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DEPOSITORY PARTICIPANT

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■ A Depository Participant (DP) is the representative of the investor in the depository system providing link between the Company and investors through depositories. 

■ An investor opens its Demat Account with a Depository Participants for keeping its securities in electronic form. 

■ As per SEBI regulations, DP could be organizations involved in the business of providing financial services like banks, brokers, custodians and financial institutions. 

■ In short, it is a market intermediary through whom the depository services can be availed by the investors is called a Depository Participant (DP). 

Functions of the Depository Participant in connection with Dematerialization:

(a) Acts as the agent of Depository;

(b) Customer interface of Depository;

(c) Account Opening;

(d) Facilitates dematerialization;

(e) Instant transfer on payout;

(f) Credits to investor on IPO, rights and bonus;

(g) Settles trades in the electronic segment. 

Functions of the Registrar/Issuer in connection with Demat Account:

(a) Dematerialization;

(b) Confirmation of Beneficiary Holdings;

(c) Corporate actions – Rights, Bonus, etc.;

(d) Reconciliation of Depository Holdings;

(e) Dematerialization

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