Capital, Commodity & Money Market Designated Depository Participant (DDP)
Designated Depository Participant (DDP)
A person can act as a DDP only after obtaining an approval of SEBI. However, an existing registered custodian of securities and qualified depository participant shall be deemed to have been granted approval as a DDP, subject to the payment of prescribed fees.
An application for approval to act as a DDP shall be made to SEBI through the depository in which the applicant is a participant accompanied by the prescribed fees.
No person shall act as DDP unless it has obtained the approval of the Board.
Provided that a custodian of securities which is registered with the Board as on the date of commencement of these regulations, shall be deemed to have been granted approval as DDP subject to the payment of fees as specified in Part B of Second Schedule.
Provided further that a qualified depository participant which has been granted approval by the Board prior to the commencement of these regulations, having opened qualified foreign investor account as on date of notification of these regulations, shall be deemed to have been granted approval as DDP subject to the payment of fees as specified in Part B of Second Schedule.
A complete video lecture on DDP is available CS Professional Course Online.
Eligibility criteria for Designated Depository Participant (DDP)
SEBI shall grant an approval to a person to act as DDP subject to satisfaction of the following conditions:
- The applicant is a participant and custodian registered with the SEBI.
- The applicant is an Authorized Dealer Category-1 bank authorized by the Reserve Bank of India.
- The applicant has a multinational presence either through its branches or through agency relationships with intermediaries regulated in their respective home jurisdictions.
- The applicant has systems and procedures to comply with the requirements of Financial Action Task Force Standards, Prevention of Money Laundering Act, 2002, Rules prescribed thereunder and the circulars issued from time to time by the Board.
- The applicant is a fit and proper person based on the criteria specified in Schedule II of the Securities and Exchange Board of India (Intermediaries) Regulations, 2008, and
- Any other criteria specified by the Board from time to time.
A Certificate of Registration (COR) granted to a DDP shall be permanent unless suspended or cancelled by SEBI or surrendered by the DDP.
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