shareholding pattern of the intending DP. (details of the holding above 1 % to be given).

2. Brief profile of the intending DP detailing its history and activities along with detailed biodata of directors.

3. List of the entities in which any director or promoter of the intending DP is also a promoter director/partner/proprietor.

4. Share holding pattern and list of directors of all group companies / sister concerns / associates / subsidiaries / holding company and entities and the activities carried out by them.

5. Duly notarised copy of Memorandum & Articles of Association highlighting the object clause which categorically permits the applicant company to undertake Depository Participant activities.

6. A net worth certificate computed as per NSDL's prescribed format and should be submitted on the letterhead of the applicant's Statutory Auditors. The minimum Net worth required by a stock broker to become a DP is Rs 3 Crores (INR) with effect from February 23, 2023 and will be Rs 5 crores (INR) with effect from February 23, 2024.

7. Certified true copies of last 3 years Annual Reports. The last year's balance sheet and P/L statement should be authenticated by the applicant's Statutory Auditors.

8. An organisation structure giving details of personnel to be involved in DP related functions. A compliance officer for DP activities should be designated in the organisation structure.

9. Experience & background (previous experience and the area of working) of key personnel who will handle the DP functions.

10. Certified true copies of the board resolution for joining NSDL as DP & also containing the list of authorised signatories.

11. In case of clearing members, a conduct certificate from each stock exchange should be submitted in original.

12. Demand draft for 15,000 (INR) and 30,000 (INR) (with Service Tax as applicable) favouring Central Depository Services (India) Limited towards SEBI initial application fees and NSDL application processing charges.

• NSDL will scrutinise the application and will call for further documentation / information, if required. The applicant should furnish the documentation / information to NSDL within 7 days, if requested for by NSDL.
• NSDL has chosen VSAT / Leased line/ Ethernet/ Router technology for providing connectivity between the Central Depository Accounting System (CDAS) and DPs.
• The applicant should procure the computer hardware as per the configuration specified by NSDL and establish connectivity with NSDL. The hardware should be used exclusively for NSDL operations only. The hardware should be installed at a secure place in the DP's office.
• DP should have atleast 2 trained staff of which one should be essentially NISM certified or must have attended DP 5 days training conducted by NSDL.
• On receipt of confirmation of installation of hardware and connectivity, the completed application form will be forwarded by NSDL to SEBI for approval
• On receipt of the in principle approval from SEBI, the applicant will be advised by NSDL to forward the payment towards SEBI registration and annual fees and the interest free deposit.
• NSDL will then forward the payment to SEBI after which SEBI will grant the Certificate of Registration to the intending DP. NSDL will then enter into an agreement with the applicant on receipt of payment of various charges which will be intimated separately to the DP by NSDL.
• The DP should forward the master creation form duly completed to NSDL.
• The DP should specify the names of persons at its office who shall interact with NSDL for systems and operations related matters.
• NSDL will generate a unique DP-ID number for creating the DP account. This number is unique for each DP.
• The Certificate of registration granted by SEBI shall be valid unless it is suspended or cancelled by the Board.
• The DP to keep SEBI registration in force, shall pay the SEBI registration fees of Rs. 2,00,000/- (plus 18% GST as applicable) for every 5 years from the sixth year of the date of grant of certificate of registration along with the required documents and NSDL processing fees of Rs.20,000/- (plus 18% GST as applicable). The fees and documents should be submitted to NSDL three months prior to the expiry of the block for which the SEBI registration fees has been paid. (Refer the procedure to keep the SEBI registration in force for the documents to be submitted to NSDL)