Eligibility

In terms of the Depositories Act, 1996 and SEBI (Depositories & Participants) Regulations,1996, only the following entities are eligible to become a Depository Participant:

Public Financial Institution
Banks including Foreign Banks
State Financial Corporation
An Institution engaged in providing financial services promoted by above mentioned jointly and severally.
Custodian of Securities

Clearing Corporation or Clearing House of a Stock Exchange
Stock Broker
Non Banking Financial Company
Registrar & Transfer Agents

Threshold criteria for admission as a DP of CDSL

Fulfillment of eligibility criteria laid down under Regulation 19, sub regulation (a) to (d) of the SEBI (Depositories and Participants) Regulations, 1996 and the admission criteria as enumerated in CDSL Bye-Law 5.2.
a) The minimum net worth requirement for a stock broker to become CDSL DP is 2 crores (INR). b) A stock broker having net worth of not less than 1 crore (INR) may be admitted as CDSL DP under category 'Limited Depository Participant' subject to condition that they will increase the networth to atleast 2 crores (INR) so as to be at par with existing stock broker DPs in terms of networth requirement.Till such time the DP increases the networth to atleast 2 crores (INR) the DP under 'Limited DP' category will be permitted to open only upto 5000 accounts. Such networth is computed in the manner specified in the operating instructions issued by CDSL from time to time.
The application which is complete in all respects and satisfying the abovementioned threshold criteria shall be considered by the Membership Committee of CDSL on its merits.

Admission Procedure

Procedure to join CDSL as a Depository Participant(DP)

In the demat form transfer of securities takes place at CDSL and if the entire issue of a security is held in demat form, the issuer can save considerable time and money being incurred on its share department / RTA.
Dematted securities are not subject to loss, theft, mutilation or misuse by faking or forging certificates, thereby saving companies from lengthy correspondence, litigation and complaint handling. It will therefore eliminate instances of bad delivery.
All non-cash corporate actions such as rights, bonus, subdivision of holdings, conversion of securities, issuing securities on mergers/amalgamations and in initial public offerings (IPO) can be handled in demat form without any hassles in the shortest possible time and at very low cost.
With the CDSL's centralised database, the issuer can get upto-the-moment information on any changes in its holding pattern of a security. Thus, the company effectively monitors the change in holding and is alert to any undue threat.

Procedure to keep SEBI Registration in force

The DP to keep the SEBI Registration in force shall pay the SEBI registration fees for every 5 years from the 6th year of the date of grant of certificate of registration along with the documents as mentioned below and CDSL processing fees of Rs. 20,000/- (plus taxes as applicable). The documents and payment should be submitted to CDSL three months prior to the expiry of the block for which the SEBI registration fees has been paid.

Documents to be submitted:

Copy of SEBI Registration Certificate

Hardware and Software Requirements

Procedure to join CDSL as a Depository Participant(DP)

Hardware Requirement

Intel Core i7

6 GB RAM

600 GB or higher capacity Hard Disk Drive

AGP Display Card

15" SVGA Color Monitor / TFT

104 keyboard, Mouse

Serial / Parallel / USB ports

Software Requirement

Operating System: Windows 7.0 or above

SQL Server Standard Edition

Antivirus software (recommended - McAfee)

Acrobat Reader (Version 7 and above)

Procedure to join CDSL as a Depository Participant(DP)

Connectivity Requirements

As per SEBI guidelines, there should be continuous mode of connectivity between CDSL and the DP. Hence, CDSL has chosen Local leased line / MPLS leased line as the mode of connectivity between the Central Depository Accounting System (CDAS) and the users. The user can also user their own Internet connectivity to access CDAS.

In case the applicant wishes to obtain leased line connectivity with CDSL, kindly download the Connectivity form and return the same duly completed to CDSL along with advance payment of Rs. 1,00,000/-, favouring CDSL. This advance amount will be adjusted against the first invoice raised by CDSL after commissioning the connectivity, against the applicable annual charges of the applied mode of connectivity.

Please Click here for Tarrif Details

Setup & Running Cost

Particulars	Cost	Payable to
Indicative Hardware Cost
For Single user setup	57,500 (INR)	Vendor
For Multi-user setup(Server + 1 node)	1,77,500 (INR)	Vendor
Software
License fees	NIL	---
License fee per additional user	NIL	---
SEBI Fees
Application Fee	15,000 (INR)	SEBI(Through CDSL)
Registration Fees	2,00,000 (INR)	SEBI(Through CDSL)
Annual Fees(1,000 (INR) p.a.)	5,000 (INR) for 5 years	SEBI(Through CDSL)
Entry Fee
Application Processing Fee	20,000 (INR)	CDSL
Training Charges (for two persons)	10,000 (INR)	CDSL
Interest free, Refundable Security Deposit	5,00,000 (INR)	CDSL
Recurring Charges per annum
Software Annual Maintenance Charges	40,000 (INR)for the main location 10,000 (INR) per additional location	CDSL
Insurance Premium*	25,500 (INR) p.a.	CDSL
Connectivity charges	Click here for Connectivity charges	CDSL
One time Charges
Registration fees for internet facility: 'easiest'	50,000 (INR)	CDSL

Note:

* Insurance Charges will be pro-rated from the date of receipt of SEBI registration.Software charges will be pro-rated monthly.for subsequent years the aforementioned charges is payable at the beginning of the year.

Service tax at applicable rates will be charged.