National Securities Depository Limited
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Home  :  Joining NSDL  :  As a Broker

Joining NSDL as a Broker

Members of the stock exchanges are an important link between investors and the clearing house in the depository system. Securities bought or sold are routed through the clearing member account for settlement in the depository system.

Therefore, to settle trades in dematerialised securities, a stock exchange member must open a clearing account with any DP.

Clearing member account : Member brokers of those stock exchanges which have established electronic connectivity with NSDL need to open a clearing member account, with a DP of his choice, to clear and settle trades in the demat form. This account is meant only to transfer shares to and receive shares from the clearing corporation/ house and hence, the member broker does not have any ownership (beneficiary) rights over the shares held in such an account.

Further, clearing members of stock exchanges permitting Vyaj Badla and ALBM transactions can request for a "clearing member Vyaj Badla" account to participate in Vyaj Badla transactions and "clearing member ALBM" account to participate in ALBM transactions. These additional CM Accounts maintained for the purpose of Vyaj Badla or ALBM transactions will have to be necessarily opened with the clearing house of the concerned stock exchange e.g. a BSE clearing member's "normal clearing member account" could be with a DP XYZ, but his "clearing member vyaj badla" account will have to necessarily be with the clearing house of the concerned stock exchange.

  • The clearing member account has three parts
    • Pool Account : Shares are received from selling clients in the pool account. Transfer to buying clients is also done from the pool account.
    • Delivery Account : Shares received from selling clients are moved from the pool account to the clearing corporation/ house through the delivery account.
    • Receipt Account : Shares are received in the pool account from the clearing corporation/ house through the receipt account.



  • A Clearing Member can open only one clearing member account per exchange. Clearing members of stock exchanges permitting Vyaj Badla and ALBM transactions can request for a "clearing member Vyaj Badla" account to participate in Vyaj Badla transactions and "clearing member ALBM" account to participate in ALBM transactions. These additional CM Accounts maintained for the purpose of Vyaj Badla or ALBM transactions will have to be necessarily opened with the clearing house of the concerned stock exchange.
  • A clearing member can close his clearing member account with one DP and open another clearing member account with another DP

Procedure for opening Clearing Member Account

Procedure for shifting Clearing Member Account

  • A Clearing Member can open only one clearing member account per exchange which provides demat trading.
  • Along with duly filled in account opening form & DP-client agreement the clearing member will also submit a letter from the clearing corporation/ house regarding allotment of CM-Id to the clearing member.
  • The clearing member should ensure that the following details are mentioned in the account opening form
    • Clearing corporation/ clearing house Id
    • Stock Exchange clearing code (given by Stock Exchange)
    • SEBI Registration Number (given by SEBI)
    • Trade Name (name in which trading firm is registered)
  • The clearing member has to indicate whether he wishes to avail of the "standing instruction" facility for receiving credit of securities from the clients' accounts.