Who is depository participant dp

An agreement between the DP and the depository regulates their relationship. There are two types of Depositories in India. Thus, a DP may be operating under any one of the two depository institutions. The two depository institutions are-. The investors need to open a depository account with the DP to avail the depository services such as trading account maintenance, dematerialisation, rematerialisation of securities, etc. The list of entities which qualify to become a DP is:.

They are-. Disclaimer: The materials provided herein are solely for information purposes. No attorney-client relationship is created when you access or use the site or the materials.

The information presented on this site does not constitute legal or professional advice and should not be relied upon for such purposes or used as a substitute for legal advice from an attorney licensed in your state. City Select City. How to save income tax. Everything you need to know about portfolio management. November 15, admin admin If you have shares in physical form and wish to transfer them after 1st April , Demat Account.

November 14, admin admin 2. Every company enlisted on the Indian stock exchange is obligated to offer shares in both, physical Leave a Comment Cancel reply Your email address will not be published. Invest Now. Open A KarvyOnline Account.

Already A Member? Once the documentation is over, the DP who is basically a stock brokerage firm, bank, sub-broker etc. DP purchases dematerialised shares in your name and saves them in your Demat Account and charges a minimum brokerage. Advantages of trading through a demat account? A Demat Account promises security in transactions, timely delivery of shares, reduced fraudulent transactions.

As the paper use is limited in the process so costs associated are reduced greatly and the cost per transaction is also lowered than physical trading.

The process has provided mobility and ease of working from anywhere. Like us on Facebook and follow us on Twitter. Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates. Depository Participant is described as an Agent law of the depository.

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