NSDL depository reaches its services to investors through market intermediaries called Depository Participants (DP), who as per SEBI regulations could be organisations involved in the business of providing financial services like banks, brokers, custodians, financial institutions, etc. This system of using the existing distribution channel helps NSDL to reach to a wide cross section of investors spread across a large geographical area.
The admission of DPs involves a detailed evaluation by NSDL and a further evaluation and approval by SEBI.
Realising the potential in this market, all the custodians in India and a number of banks, financial institution and major brokers have already joined NSDL as DPs and they are providing services in a number of cities. Many more organisations are in various stages of establishing connectivity with NSDL.