Know the Importance of Depository Participants in a Simplified Way

Feb-21-2023Blog by – Mr. Ashish AjmeraRead Time: 3 Min.Word Count: 522
18Know the Importance of Depository Participants in a Simplified Way

Have you ever thought about who takes the responsibility of managing your financial assets electronically? Who ensures that all transactions are executed smoothly? The answer is Depository Participant (DP).

Depositary participants are major players in the Indian securities market. They provide a wide range of services to retail and institutional investors. This blog will explain the role and importance of depositary participants in detail.

Meaning of DPs

Before talking about DPs, you should first know what a depository is. A depository is an institution that holds your financial assets such as equities, bonds, mutual funds and other securities. It works like a central bank which is responsible for the exchange and settlement of securities. 

There are two depositories in India - National Securities Depository Limited (NSDL) which works for National Stock Exchange (NSE) and Central Depository Securities Limited (CDSL) which works for the Bombay Stock Exchange (BSE). These institutions are regulated by the Securities and Exchange Board of India (SEBI). However, you cannot open an account directly with these depositories. This is where DPs come into the picture.

DPs are intermediaries between depositories and investors. They are the registered agents of depositaries. You need to open a demat account with a DP to buy and sell securities. Whenever a transaction occurs, the DP debits or credits the demat account. You have to pay charges or fees to the DP for services rendered to you.

Importance of DP

DPs ensure speed and transparency in the securities market. They also eliminate fraud by preventing bad delivery and fake certification issues. The importance of DPs in the securities market can be ascertained from the various functions they perform:

1. Demat Account Opening

DPs provide hassle-free assistance in opening an online demat account for security trading. Depository services providers such as Ajmera x-change even offer a free account opening facility.

2. Dematerialisation and Rematerialisation of Securities

DPs help you with the conversion of physical securities into an electronic form (dematerialisation). You can even request the DPs to convert electronic securities into a physical form (rematerialisation).

3. Trade Settlement

DPs ensure timely receipt and delivery of securities during trade settlement. You don’t have to micromanage the settlement process.

4. Transfer of Securities

If you want to sell the securities DPs, do the transfer of ownership to another investor account on your behalf. 

In case you have pledged the shares as collateral for availing a loan and default on the payment, then DPs transfer the shares to the lender’s account. However, if you fulfil the obligation, then DPs can also help you to unpledge the pledged securities.

5. Miscellaneous Functions

  • Freezing of demat account

  • Transfer of securities to the heir on the death of a shareholder

  • Refund and remission of dividends


DPs hold a crucial and responsible position in the Indian securities market. That’s why we at Ajmera x-change take our role as a depository and financial service provider very seriously. We have an effective and fully-developed depository system to enable hassle-free transactions and processes for you. We guide you at every step of your investor relationship with us. 

Get in touch with us to know more.

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Details of Contact Person Address Contact No. Email Id Working Hours
Client Servicing / Customer care Suresh Munge 63-67, Ajmera House,
4th Floor, Off K.H.Ajmera Chowk,
Pathakwadi, Mumbai – 400 002.
022-40628913 10:00 am to 6:00 pm
Head of Client Servicing Mr. Dhanesh Bendre's 63-67, Ajmera House,
4th Floor, Off K.H.Ajmera Chowk,
Pathakwadi, Mumbai – 400 002.
022-40628915 10:00 am to 6:00 pm
Compliance Officer Ashish Ajmera 63-67, Ajmera House,
4th Floor, Off K.H.Ajmera Chowk,
Pathakwadi, Mumbai – 400 002.
022-40628888 10:00 am to 6:00 pm
CEO / Whole Time Director Ashish Ajmera 63-67, Ajmera House,
4th Floor, Off K.H.Ajmera Chowk,
Pathakwadi, Mumbai – 400 002.
022-40628888 10:00 am to 6:00 pm

In absence of response/ complaint not addressed to your satisfaction, you may lodge a complaint with CDSL at or SEBI at Please quote your Complaint Ref No. while raising your complaint at SEBI SCORES/ Depository portal.

Group Companies Members of BSE, NSE, MCX, MSEIL, CDSL, Broking Services, Depository Services
BSE Clearing No.: 911 | NSE Clearing No.: 11858 | MCX Clearing No.: 10665 | MSEIL Clearing No.: 11400 | CDSL DP ID: 30300 | SEBI Regn. No.: IN-DP-715-2022 | SEBI Reg No.: INZ000177531 (Cash/F&O/CDs/MCX)

Attention Investors
1. Stock Brokers can accept securities as margin from clients only by way of pledge in the depository system w.e.f. September 1, 2020.
2. Update your mobile number & email Id with your stock broker/depository participant and receive OTP directly from depository on your email id and/or mobile number to create pledge.
3. Pay 20% upfront margin of the transaction value to trade in cash market segment.
4. Investors may please refer to the Exchange's Frequently Asked Questions (FAQs) issued vide circular reference NSE/INSP/45191 dated July 31, 2020 and NSE/INSP/45534 and BSE vide notice no. 20200731-7 dated July 31, 2020 and 20200831-45 dated August 31, 2020 dated August 31, 2020 and other guidelines issued from time to time in this regard
5. Check your Securities /MF/ Bonds in the consolidated account statement issued by NSDL/CDSL every month.
.......... Issued in the interest of Investors

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