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

System Specification & Investments

Participants are required to arrange for a dedicated I.T. set up (for DPM DP/CC system) installed in their office. Connectivity is required to be established between the Participantís set-up and the Depository system hosted at National Securities Depository Limited (NSDL). For smooth functioning of the system, the hardware, software & network equipment (LAN and WAN) for this setup is required to be in accordance with NSDL specification. As per the regulations of SEBI, the Participant is required to ensure continuous electronic means of communication (connectivity) with NSDL.

The minimum I.T. set up required for Participant comprises of single CPU Server, at least one client node (Desktop system) and networking hardware (LAN Switch, Router). The Participant may consider more number of CPUs, higher memory and/or disk capacity and more number of Desktop machines based on their estimates of volume of business. However, this could be added later to the set-up if the initial models chosen have the headroom for upgrade. The specifications of the I.T. setup required by a Participant are as follows: can be divided into:

Hardware Details

Description Hardware
Entry Level Server (with SOFTWARE RAID) for new DP Single CPU - speed Minimum 3 GHZ & RAM of 2 GB  **
(SCSI/SATA/SAS) 2 Hard Disk (each 80 GB minimum) configured with RAID 1 or three Hard Disk configured with RAID 5 for database drive, Separate hard disk for operating system (Min. 80 GB)
Any of the following can be used as Database backup device as per the convenience and choice of the Participant 1)DAT Drive OR 2) USB Drive OR 3)DVD Writer OR 4) LTO OR 5) DLT
Minimum 4 USB ports
Router Cisco Router 1800 series, 1900 series, 892 with Advanced Security IOS
Modem & Telephone Line/ ADSL Router Any Async “Dial up modem and Telephone line with STD facility OR option for auto dial out ISDN OR ADSL Router (Broadband Connection) OR USB data card for internet connection based on your bandwidth requirement
Scanner Any TWAIN compliant Scanner
Printer Any Laser Jet / Deskjet Printer
LAN  Switch Any LAN Switch with adéquate ports to connect both Server and Desktops used for DPM set-up.
UPS Any UPS with 30 minutes battery backup
USB E-token Make – Aladdin Pro 72 K #
Client Desktop Business Partner can procure Client Desktop of any make and model which is certified by Microsoft Operating System (Branded or Assembled)

**This entry level server configuration mentioned is recommended for Participants having volumes within the following sizing guidelines. If Participant expects the volumes to go beyond these guidelines, then server models that are upgradable to 8 GB RAM and Dual CPU can be bought while procurement. This will help adding CPU and /or RAM when volume reaches the below mentioned limits without the need to replace the server:

DPM–DP Setup (entry level) stated above can comfortably handle the following volumes  
Number of client accounts 1,00,000
Number  of  CM accounts 50
Number of Transactions / day 15000
Number of workstations simultaneously accessing the system 3

#Security Devices

NSDL provides "e-Token" with a Class 3 Digital Signature Certificate (DSC) as an authentication mechanism to be used by the Participants for carrying out their depository operations. Every Participant would be issued a e-tokens along with DSC certificates from NSDL Certifying Authority (CA) setup according to the number of nodes declared in form B & this DSC would be imported in the e-Token. E-Token is a USB device to be installed on client machines of Participants for carrying out their depository operations..

Server Models

Considering the rapidly changing models of Server and Client PCs resulting into improvised processor speeds at a competitive cost, NSDL has prescribed minimum configuration for Server & Client as mentioned in the above table to be used in the setup for NSDL operation. Participants are free to procure any model of Server & Client, of any hardware brand certified by the Microsoft Operating System with prescribed configuration mentioned in the above table. Participants are required to procure Router and Modem from the list of specific models prescribed by NSDL.

Participants are advised to ensure that the make and model of the Server and the Desktop to be used for the NSDL is certified by Microsoft Operating System by visiting Microsoft web site http://www.microsoft.com/ prior to procuring the hardware.

Licensed software to be procured and installed on Local DPM Server and Client Machine(s) are as listed below:

  • Microsoft Windows 2003 Server Standard Edition (Operating System) for Local DPM Server
  • Anti-Virus Software for Microsoft Windows 2003 Server
  • Microsoft SQL 2005/2008 Standard Edition Server Paper License
  • Windows XP Professional/ Windows 7 Professional for Client machine
  • Local DPM server software (GISMO) for NSDL operations (provided by NSDL)
    In addition following software is also required to be installed on local DPM Server
  • Compression utility software (Zip Central, Zip-it-Fast).
  • Acrobat reader (to be downloaded by Participant).
  • DOT Net 3.5 (for client machines - will be provided by NSDL).
  • Local DPM application Software (only client installation) (Provided by NSDL).

LAN Set-up

The LAN set-up of Participant includes Server, Client, Router, Modem (Dial Up/Broadband), Printer and Scanner (DP & CC Only).This Set -up should be exclusively used for NSDL operations only. Back-office set up can be connected to this set-up by representing the requirement and modality of connection to NSDL and obtaining its explicit concurrence.

Server OS, Client OS + SQL server Installation

License of latest available OS can be procured from Participants System Integrator, Vendor or any Microsoft channel partner. NSDL endeavors to qualify its application on new versions of operating systems and hence this will future protect the participantís investment and can be deployed as and when NSDL releases the compatible software version. The license of the current version, allows Participant to install the same software of earlier version as long as the said version is under the support of OEM. (i.e. if license of Windows 7 is procured, one can to install and use Windows XP). This is applicable to MS-SQL Database Server and Operating System license, as well.

Network Installation

If the router does not have the ISDN inbuilt port, there may be need to configure separate ISDN BRI Card on the Router used for DPM set-up for Connectivity. Advanced IOS to be installed in the Router. Upgrade the DRAM in the Router (Minimum 256 MB)

The cost to be incurred by a Participant can be divided into:

  • Initial Capital Cost &
  • Annual Recurring Cost

Capital cost

The initial capital cost to be incurred by a Participant can further be sub divided into

  • Infrastructural Cost
  • Security Deposit & Initial Fees

Infrastructural Cost

This will include cost related to office space required for conducting Depository operations and hardware & software cost. The space should be enough to allow for one server, one router, two nodes & provide easy movement to at least one operator. Additional space required will vary amongst Participants & will depend on volume of trades. Most categories of Participants being large institutions already having a network of offices/branches, the space cost will be notional. Tentative initial hardware & software cost

Sr. No Particulars Payable to Approximate Amount Range (Rs.)
1.   Hardware    
Server with Software Raid Vendor 50,000
Desktop Vendor 27,000
All remaining hardware i.e. (Printer, Scanner, Modem, Router, UPS) Vendor Approx -1,00,000
Hardware E-Token NSDL Available at no extra cost *
2. MPLS Charges (64kbps Charges) NSDL Annual Charges-65,000. Installation Charges (one time) of MPLS is Rs 11,000 #
3. ISDN (optional) Service Provider Participant to bear Dialing charges. No Charges are levied by NSDL.
 4.   Software    
Annual Charges for DPM Application Software license (New set-up) NSDL 40,000 ##
Approx charges for Other Software required {Windows 2003 standard server (32 Bit), Windows XP Professional/Windows 7 Professional, Antivirus)} Vendor Approx-50,000
MS-SQL Database Server 2005/2008 Vendor 80,000 ***
Zip it Fast/Zip Central   Free download available on Internet

Notes: The above mentioned hardware cost is the tentative initial cost. The price varies based on brand and model selected. NSDL has empanelled wide range of brands and models for Participants' selection convenience.

*E-Token will be provided by NSDL initially at the time of Participant starting the Depository Services. The E-Tokens will be provided for the Client machines procured and declared for DPM Set-up. Subsequent loss or damage of E-Token, or additions of more Desktops which may need new E-Tokens will have to be procured by the Participants from vendor of their choice.

## The Participant can either opt for Annual Charges of Rs.40,000 or One time Charges of Rs 2,50,000 for DPM Application Software license.

***Software CD provided by NSDL.Licenses to be procured by Participant (Full Server pack will come with Minimum 5 user licenses)

# MPLS TARIFF

No Bandwidth Annual Charges
1 64 kbps Rs. 65,000
2 128 kbps Rs. 75,000
3 256 kbps Rs. 85,000

Note: One time installation Charges of MPLS is Rs 11,000.
The above charges are inclusive of Taxes
Other options for bandwidths of 512kbps,1mbps and 2 mbps are also available.

Initial Fees

The following fees should be paid by a Demand Draft or a Bankers Cheque to SEBI / NSDL as applicable

Fees Payable to SEBI :
Particulars Amount (Rs.)
Application Fees 5,000
Registration Fees 1,00,000
Total 1,05,000
Fees Payable to NSDL :
Particulars Amount (Rs.)
Entry Fee # 25,000
Insurance # 22,250
Total # 47,250

# Note: Service Tax @ 12% + Education Cess @ 2% on Service Tax + Higher Education Cess @ 1 % on Service Tax is applicable on the DPM Application Software Charges, and Insurance Premium.

Security Deposit

A refundable security deposit of Rs. 10 Lakh is payable to NSDL.

Annual recurring cost

  • Fees payable to SEBI
  • Other operational cost

Fees payable to SEBI

Each Participant must pay an annual fee of Rs. 1,000 to SEBI as per the details given in the Second Schedule of the SEBI Regulations.

Operational Cost

The operational cost can be sub-divided into:

  • Expenses on Man Power: Each Participant needs a System Administrator for Participant Operations. While a large Participant will need a separate operator for data entry, average and small participants need not have one. It is expected that the system administrator himself will enter the orders and take care of things such as back up of data, generation of reports, administration of client database, etc. For back office operations a large Participant will need 6 to 8 employees at officer level, an average Participant will need about 2 to 3 employees & a small Participant needs only 1 employee. Every Participant also needs a Manager to co-ordinate all the back office work. A compliance officer has to be appointed to ensure compliance with the rules and regulations governing Participant operations.
  • Insurance Cost: The participants will also incur annual insurance cost. The premium paid by a Participant is a minimum of Rs. 25,000 p.a. including service tax The insurance premium is based on depository usage by a Participant. The insurance cover of a Participant shall cover the losses pertaining to the Business Risks of the Participant in the depository. In case of Business risk there is no annual upper limit on the number of claims that can be made. However the maximum amount in respect of each claim is Rs. 100 crore.
  • Other Expenses: Apart from the above mentioned expenses, the Participant will also incur certain other expenses like electricity, conveyance, printing & stationery, legal & professional, auditor's remuneration, staff welfare expenses etc. It is estimated that these expenses will constitute about 15% of the operating expenses.