Depository Participant (DP)
Full form: Depository Participant
A Depository Participant, or DP, is a SEBI-registered bank, broker or app that opens your demat account and links it to the depositories that hold the actual records. It is the link between you and NSDL or CDSL, the way a bank branch links you to the wider banking system.
What a DP does
You cannot deal with a depository directly. You choose a DP, which opens your demat account, completes your KYC and links the account to NSDL or CDSL. Your shares are recorded at the depository, and the DP is the point of contact that lets you see and use them.
What a DP does not do
A DP does not itself hold your shares. The electronic records sit with NSDL or CDSL. That is why the proof of your shares stays safe even if your broker or app stops working, and why a demat statement is the place to check what you own.
Choosing one
Opening an account is a fixed checklist: your PAN, Aadhaar and bank details, KYC, and an e-signature. Check that the DP is SEBI-registered before you sign up. It takes a few minutes on SEBI's own site. DPs charge fees for the account, which differ, so compare the current charges.
DP, broker and trading account
Many brokers are also DPs, so you often open a trading account and a demat account together. They work as a pair: the trading account is where you place an order, and the demat account is where what you own actually sits afterwards.
Opening an account through a DP (hypothetical)
Meera picks a broker app that is a SEBI-registered DP. She uploads her PAN card, her Aadhaar card and a photo of her bank passbook, completes KYC in about 20 minutes and e-signs the form. Her bank account is linked with a ₹1 check. Her demat and trading accounts go active the same day, and her shares, once bought, will be recorded at NSDL or CDSL.
Common questions
- What is the full form of DP?
- Depository Participant.
- Is a DP the same as a broker?
- Not always. Many brokers are also DPs, but a DP can also be a bank or another registered firm. The DP role is opening and linking your demat account.
- Where are my shares actually held?
- At a depository, NSDL or CDSL. The DP links you to it and does not hold the shares itself.
- How do I check that a DP is genuine?
- Check its SEBI registration on SEBI's official site before you sign up.