It summarizes the eligibility criteria for a Stockbroker who wants to act as a Participant of NSDL service or Depository Services.

1. JOINING NSDL AS - BROKER
Eligibility criteria to become a depository participant(DP)

2. Joining NSDL as - BROKER
Overview of NSDL/Depository System Importance
• Members of the stock exchanges are an important link between investors and the
depository system.
• Securities (bought to be or sold to be) are routed through the clearing member account.
• From the clearing members account it goes through the process of settlement in the
depository system.
• Therefore, to settle trades in dematerialized form, a stock exchange member must open
a clearing account with NSDL.
• For applicants who like to behave as Stock Broker or non-Banking Finance Companies(NBFC), the
net worth should be >=50Lacs. This is for granting a certificate of Registration to act as Depository
Participants.

3. Clearing Member Account
• Member brokers of those stock exchanges which have established electronic connectivity
with NSDL, need to open a clearing member account, with a DP of his choice, to clear
and settle trades in a demat form.
• This account is meant only for transfer shares to_and receive shares from the clearing
corporation/house and hence.
• The member broker does not have any ownership(beneficiary) rights over the shares
held in such an account.
Joining NSDL as - BROKER

4. Clearing Member accounts has three parts
1. Pool Account : Shares are received from selling client in the pool a/c and transfer to
buying client Is also done through the pool account.
2. Delivery Account : Shares are received from selling clients are moved from the pool
account to the clearing corporation/Broker_house through the delivery account.
3. Receipt Account : Shares are received in the pool account from the clearing
corporation/Broker_house through the receipt account.
Joining NSDL as - BROKER