The SEBI Regulations specify the format in which any of the eligible entities can apply to become a DP. An applicant has to submit the duly filled application form to NSDL along with the details specified in the Bye Laws.
On receiving this application, NSDL requests for specific organisational and network details from the applicant vide specified formats.
After this the applicant has to install the requisite hardware, system software & VSAT equipment and intimate NSDL of the completion of installation vide a specified format. On verification of these details, NSDL confirms installation of necessary hardware and VSAT connectivity and forwards the application form to SEBI.
A comprehensive training programme covering all operational aspects of the depository system is conducted at NSDL for all the applicants. NSDL then requests for details of the software resources available with the applicant, which the applicant has to furnish vide a specified format. On furnishing these details, the applicant is instructed to install the software required for DP operations (DPM) in the test environment. On completion of successful installation of the software, NSDL organises for the pilot testing of the system. After completion of successful pilot testing the applicant re-installs the software in the live environment as per the directions given by NSDL.
The applicant completes the registration process by paying the registration and annual fees to SEBI.
As per the Bye Laws, the DP also has to sign a bilateral agreement with NSDL. After signing the agreement, the applicant pays the entry fee and security deposit to NSDL to become operational.