Eligibility

In terms of the Depositories Act, 1996 and SEBI (Depositories & Participants) Regulations,1996, only the following entities are eligible to become a 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
Threshold criteria for admission as a DP of CDSL
  • Fulfillment of eligibility criteria laid down under Regulation 19, sub regulation (a) to (d) of the SEBI (Depositories and Participants) Regulations, 1996 and the admission criteria as enumerated in CDSL Bye-Law 5.2.
    The minimum net worth requirement for a stock broker to become CDSL 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.

    As per Securities and Exchange Board of India (Depositories and Participations) (Amendment) Regulations, 2022 dated February 23rd , 2022. In the Securities and Exchange Board of India (Depositories and Participants) Regulations, 2018- In regulation 35, in clause (a), in sub-clause (viii), the first, second and third provision shall be substituted with the following, namely, -

    Provided that the stock broker shall have a networth of rupees three crores {within one year of the date of notification of the Securities and Exchange Board of India (Depositories and Participants) (Amendment) Regulations, 2022}, which shall be increased to rupees five crores {within two years of the date of notification of the Securities and Exchange Board of India (Depositories and Participants) (Amendment) Regulations, 2022}:

    Provided further that a self-clearing member fulfilling the networth requirements as provided under the Securities and Exchange Board of India (Stock Brokers) Regulations, 1992 shall also be eligible to register as a depository participant.
  • The application which is complete in all respects and satisfying the abovementioned threshold criteria shall be considered by the Membership Committee of CDSL on its merits.

Admission Procedure

  • The Depositories Act, 1996, SEBI (Depositories & Participants) Regulations, 2018 specify the entities, which are eligible to become a DP.
  • The DP should forward the documents as per the checklist and format prescribed by SEBI .
  • The intending DP should forward the prescribed registration form i.e. Form F duly completed to CDSL. 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 CDSL'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 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 CDSL 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 CDSL application processing charges.

  • CDSL will scrutinise the application and will call for further documentation / information, if required. The applicant should furnish the documentation / information to CDSL within 7 days, if requested for by CDSL.
  • CDSL 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 CDSL and establish connectivity with CDSL. The hardware should be used exclusively for CDSL 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 CDSL.
  • On receipt of confirmation of installation of hardware and connectivity, the completed application form will be forwarded by CDSL to SEBI for approval
  • On receipt of the in principle approval from SEBI, the applicant will be advised by CDSL to forward the payment towards SEBI registration and annual fees and the interest free deposit.
  • CDSL will then forward the payment to SEBI after which SEBI will grant the Certificate of Registration to the intending DP. CDSL 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 CDSL.
  • The DP should forward the master creation form duly completed to CDSL.
  • The DP should specify the names of persons at its office who shall interact with CDSL for systems and operations related matters.
  • CDSL 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 CDSL processing fees of Rs.20,000/- (plus 18% GST as applicable). The fees and documents should be submitted to CDSL 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 CDSL)

The DP to keep the SEBI Registration in force shall pay the SEBI registration fees for every 5 years from the 6th year of the date of grant of certificate of registration along with the documents as mentioned below and CDSL processing fees of Rs. 20,000/- (plus taxes as applicable). The documents and payment should be submitted to CDSL three months prior to the expiry of the block for which the SEBI registration fees has been paid.

Documents to be submitted:
Copy of SEBI Registration Certificate

FAQs for Surrender/Withdrawal

  1. Can a Depository Participants (DP) surrender/withdraw the Depository Participant (DP) registration certificate issued by SEBI :
    Yes. A DP who wishes to surrender / withdraw the SEBI DP registration will be required to submit the application for surrender / withdrawal alongwith the requisite documents to CDSL.
  2. What are the documents required to be submitted along with the application for surrender/withdrawal of SEBI Registration as a DP:
    The following documents should be submitted to CDSL for processing the application for surrender/withdrawal of SEBI Registration as a DP:
    1. Request Letter in the CDSL prescribed format. Please click on the highlighted hyperlink Request Letter format - Annexure I.pdf to access the letter format.
    2. Original SEBI Registration Certificate.
    3. Undertaking to be submitted to SEBI on the letterhead of the company in the prescribed format. Please click on the highlighted hyperlink CA Undertaking On the letterhead of CA.pdf to access the undertaking format.
    4. Undertaking to be submitted to SEBI on the letterhead of the company in the prescribed format. Please click on the highlighted hyperlink.Please click on the highlighted hyperlink SEBI Undertaking on the letterhead of company.pdf to access the undertaking format.
    5. Public Notice issued in newspapers (both in National & vernacular language).

      6. The above information / documents to be submitted to the Admission Department of CDSL at the following address:


      Central Depository Services (India) Limited

      Unit No. A-2501, A-Wing ,
      Marathon Futurex 25th Floor, Mafatlal Mill Compounds,
      N. M. Joshi Marg, Lower Parel (East),
      Mumbai – 400013

      Email Id:[email protected]

  3. I have lost my original certificate. How should I make the application for surrender?
    If the original certificate has been lost, the applicant need to submit a true copy of the FIR and an affidavit- cum undertaking that the applicant is not in possession of the original certificate of registration. The undertaking should also contain a clause that if the original certificate is found at a later date, it needs to be submitted.
  4. What is the procedure followed by the Depository post submission of the surrender / withdrawal application by the DP?
    The Depository will scrutinize the application and supporting documents and if found in order forward the same to SEBI along with the Original SEBI Registration Certificate for cancellation of the same. On receipt of SEBI confirmation, the same will be intimated to the DP via email/letter. Incase of any further / additional information required by SEBI, the same will be intimated to the DP by the Depository for doing the needful.
  5. Can a Depository Participants (DP) surrender / withdraw the SEBI registration even if the same is not in force / has expired?
    Yes. A DP can surrender/ withdraw the SEBI registration even if the same is not in force /has expired. However, the SEBI block fee for the period in which the surrender / withdrawal request is received should be paid and any other dues applicable to the Depository or SEBI should be paid.
  6. Incase the period for keeping the registration in force has ended on T day, can a Depository Participants (DP) make an application for surrender on T+1 day?
    Yes, the DP can submit application for surrender on T+1 day. However, the DP will be required to make payment for the block in which the request for surrender is made.
  7. When will the Depository Participant (DP) get refund of the Security Deposit.
    The interest free security deposits with CDSL shall be refunded to the DP on expiry of three years from the date of cancellation of the certificate of registration as a Depository Participant (DP) by SEBI or after resolving pending investor grievances, if any, to the satisfaction of the Depository, whichever is later. However, CDSL shall have the right to adjust or set off amounts or to retain security equivalent to the amount due or which may become due to CDSL, other participants and Beneficial Owners from that participant, if applicable. If the DP wishes to surrender / withdraw the SEBI DP registration within five years of initial registration as a DP then an exit fee of Rs. 12,500/- for each unexpired quarter of the registration will be charged.

Tariff Structure
For DPs

CDSL collects only 500 (INR) per month from its DPs for a CM account per exchange.
Further, a fee of 5.50 (INR) will be payable per credit transaction into CM Principal account that originates from the Clearing Corporation.

* The following tariff structure will be effective from Thursday, June 01, 2023.

Monthly Transaction bill amount Rate per Debit Transaction(in INR)
More than 3 crore 3.75
1 crore and upto 3 crore 4.00
More than 15 lakhs (INR) and upto 1 crore 4.25
More than 4 lakhs (INR) and upto 15 lakhs (INR) 4.50
More than 1 lakhs (INR) and upto 4 lakhs (INR) 5.00
Upto 1 lakh (INR) 5.50

Hardware and Software Requirements

Hardware Requirement
Intel Core i7
6 GB RAM
600 GB or higher capacity Hard Disk Drive
AGP Display Card
15" SVGA Color Monitor / TFT
104 keyboard, Mouse
Serial / Parallel / USB ports
Network Card
Software Requirement
Operating System: Windows 7.0 or above
SQL Server Standard Edition
Antivirus software (recommended - McAfee)
Acrobat Reader (Version 7 and above)

Connectivity Requirements

As per SEBI guidelines, there should be continuous mode of connectivity between CDSL and the DP. Hence, CDSL has chosen Local leased line / MPLS leased line as the mode of connectivity between the Central Depository Accounting System (CDAS) and the users. The user can also user their own Internet connectivity to access CDAS.

In case the applicant wishes to obtain leased line connectivity with CDSL, kindly download the Connectivity form and return the same duly completed to CDSL along with advance payment of Rs. 1,00,000/-, favouring CDSL. This advance amount will be adjusted against the first invoice raised by CDSL after commissioning the connectivity, against the applicable annual charges of the applied mode of connectivity.

Please Click here for Tarrif Details

Setup & Running Cost

Particulars Cost Payable to
For Single user setup 57,500 (INR) Vendor
For Multi-user setup(Server + 1 node) 1,77,500 (INR) Vendor
Particulars Cost Payable to
License fees NIL ---
License fee per additional user NIL ---
Particulars Cost Payable to
Application Fee 15,000 (INR) (plus 18% GST as applicable) SEBI(Through CDSL)
Registration Fees 2,00,000 (INR) (plus 18% GST as applicable) SEBI(Through CDSL)
Annual Fees(1,000 (INR) p.a.) 1,000 (INR) Per Anum (plus 18% GST as applicable) SEBI(Through CDSL)
Particulars Cost Payable to
Application Processing Fee 20,000 (INR) CDSL
Training Charges (for two persons) 10,000 (INR) CDSL
Interest free, Refundable Security Deposit 5,00,000 (INR) CDSL
Particulars Cost Payable to
Software Annual Maintenance Charges 40,000 (INR)for the main location 10,000 (INR) per additional location CDSL
Insurance Premium* 25,500 (INR) p.a. CDSL
Connectivity charges Click here for Connectivity charges CDSL

Note:
* Insurance Charges will be pro-rated from the date of receipt of SEBI registration.Software charges will be pro-rated monthly.for subsequent years the aforementioned charges is payable at the beginning of the year.

Particulars Cost Payable to
Registration fees for internet facility: 'easiest' 50,000 (INR) CDSL

Note:
Service tax at applicable rates will be charged.

Forms & Formats

Qualified DP Checklist

* To know more about QFI Click here

Page last updated on November 28, 2022    Dept:BD