Home : Joining NSDL : As a DP
As per Regulation 19(a) of 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 Rs.Three crore. 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.