
	Home Advisory & Audit ESG Advisory BRSR Reporting Sustainability and ESG Solutions ESG Reporting ESG Assurance in Audit Sustainable Supply Chain Management Sustainable Finance ESG Due Diligence Advisory Services Income Tax Notice Tax Litigation Tax Preparation Services Tax Optimization Corporate Tax Corporate Tax and Regulatory Compliance Corporate Tax Advisory Services Transfer Pricing in India TP Planning Documentation and assistance in Compliances Domestic Transfer Pricing Indian Accounting Standards International Tax Advisory Services International Tax Planning Audit Insurance broker audit Income Tax Audit Secretarial Audit in India NBFC Audit Internal Control Audit Internal Audit Co-Sourcing Internal Audit Insurance Audit Human Resource Audit Public Limited Audit Private Limited Audit Financial Statement Audit NGO Audit Advertising Audit Media Audit Cinema Audit Management Audit Virtual Audit Audit Services Global Audit Stock Audit Audit and Assurance Consulting Sustainability and ESG Solutions Manufacturing Consulting BFSI Consulting Employee Benefit Plans System and Organizational control reporting Accounting Advisory and Financial Reporting Dispute Advisory Global Expansion Advisory GST Advisory Services Investment Banking Advisory IPO Readiness Advisory Regulatory FEMA Advisory Foreign Exchange Regulations Inbound Investment under FEMA Outbound Investment under FEMA Establishment of Foreign Office in India Foreign Direct Investment under the Approval Route FEMA Compliance for Insurance Companies Compliance under FEMA ECB Compliance Advisory Compliances Insurance Broker Compliances Insurance Web Aggregator Compliances Payment Aggregator and Payment Gateway Compliances NBFC Account Aggregator Compliances NBFC Annual Compliance Funding in NBFC Appeal Against NBFC Registration Cancellation Financial Intelligence Unit India Central KYC Registry in India Money Changer Compliance MCA Compliance for Insurance Company IRDA Compliance for Insurance Company IBC Services Corporate Insolvency RBI Registration NBFC Business Plan RBI Regulatory Sandbox NBFC Due Diligence NBFC Debt Recovery Advisory NBFC Legal Support NBFC Registration NBFC Takeover NBFC Marketing NBFC Account Aggregator (AA) License Conversion Of NBFC Into Bank Peer to Peer Lending License Full Fledged Money Changers Prepaid Wallet License Payment Aggregator License Payment Bank License Microfinance Company Registration Small Finance Bank License Core Investment Company Asset Reconstruction Company Registration MTSS (Money Transfer Service Scheme) Credit Co-operative society Housing Finance Company Registration Housing Cooperative Society Registration SEBI Registration Registration of Mutual Fund with SEBI Alternative Investment Fund Registration Collective Investment Schemes Credit Rating Agency SEBI Registration Depository Participant SEBI Registration Foreign Portfolio Investor Registration Asset Management Company Registration Investment Advisors registration with SEBI Portfolio Manager Registration With SEBI Registrar and Share Transfer Agent Registration Registration of Underwriters with SEBI Venture Capital Company Registration Merchant Bankers License in India IRDA Registration Insurance Web Aggregator Legal Support ISNP Certification IRDAI Regulatory Sandbox Insurance Web Aggregator License Insurance Broker License Insurance Marketing Firm Licence Insurance Surveyors and Loss Assessors Licence Internal Control and Organisation SOPs Third Party Administrator Licence Corporate Agency Licence IRDA Insurance License Outsourcing VFCO Services Estate Planning Enterprise and Strategic Risk Management Services Wealth Management Services For Non Executive Directors Leadership Management Revenue Recognition Cash Flow Management Compensation and Benefits Virtual CFO for NBFC CFO Support Services Virtual CFO Services Financial Process Outsourcing Finance And Accounting Outsourcing Legal Process Outsourcing Human Resource Outsourcing Financial Reporting IFRS Reporting Strategic Planning Services Company About Us Our Team Career Contact Us Knowledge Bank Calculators GST Calculator Tax Calculator TDS Calculator Calculate Net Profit Calculate Net Worth Effective Capital HRA NSC EMI Auto Loan Calculator Home Loan Calculator Get No. Of Installment RERA Calculator Developers Calculator Home Buyer Delay Interest Home Buyer Refund SIP CALCULATOR Lumpsum CALCULATOR Bulletins RBI SEBI Notification Circular Income Tax Service Tax Central Sales Tax Excise Matters Customs Company Law Labour Laws FEMA The LLP Act 2008 Accounting Standard (INDAS) Others GST VAT Delhi VAT Maharastra VAT Gujarat VAT Telangana VAT Tamil Nadu VAT IGST UTGST Compensation Cess IBC Regulation Utilities Rates of TDS TDS Rates for N.R.I us 195 Rates of Income Tax Depreciation Rates Companies Act Depreciation Rates Income Tax Act ROC Filing Fees (Cos Act, 2013) ROC Fee Structure (Cos Act, 2013) Cost Inflation Index IFSC Codes MICR Codes Rates of NSC Interest Gold and Silver Rates Rates of Stamp Duty LLP Fees National Industries Classification HSN Rate List Deduction u/s 80TTA Vs 80TTB Links Quick Links Important Links GST/VAT Links Ease Of Doing Business Acts Direct Tax Income Tax Act Wealth Tax Act Income Declaration Scheme 2016 Direct Tax Vivad Se Vishwas Scheme Indirect Tax Service Tax(Finance Act, 1994) Central Sales Tax Act, 1956 The Central Excise Act, 1944 Customs Act, 1962 Entry Tax Act Corporate Laws Companies Act, 2013 Companies Act, 1956 LLP ACT SEBI Act, 1992 Company Secretaries Act, 1980 VAT Laws Delhi Value Added Tax Act, 2004 MVAT Act, 2002 West Bengal VAT Act, 2003 Tamilnadu VAT ACT, 2006 Karnataka Value Added Tax Act, 2003 Gujarat Value Added Tax Act, 2003 UP VAT Act, 2008 Rajasthan Value Added Tax Act, 2003 Punjab Value Added Tax Act Haryana Value Added Tax Act Telangana VAT Act 2005 Andhra Pradesh VAT Act, 2005 Bihar Value Added Tax Act, 2005 Other Statutes ESI Act, 1948 PF Act, 1952 Profession Tax Act The Indian Partnership Act, 1932 Societies Registration Act, 1860 Competition Act, 2002 Reserve Bank of India Act, 1934 MRTP Act, 1969 Equalisation Levy Act, 2016 Right To Information Act, 2005 FEMA, 1999 Maharashtra RERA RERA, 2016 Insolvency & Bankruptcy Code, 2016 Benami Property Act 1988 GST Laws IGST Act , 2017 CGST Tax Act, 2017 UTGST Act, 2017 GST (Compensation to States) Act Rules Direct Tax Rules Income Tax Rules Wealth Tax Rules 1957 Income Declaration Scheme Rules 2016 Indirect Tax Rules GST Valuation Rules , 2016 Service Tax Rules CST (Delhi) Rules, 2005 CST (Maharashtra) Rules Customs Valuation Rules Cenvat Credit Rules, 2017 Entry Tax Rules Corporate Laws Rules Companies Rules, 2014 LLP Rules, 2009 LLP Winding up Rules, 2012 Cos Unpaid Dividend Rules, 1978 VAT Laws Rules Delhi VAT Rules, 2005 Maharashtra VAT Rules, 2005 West Bengal VAT Rules, 2005 Tamilnadu VAT Rules, 2007 Karnataka VAT Rules, 2005 Gujarat VAT Rules, 2006 Uttar Pradesh VAT Rules, 2008 Rajasthan VAT Rules, 2006 Punjab VAT Rules Haryana VAT Rules, 2003 Telangana VAT Rules 2005 Andhra Pradesh VAT Rules, 2005 Bihar Value Added Tax Rules, 2005 Other Statutes Profession Tax Rules NBFC Deposits Directions, 1998 NBFC & Misc NBC (Advt) Rules, 1977 NBFC Auditor Report Directions, 2008 Delhi Labour Welfare Fund Rules, 1997 Cost records and audit Rules, 2014 Baggage Rules, 2016 Equalisation Levy Rules, 2016 NCLT And NCLAT Rules Insolvency & Bankruptcy Rules Benami Property Rules, 2016 GST Rules CGST Rules, 2017 IGST Rules 2017 Forms Income Tax Forms ROC Forms (Cos Act, 2013) ROC Forms (Cos Act, 1956) Income Declaration Forms Wealth Tax Forms Service Tax Forms Companies Unpaid Dividend Forms NBFCs Forms LLP Winding up FEMA Forms LLP Forms CGST Forms GST Forms Accounts and Records Advance Ruling Appeals and Revision Assessment and Audit Composition Demands and Recovery Input Tax Credit Inspection, Search and Seizure Offences and Penalties Payment of Tax Refund Registration Returns Transitional Provisions Value of Supply Careers

What is Depository Participant?

A depository is a form of institution or organization which holds securities of investors in the form of shares, debentures, bonds, government securities, mutual fund units etc. in electronic form at their request through a registered depository participant. It also provides services in relation to transactions in securities.

The similarity between bank and depository as explained below

BANK	DEPOSITORY
It holds funds in an account	It holds securities in an account
On the instruction of account holder, it transfers the funds between their accounts	On the instruction of account holder, it transfers securities between their accounts.
It facilitates transfer without having to handle money	It facilitates transfer of ownership without having to handle securities.

MAIN FUNCTION OF DEPOSITORY

It works as a link between the listed companies which issue shares and their shareholders. Listed Companies issues their shares through agents associated with it called depository participants or DPs. A DP can be a bank, financial institution, a broker, or any entity eligible as per SEBI norms and who is responsible for the final transfer of shares from the depository to investors. The investor, at the end of a transaction, receives a confirmation from the depository.

SERVICES PROVIDED BY DEPOSITORY

Dematerialization (usually known as demat) process of converting physical certificates of investor into an equivalent number of Securities electronic form
Dematerialization, known as demat, is a process of converting securities held in electronic form in a demat account back in physical certificates form.
Transfer of securities, change of beneficial ownership
Settlement of trades done on exchange connected to the Depository
Pledging and Unplugging of Securities for loan against shares
Corporate action benefits directly transfer to the Demat and Bank account of customer

NEED FOR THE DEPOSITORY

A depository eliminates the risk of holding physical securities. After the depository system came, such risks as of damage, loss or theft have been greatly reduced since the shares are held in and transferred in an electronic manner. They also reduce the paperwork involved in trading and fasten the transfer of shares.

TYPES OF DEPOSITORY

As per the Depository Act of 1996 two depositories are established in India, namely National Securities Depository Limited (NSDL) which is promoted by the National Stock Exchange, Industrial Development Bank of India and Unit Trust of India among others. The other depository is the Central Depository Services Limited (CDSL) which is promoted by the Bombay Stock Exchange Bombay Stock Exchange, State Bank of India, Bank of India among others.

DEPOSITORY PARTICIPANT

A DP is an agent of the depository. They are the intermediaries between the depository and the investors. The relationship between the DPs and the depository is governed by an agreement made between them as per the Depositories Act, 1996. The DP may be a financial institution, scheduled commercial banks, foreign banks operating in India with the approval of RBI, clearing corporations/clearing houses, stock-brokers etc.

Depositories and Depository participant both are regulated under the purview of SEBI on the basis guidelines framed by them. DP can be operational only after the registration with SEBI post getting recommended by the NSDL and CDSL.

Procedure for becoming a Depository Participant is explained below:

The applicant seeking to get registered shall file an application to the board for the grant of registration in Form E, through depository in which the applicant proposes to act as a participant, along with the fees of INR 15,000.
Depository then, forward this application to the board not later than 30 days of its receipt along with the recommendation that applicant complies with the eligibility criteria as specified in regulations.
On receipt of application, the board may ask the applicant or depository to which applicant is getting to be admitted as participant, to furnish further information or present in person, if required for the grant of certificate. The board can even reject the application if believes that it is not complete in all respect and also doesn't conform to the specified instruction.
For the purpose of grant of certificate of registration, the board considers all the matters which is relevant to carry out the activities of a Depository Participant as discussed below:
the applicant should belong to one of the following categories:

1. a public financial institution as defined
2. With the approval of RBI, only a foreign bank operating in India
3. a clearing corporation of a stock exchange
4. State Financial Corporation
5. A stockbroker who has been granted a certificate of registration by the board
6. Such others as prescribed in the regulation

The applicant should be fit and proper person
The applicant should be eligible to get admitted as participant to depository through which it has filled the application to the board.
If the board is satisfied that applicant is eligible for the grant of certificate, they grant the certificate of registration in Form F subject to the payment of fees as prescribed in the regulations.

As depository system enhances the liquidity of securities in the market, they have reduced the scope of theft, fraud, and damages; therefore, investor is more interested in investing through this mode. So, applicant who is seeking or interested in starting their business as DP, TAP GLOBAL can help them in getting registered with SEBI and preparing all other documents as required The interested one can mail their query on our mail-id info@tapglobal.com.. Detailed information is also provided on our website www.tapglobal.in