Home : Joining NSDL : As a DP
Eligibility
As per SEBI (Depositories & Participants) Regulations, following are the categories that are eligible to become DPs -
| (i) | A public financial institution as defined in section 4A of the Companies Act, 1956 (1 of 1956) |
| (ii) | A bank included for the time being in the Second Schedule to the Reserve Bank of India Act, 1934 (2 of 1934) |
| (iii) | A foreign bank operating in India with the approval of Reserve Bank of India |
| (iv) | A state financial corporation established under the provisions of section 3 of the State Financial Corporations Act, 1951 (63 of 1951) |
| (v) | An institution engaged in providing financial services, promoted by any of the institutions mentioned in sub clause (i), (ii), (iii), (iv), jointly or severally |
| (vi) | A custodian of securities who has been granted a certificate of registration by the Board under sub-section (1A) of section 12 of the Act |
| (vii) | A clearing corporation or a clearing house of a stock exchange |
| (viii) | A stock broker who has been granted certificate of registration by the Board under sub-section (1) of section 12 of the Act:
Provided that the stock broker shall have a minimum net worth of rupees 50 lakhs and the aggregate value of the portfolio of securities of the beneficial owners held in dematerialised form in a depository through him shall not exceed 100 times of the net worth of the stock broker. Provided further that if the stock broker seeks to act as a participant in more than one depository, he shall comply with the criteria specified in the first proviso separately for each such depository. Provided further that where the stockbroker has a minimum networth of Rupees Ten crore, the limits on the aggregate value of the portfolio of securities of the beneficial owners held in dematerialized form in a depository through him shall not be applicable. |
| (ix) | A non-banking finance company, having a net worth of not less than rupees fifty lakhs
Provided that such company shall act as a participant only on behalf of itself and not on behalf of any other person Provided further that a non-banking finance company may act as a participant on behalf of any other person, if it has a networth of Rs. 50 crore in addition to the networth specified by any other authority. |
| (x) | A registrar to an issue or share transfer agent who has a minimum net worth of rupees ten crores and who has been granted a certificate of registration by the board under sub-section (1) of section 12 of the Act. |
The Regulations empower NSDL to set its own selection criteria in the Bye Laws. Therefore, the applicants must also adhere to the following admission criteria stated in NSDL Bye Laws
- The applicant in the category of stock broker should have a minimum networth of ₹3 crore. The Stock Broker with networth lower than ₹3 crore but higher then ₹1 crore can become a Limited Participant of the Depository with the restrictions on business and/or for limited period as decided by Depository. In case of non- banking finance company (NBFC) and a registrar to an issue or share transfer agent, minimum networth as specified in the SEBI Regulations will apply.
- The applicant should not have been convicted in any of the five years immediately preceding the filing of the application in any manner involving misappropriation of funds & securities, theft, embezzlement of funds, fraudulent conversion or forgery.
- The applicant should not have been expelled, barred or suspended by SEBI, self regulatory organisation or any stock exchange. Provided however that, if a period of three years or more has elapsed since such punishment was imposed, the Depository may, in its discretion consider such application.
- The applicant shall be required to furnish information and details of his business history including the background and experience of directors and promoters of the applicant.