Depository Participants
Eligibility criteria to become DP
Eligibility
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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.

  • a) The minimum net worth requirement for a stock broker to become CDSL DP is 2 crores (INR).
    b) A stock broker having net worth of not less than 1 crore (INR) may be admitted as CDSL DP under category 'Limited Depository Participant' subject to condition that they will increase the networth to atleast 2 crores (INR) so as to be at par with existing stock broker DPs in terms of networth requirement.Till such time the DP increases the networth to atleast 2 crores (INR) the DP under 'Limited DP' category will be permitted to open only upto 5000 accounts. Such networth is computed in the manner specified in the operating instructions issued by CDSL from time to time.

  • 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.

Page last updated on February 15, 2016     Dept:Admission & Operations