A DP (Depository Participant) is a SEBI-registered financial intermediary — typically your stockbroker or bank — that acts as an agent of a depository (CDSL or NSDL) and provides individual investors access to the depository's services. You open a demat account with a DP, not directly with the depository.
Who are DPs?
Common DPs in India include Zerodha, Groww, Upstox, Angel One, HDFC Securities, ICICI Direct, Kotak Securities, Axis Bank, and CDSL Ventures. Each DP is registered with one or both depositories.
What your DP does
- Holds your shares in electronic form (demat account)
- Processes DIS instructions for outgoing transfers
- Executes incoming credits when someone sends you shares
- Provides your CMR and BO ID
- Deducts stamp duty on off-market transfers
Why it matters for unlisted shares
Your DP is the operational layer for every unlisted-share transaction. The seller's DP processes the DIS, your DP credits the shares, and both DPs talk through the depository's settlement system. Choosing a DP with responsive support speeds up transfers, which are often time-sensitive.
Example: An unlisted-share transfer delayed because the seller's DP had a backlog of paper DIS submissions — switching to a DP with electronic DIS (CDSL easiest / NSDL speed-e) resolved future delays.