The clearing member will choose a DP for the purposes of opening clearing member account. The choice may be based on convenience, comfort, services offered, cost or any other reason.
The clearing member will approach the DP of his choice and obtain the relevant account opening form.
The DP will specify the list of documents regarding references that need to be submitted along with the account opening form. The DP will also provide a copy of the DP-Client agreement.
The clearing member will submit to his DP the duly filled in account opening form & DP-client agreement along with documents regarding references specified by the DP.
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 will also indicate whether he wishes to avail of the "standing instruction" facility for receiving credit of securities from the clients' accounts.
The DP will verify whether the account opening form has been duly filled in or not. He will also verify the submitted documents. For corporate members, the DP will also verify whether the board resolution for the authorised signatories has been enclosed or not.
If the application form and documents are in order, then the DP will accept them and give an acknowledgement slip duly signed and stamped to the clearing member. The DP will execute the agreement and give a copy of it to the clearing member.
After completion of all documentation, the DP will inquire in the business partner (BP) Master in the DPM (software provided by NSDL to the DP) system, whether the clearing member is already a BP and has opened a clearing member account with some other DP.
After the DP is satisfied that the clearing member doesn't have CM account with any other DP, it will send a copy of the account opening form, copy of a letter from the clearing corporation regarding allotment of CM-Id and a covering letter (separate for different stock exchanges) stating the DP's willingness to open a clearing member account for the clearing member to NSDL.
NSDL will communicate an Id for the clearing member called CM-BP-Id to the DP of the applicant clearing member. This communication will be received by the DP in its DPM system.
The DP will enter the clearing member details as mentioned in the account opening form in the DPM (software provided by NSDL to the DP) screen provided for the purpose. For clearing members who have opted for the "standing instruction" facility for receiving credits from the clients' accounts, the DP will mark the standing instruction indicator for credits as enabled against the clearing account details in the DPM system. After entering the details in the system, a client account number will be generated by the DPM. The DP will enter this in the account opening form.
The DP will give a copy of the report listing the client details captured in the DPM database to the clearing member. The report will be generated by the DPM and will contain the following details
Clearing Member Name
Date of opening of account in the DPM system.
The DP will also inform NSDL the above details immediately after the account is opened in the DPM system.