Functions of Depository Participants (DPs)

The entities which act as intermediaries in clearing and settlement process between investors and Depositories are called Depository Participants (DPs). A depository Participant (DP) gets registered with a depository as per SEBI regulations for offering DP services.

An investor can open a dematerialized account with a Depository Participant of his choice. When he buys securities they will get credited to his account electronically. Similarly when he sells out securities they will automatically be debited from his dematerialized account. Depositories maintain the data of security holders across all depository participants. In the clearing and settlement process when Clearing Corporation (CC) suggests the depository to debit or credit a particular De-mat account, it gives instructions to the concerned DP to do so. A depository issues instructions to DPs as per the inputs from CC and DPs act as specified by their depositories on securities pay-in/pay-out day.

For clear understanding of settlement process please read the article ‘Trade Clearing and Settlements in Stock Markets’.

List of Authorized Depository Participants and Custodians at National Securities Depository Ltd (NSDL):
1.    HDFC Bank Ltd.
2.    Stock Holding Corporation of India Ltd. (SHCIL)
3.    ICICI Bank Ltd

Please visit the following link to know about the depositories participants at Central Depository Services Ltd (CDSL)

Depository Participants at CDSL

Some Brokerage houses act as DPs as well at CDSL