{"id":1029,"date":"2026-08-25T05:55:47","date_gmt":"2026-08-25T05:55:47","guid":{"rendered":"https:\/\/www.osto.one\/resources\/?p=1029"},"modified":"2026-08-25T05:55:47","modified_gmt":"2026-08-25T05:55:47","slug":"resources-glossary-depository-participant","status":"publish","type":"post","link":"https:\/\/www.osto.one\/resources\/glossary\/resources-glossary-depository-participant\/","title":{"rendered":"Depository Participant: Meaning, Services and SEBI Requirements"},"content":{"rendered":"\n<!-- OSTO GLOSSARY: Depository Participant. Paste into one Custom HTML block. Page title is intentionally excluded. -->\n<style>\n.og{--navy:#1c267a;--text:#0f1538;--line:#eceef5;--b0:#f4f5fd;--b1:#e9ecfa;--b2:#cfd5f2;--b7:#4a52a8;--s0:#f2f8f5;--s1:#e3f0e9;--s2:#c3ddce;--s7:#3a6f5d;--a0:#fdf6f0;--a1:#fbe9dc;--a2:#f2cdb2;--a7:#a2603a;--k0:#f1f7fb;--k1:#e2eff7;--k2:#bfd9e9;--k7:#2f6a89;--shadow:0 6px 22px rgba(15,21,56,.05);font-family:'Inter',-apple-system,BlinkMacSystemFont,'Segoe UI',Roboto,sans-serif;font-size:17px;line-height:1.72;color:var(--text)}\n.og p{margin:0 0 20px}.og h2{font:700 clamp(25px,3vw,30px)\/1.25 'Inter',sans-serif;letter-spacing:-.5px;color:var(--navy);margin:46px 0 8px;scroll-margin-top:92px}.og h2:after{content:\"\";display:block;width:46px;height:5px;border-radius:3px;margin:12px 0 18px;background:var(--b2)}.og h2.s:after{background:var(--s2)}.og h2.a:after{background:var(--a2)}.og h2.k:after{background:var(--k2)}.og strong{font-weight:600}.og a{color:var(--navy);text-underline-offset:3px}.og ul{padding-left:22px;margin:0 0 24px}.og li{margin-bottom:8px}\n.og .dek{font-size:20px;line-height:1.6;margin:0 0 18px}.og .tags{margin:0 0 28px;padding:0;list-style:none;display:flex;flex-wrap:wrap;gap:8px}.og .tags li{margin:0}.og .tag{display:inline-block;font-size:12px;font-weight:600;letter-spacing:.7px;text-transform:uppercase;padding:6px 13px;border-radius:20px}.og .tb{background:var(--b1);color:var(--b7)}.og .ts{background:var(--s1);color:var(--s7)}.og .ta{background:var(--a1);color:var(--a7)}\n.og .short{background:linear-gradient(135deg,var(--b1),var(--s1));border-radius:22px;padding:27px 31px;margin:0 0 28px}.og .short .label,.og .toc .label{font-size:13px;font-weight:700;letter-spacing:1.4px;text-transform:uppercase;color:var(--b7);margin:0 0 9px}.og .short p{font-size:18px;line-height:1.65;margin:0}.og .toc{background:var(--b0);border-radius:18px;padding:21px 26px;margin:0 0 30px}.og .toc ol{margin:0;padding-left:20px;columns:2;column-gap:30px}.og .toc li{margin-bottom:7px;break-inside:avoid;font-size:15px}.og .toc a{text-decoration:none}\n.og .call{padding:22px 26px;margin:0 0 26px;background:#fff;border:2px solid var(--navy);border-radius:4px}.og .call.soft{border:none;border-radius:18px;background:var(--b0)}.og .call.ap{border:none;border-radius:18px;background:var(--a0)}.og .call .label{font-weight:700;font-size:17px;margin:0 0 7px;color:var(--navy)}.og .call p:last-child{margin-bottom:0}\n.og figure{margin:0 0 28px}.og .sx{overflow-x:auto;border-radius:18px;background:#fff;box-shadow:var(--shadow)}.og .sx svg{display:block;width:100%;height:auto;min-width:650px}.og figcaption{font-size:14px;line-height:1.55;margin-top:11px}.og .swipe{display:none}\n.og table{width:100%;border-collapse:collapse;margin:0 0 26px;font-size:15px;background:#fff;border-radius:16px;overflow:hidden;box-shadow:var(--shadow)}.og th{text-align:left;padding:13px 15px;font-weight:700;font-size:12.5px;letter-spacing:.8px;text-transform:uppercase}.og td{border-bottom:1px solid var(--line);padding:12px 15px;vertical-align:top;line-height:1.55}.og tr:last-child td{border-bottom:none}.og .hb th{background:var(--b1);color:var(--b7)}.og .hs th{background:var(--s1);color:var(--s7)}\n.og details{background:#fff;border-radius:14px;margin:0 0 10px;box-shadow:0 2px 10px rgba(15,21,56,.04)}.og summary{cursor:pointer;padding:15px 19px;font-weight:600;font-size:16px;color:var(--navy);list-style:none;display:flex;justify-content:space-between;gap:16px}.og summary::-webkit-details-marker{display:none}.og summary:after{content:\"+\";font-size:22px;line-height:1;color:var(--b7)}.og details[open] summary:after{content:\"\\2013\"}.og details p{padding:0 19px 17px;margin:0;font-size:15px;line-height:1.65}.og .related{font-size:15px;border-top:1px solid var(--line);padding-top:20px;margin-top:34px}\n@media(max-width:700px){.og{font-size:16px}.og .dek{font-size:18px}.og .short p{font-size:17px}.og .short,.og .toc,.og .call{padding:21px 19px}.og .toc ol{columns:1}.og .swipe{display:inline;font-weight:600;color:var(--b7)}.og table{font-size:14px}.og th,.og td{padding:11px 12px}}\n<\/style>\n\n<div class=\"og\">\n<p class=\"dek\">A Depository Participant is the investor-facing agent of a depository, providing access to demat accounts and services for holding and transferring securities electronically.<\/p>\n<ul class=\"tags\"><li><span class=\"tag tb\">Glossary<\/span><\/li><li><span class=\"tag ts\">SEBI compliance<\/span><\/li><li><span class=\"tag ta\">Securities market<\/span><\/li><\/ul>\n\n<div class=\"short\"><p class=\"label\">The short answer<\/p><p>A <strong>Depository Participant (DP)<\/strong> is an intermediary registered to act as an agent of a depository. Investors interact with the depository system through the DP to open and operate demat accounts, hold securities electronically, transfer them and use services such as pledging, transmission and dematerialisation. In India, DPs connect investors with the two SEBI-registered depositories, NSDL and CDSL.<\/p><\/div>\n\n<p>The DP is the service point the investor deals with, while the depository maintains the central electronic record. Banks, stock brokers, custodians and certain other eligible institutions can operate as DPs after meeting the applicable requirements.<\/p>\n\n<div class=\"toc\"><p class=\"label\">On this page<\/p><ol><li><a href=\"#works\">How a DP works<\/a><\/li><li><a href=\"#services\">Services provided by a DP<\/a><\/li><li><a href=\"#difference\">DP, depository and broker<\/a><\/li><li><a href=\"#security\">SEBI and cybersecurity context<\/a><\/li><li><a href=\"#osto\">How Osto supports DPs<\/a><\/li><li><a href=\"#faq\">FAQ<\/a><\/li><\/ol><\/div>\n\n<h2 id=\"works\">How does a Depository Participant work?<\/h2>\n<figure><div class=\"sx\"><svg viewBox=\"0 0 780 255\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" role=\"img\" aria-label=\"Depository participant connects an investor and demat account with NSDL or CDSL.\"><defs><marker id=\"da\" markerWidth=\"9\" markerHeight=\"9\" refX=\"7\" refY=\"4.5\" orient=\"auto\"><path d=\"M0 0L9 4.5 0 9Z\" fill=\"#1c267a\"\/><\/marker><\/defs><g stroke=\"#1c267a\" stroke-width=\"2\" marker-end=\"url(#da)\"><line x1=\"207\" y1=\"121\" x2=\"274\" y2=\"121\"\/><line x1=\"506\" y1=\"121\" x2=\"573\" y2=\"121\"\/><\/g><g font-family=\"Inter\" text-anchor=\"middle\"><rect x=\"35\" y=\"67\" width=\"172\" height=\"108\" rx=\"20\" fill=\"#e2eff7\"\/><text x=\"121\" y=\"105\" font-size=\"15\" font-weight=\"700\" fill=\"#2f6a89\">INVESTOR<\/text><text x=\"121\" y=\"134\" font-size=\"12\" fill=\"#0f1538\">Demat account holder<\/text><text x=\"121\" y=\"153\" font-size=\"12\" fill=\"#0f1538\">and beneficial owner<\/text><rect x=\"274\" y=\"54\" width=\"232\" height=\"134\" rx=\"24\" fill=\"#1c267a\"\/><text x=\"390\" y=\"102\" font-size=\"18\" font-weight=\"700\" fill=\"#fff\">DEPOSITORY<\/text><text x=\"390\" y=\"126\" font-size=\"18\" font-weight=\"700\" fill=\"#fff\">PARTICIPANT<\/text><text x=\"390\" y=\"155\" font-size=\"12\" fill=\"#dfe2f4\">account and service interface<\/text><rect x=\"573\" y=\"67\" width=\"172\" height=\"108\" rx=\"20\" fill=\"#e3f0e9\"\/><text x=\"659\" y=\"105\" font-size=\"15\" font-weight=\"700\" fill=\"#3a6f5d\">DEPOSITORY<\/text><text x=\"659\" y=\"134\" font-size=\"12\" fill=\"#0f1538\">NSDL or CDSL<\/text><text x=\"659\" y=\"153\" font-size=\"12\" fill=\"#0f1538\">central electronic record<\/text><text x=\"390\" y=\"226\" font-size=\"12.5\" fill=\"#0f1538\">The investor reaches the depository system through the DP.<\/text><\/g><\/svg><\/div><figcaption><span class=\"swipe\">Swipe to see the full diagram. <\/span>The DP acts as the operational bridge; it does not become the beneficial owner of the investor\u2019s securities.<\/figcaption><\/figure>\n\n<p>The Depositories Act defines a participant as a person registered in that capacity. Operationally, the depository appoints the DP as its agent, and the investor enters the depository system through that participant. The investor remains the beneficial owner and retains the rights and benefits attached to the securities.<\/p>\n\n<h2 id=\"services\" class=\"s\">What services does a DP provide?<\/h2>\n<table class=\"hs\"><thead><tr><th>Service<\/th><th>What it means for the investor<\/th><\/tr><\/thead><tbody><tr><td><strong>Demat account opening<\/strong><\/td><td>Completing account-opening, identity and KYC processes to access electronic securities holdings.<\/td><\/tr><tr><td><strong>Dematerialisation<\/strong><\/td><td>Converting eligible physical securities into electronic form.<\/td><\/tr><tr><td><strong>Rematerialisation<\/strong><\/td><td>Converting electronic holdings back into physical form where permitted.<\/td><\/tr><tr><td><strong>Transfer and settlement<\/strong><\/td><td>Processing instructions to move securities between accounts or complete market settlement.<\/td><\/tr><tr><td><strong>Pledge and hypothecation<\/strong><\/td><td>Recording securities as collateral without transferring beneficial ownership outright.<\/td><\/tr><tr><td><strong>Transmission<\/strong><\/td><td>Transferring securities after the death of an account holder according to the applicable process.<\/td><\/tr><tr><td><strong>Statements and account updates<\/strong><\/td><td>Providing holding and transaction information and processing changes such as nomination or account closure.<\/td><\/tr><\/tbody><\/table>\n\n<div class=\"call soft\"><p class=\"label\">DP and demat account are not the same thing<\/p><p>The demat account is the electronic account holding the investor\u2019s securities. The DP is the registered intermediary that opens and services that account within the depository system.<\/p><\/div>\n\n<h2 id=\"difference\" class=\"k\">Depository, DP and stock broker: the difference<\/h2>\n<table class=\"hb\"><thead><tr><th>Entity<\/th><th>Primary role<\/th><\/tr><\/thead><tbody><tr><td><strong>Depository<\/strong><\/td><td>Maintains the central infrastructure and records for securities held in electronic form. India\u2019s two depositories are NSDL and CDSL.<\/td><\/tr><tr><td><strong>Depository Participant<\/strong><\/td><td>Acts as the depository\u2019s agent and provides demat services directly to investors.<\/td><\/tr><tr><td><strong>Stock broker<\/strong><\/td><td>Executes securities trades on an exchange for clients. A broker may also be registered as a DP, but the two roles remain legally and operationally distinct.<\/td><\/tr><\/tbody><\/table>\n\n<p>This is why an investor may receive trading services and demat services from the same brand but under different registrations and terms. Trading creates the transaction; the depository system records the resulting securities movement and holding.<\/p>\n\n<h2 id=\"security\" class=\"a\">Depository Participants under SEBI\u2019s cybersecurity framework<\/h2>\n<p>Depository Participants are SEBI Regulated Entities covered through their depositories under the Cybersecurity and Cyber Resilience Framework. CSCRF categorises institutional DPs as <strong>Qualified REs<\/strong> and non-institutional DPs as <strong>Mid-size REs<\/strong>.<\/p>\n\n<p>The applicable controls are important because DPs handle identity records, investor instructions, account access and high-value securities transactions. Relevant areas include:<\/p>\n\n<ul><li>Strong authentication and <a href=\"https:\/\/www.osto.one\/resources\/glossary\/mfa\/\">MFA<\/a> for sensitive and privileged access.<\/li><li>Asset, account and access-right inventories with regular review.<\/li><li>Application and <a href=\"https:\/\/www.osto.one\/resources\/glossary\/api-security\/\">API security<\/a> for investor-facing services and integrations.<\/li><li>Continuous monitoring through an appropriate SOC model and <a href=\"https:\/\/www.osto.one\/resources\/glossary\/siem\/\">SIEM<\/a>.<\/li><li>Vulnerability management and periodic <a href=\"https:\/\/www.osto.one\/resources\/glossary\/vapt\/\">VAPT<\/a>.<\/li><li>Incident response, evidence retention and reporting through the prescribed routes.<\/li><\/ul>\n\n<p>DPs submit applicable CSCRF compliance, VAPT and cyber-audit reports through the depository. The depth and periodicity follow the entity\u2019s CSCRF category and the specific requirement.<\/p>\n\n<div class=\"call ap\"><p class=\"label\">Investor access makes identity security critical<\/p><p>A compromised DP account can enable unauthorised instructions or expose sensitive investor information. Authentication, session security, alerting and transaction monitoring should work together rather than as separate controls.<\/p><\/div>\n\n<h2 id=\"osto\" class=\"s\">How Osto supports Depository Participants<\/h2>\n<p>Osto helps DPs bring application, API, cloud, endpoint, identity and network security into one operating view. WAF, API protection, CSPM, EDR, DLP, SIEM and VAPT generate evidence while protecting the systems used to serve investors.<\/p>\n\n<p>That evidence can be connected to CSCRF requirements, findings, remediation owners and closure records. This makes it easier to demonstrate that controls are operating without reconstructing the audit trail from multiple security vendors.<\/p>\n\n<p class=\"related\"><strong>Primary sources:<\/strong> <a href=\"https:\/\/investor.sebi.gov.in\/Investor-charter.html\" target=\"_blank\" rel=\"noopener\">SEBI Investor Charter for Depositories and DPs<\/a> and <a href=\"https:\/\/www.sebi.gov.in\/legal\/circulars\/aug-2024\/cybersecurity-and-cyber-resilience-framework-cscrf-for-sebi-regulated-entities-res-_85964.html\" target=\"_blank\" rel=\"noopener\">SEBI CSCRF<\/a>. This glossary is an operational overview, not legal advice.<\/p>\n\n<div style=\"background:#1C267A;border-radius:22px;padding:36px 32px;margin:36px 0 12px;box-shadow:0 10px 26px rgba(28,38,122,.22);text-align:center\"><p style=\"display:inline-block;background:rgba(255,255,255,.16);color:#fff;font:700 11px Inter,sans-serif;letter-spacing:1.2px;text-transform:uppercase;padding:6px 14px;border-radius:20px;margin:0 0 15px\">Security for SEBI REs<\/p><p style=\"color:#fff;font:700 25px\/1.3 Inter,sans-serif;margin:0 0 11px\">Protect investor-facing systems and prove it<\/p><p style=\"color:#dfe2f4;font:16px\/1.6 Inter,sans-serif;margin:0 auto 24px;max-width:530px\">Connect application, API, endpoint, cloud and monitoring controls with audit-ready evidence.<\/p><a href=\"https:\/\/www.osto.one\/contact\" style=\"display:inline-block;background:#fff;color:#1c267a;font:700 16px Inter,sans-serif;text-decoration:none;padding:13px 28px;border-radius:12px\" target=\"_blank\" rel=\"noopener\">Get a free security assessment<\/a><\/div>\n\n<h2 id=\"faq\">Frequently asked questions<\/h2>\n<details><summary>What is a Depository Participant?<\/summary><p>A DP is a registered agent of a depository that provides demat-account and securities-depository services directly to investors.<\/p><\/details>\n<details><summary>Is a DP the same as a depository?<\/summary><p>No. NSDL and CDSL are depositories that maintain central electronic records. A DP is the intermediary through which an investor accesses their services.<\/p><\/details>\n<details><summary>Is a Depository Participant the same as a stock broker?<\/summary><p>No. A broker executes trades, while a DP services the demat account and securities movements. One organisation may hold both registrations.<\/p><\/details>\n<details><summary>Who can become a Depository Participant?<\/summary><p>Eligible entities can include banks, financial institutions, custodians, stock brokers, clearing organisations, qualifying NBFCs and RTAs, subject to applicable SEBI and depository requirements.<\/p><\/details>\n<details><summary>Are Depository Participants covered by CSCRF?<\/summary><p>Yes. Institutional DPs are categorised as Qualified REs and non-institutional DPs as Mid-size REs under the framework.<\/p><\/details>\n<details><summary>Where does a DP submit CSCRF reports?<\/summary><p>Depository Participants submit the applicable compliance, VAPT and cyber-audit reports through their depositories.<\/p><\/details>\n\n<p class=\"related\"><strong>Continue reading:<\/strong> <a href=\"https:\/\/www.osto.one\/resources\/glossary\/mfa\/\">MFA<\/a> \u00b7 <a href=\"https:\/\/www.osto.one\/resources\/glossary\/api-security\/\">API Security<\/a> \u00b7 <a href=\"https:\/\/www.osto.one\/resources\/glossary\/siem\/\">SIEM<\/a> \u00b7 <a href=\"https:\/\/www.osto.one\/resources\/glossary\/vapt\/\">VAPT<\/a> \u00b7 <a href=\"https:\/\/www.osto.one\/resources\/glossary\/risk-assessment\/\">Risk Assessment<\/a><\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>A Depository Participant is the investor-facing agent of a depository, providing access to demat accounts and services for holding and\u2026<\/p>\n","protected":false},"author":8,"featured_media":1030,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[180],"tags":[478,477,479],"class_list":["post-1029","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-glossary","tag-depository-participant","tag-depository-participant-meaning","tag-dp-in-share-market"],"_links":{"self":[{"href":"https:\/\/www.osto.one\/resources\/wp-json\/wp\/v2\/posts\/1029","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.osto.one\/resources\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.osto.one\/resources\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.osto.one\/resources\/wp-json\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"https:\/\/www.osto.one\/resources\/wp-json\/wp\/v2\/comments?post=1029"}],"version-history":[{"count":1,"href":"https:\/\/www.osto.one\/resources\/wp-json\/wp\/v2\/posts\/1029\/revisions"}],"predecessor-version":[{"id":1031,"href":"https:\/\/www.osto.one\/resources\/wp-json\/wp\/v2\/posts\/1029\/revisions\/1031"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.osto.one\/resources\/wp-json\/wp\/v2\/media\/1030"}],"wp:attachment":[{"href":"https:\/\/www.osto.one\/resources\/wp-json\/wp\/v2\/media?parent=1029"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.osto.one\/resources\/wp-json\/wp\/v2\/categories?post=1029"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.osto.one\/resources\/wp-json\/wp\/v2\/tags?post=1029"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}