DEPOSITORY PARTICIPANT (DP)
CIn a strictly legal sense, a DP is an entity who is registered as such with SEBI under the provisions of the SEBI Act. As per the provisions of this Act, a DP can offer depository related services only after obtaining a certificate of registration from SEBI.
NSDL and CSDL are two depositories in India. The Demat account is the account which is used to store shares in electronic form.
National Securities Depository Limited (NSDL) as a joint venture between IDBI, UTI and the National Stock Exchange has set up the first depository.
The second depository has been set up by Central Depository Services Limited (CDSL), which was promoted by the Bombay Stock Exchange and Bank of India.
Both the depositories have a network of Depository Participants (DPs) who are electronically connected to the depository and serve as contact points with the investors.