Concept Depository Participants | CDSL - NSD

 Concept Depository Participants | CDSL - NSD

Concept of Participants

Concept: Depository:

·        A body corporate who maintains detail of securities, security holder, Security issuer etc.

·        In India there are two depositories

           CDSL :- Central depository services limited.     Company incorporated                       under companies Act. CDSL Stock is listed in Both NSE & BSE.

   

            NSDL :- National Securities Depository Limited.      Company                                    incorporated under companies Act.   Currently NSDL is not listed.

·        Agent of depository who deals as intermediary between Investor and depository.

·        For opening of demat account we have to approach “depository Participants”.

·    Following are some Depository Participants:

1.      HDFC Securities
2.      Share Khan.
3.     Motilal Oswal
4.     Zerodha etc.

 

Concept:    Broker

·       Agent of Exchange (i.e., NSE/BSE) is also Known as Broker. It acts as intermediary between Exchange and trader.

      Concept:  Demat Account 

·        Bank account in which we can hold securities in electronic form

         (i.e., Dematerialize form).

·        Depository Participant is authorised to open Demat Account.

        Concept: Trading Account

·        Broker is authorised to open trading account.

·        It provides facility to place order in exchange.

·        As per SCRA, 1956, a person can participate in trade/Exchange with the help of broker only.

         Note: For trading in equity segment, we must have trading and Demat account.

 

        Concept:  How to Open Demat and Trading Account

·        To open trading and demat Account we can approach any one of following broker/Depositary Participant.

 

                Services broker in Bank Categories

i)                   ICICI Securities

ii)                 HDFC Securities

                 Services broker other than Bank

iii)               Share Khan

iv)               Motilal Oswal

Discount broker

v)                 Zerodha

vi)               Up stock

 

·        To Select Broker and Depositary participant we have to analyses two things.

i)                   Software interface

ii)                 Brokerage fee.

         Documents required:

1.    Proof of Identity (POI) (eg:-Driving license)

2.    Address proof (POA) (eg:- Passport)

3.    Proof of Income (For trading in derivatives such as F&O) (eg:- Copy of ITR Acknowledgment)

4.     Proof of Bank Account ( Eg :- Cancelled Cheque)

5.    PAN Card

6.    1 to 3 passport size photographs