PROJECT REPORT ON

“Functions Of Depository Participant’’

IN PARTIAL FULFILLMENT OF THE REQUIREMENT

FOR THE COURSE

POST GRADUATE DIPLOMA IN BUSINESS MANAGEMENT

SUBMITTED BY
ROLL NO: 17

BATCH: 2008-2010

SPECIALISATION: FINANCE

UNDER THE GUIDANCE OF

PROF. -T.M.C Vasudevan

MAHATMA GANDHI MISSION’S

INSTITUTE OF BUSINESS MANAGEMENT

KAMOTHE, NAVI-MUMBAI
 ACKNOWLEDGEMENT

At the outset it is our duty to acknowledge with gratitude the generous help
that we have received from the director general MGM IMSR Navi Mumbai and
the Head training and development ISE Mr.D.K.Gupta, for making available
the opportunity to work on this project.

We express our deep sense of gratitude to Mr. Padiyar Manager- DP

Operations & Compliance Officer for CDSL & NSDL for providing full
cooperation and necessary help for completion of this project. Infact his
guidance and cooperative nature gave us great impetus to make this project
in presentable form.

We are sincerely thankful to the guidance and help provided by Mr. Padiyar
our project coordinator. without whose support we would have not been able
to complete this project. We are grateful to Mr. Prashant for his cooperation
in correction and collation of information and material required for
preparation of this gigantic task.

To Mr. Bhupen RMS, ISE. We owe a special debt of gratitude. We have had
the advantage of his critical advice from his profound knowledge. He has
indeed given practical operation knowledge of the software used for the
functional purpose of DP back office.

Our sincerely thanks to all the staff of ISE DP for the cooperation and help
provided to us.

Finally yet importantly we put across our indepthness to our parents ,friends
and each and every individual who has helped us in preparation of this
project.
 Executive Summary

With highly fluctuating stock markets, the number of demat accounts opened
has increased phenomenally. Demat services provide solutions to problems
faced by investors in dealing with securities. A depository is an organisation
where the securities of a shareholder or investor are held in the electronic
form at the request of the shareholder through the medium of a depository
participant.

A depository is akin to a bank. If an investor wants to use the services offered

by a depository, he has to open an account with the depository through a
depository participant, just like in case of a bank. The depository can legally
transfer beneficial ownership. The main objective of a depository is to
minimise the paper work involved with the ownership, trading and transfer of
securities.

A depository participant is a representative (agent) in the depository system.

It is similar to broker, who trades on behalf of investors in and outside the
stock exchanges. The depository participant maintains securities' account
balances and intimates to investors the status of holdings from time to time.
According to the Securities and Exchange Board of India (SEBI) guidelines,
financial institutions, banks, custodians, stockbrokers etc can become
participants in the depository.

This system of using the existing distribution channel (mainly constituting

DPs) helps the depository to reach a wide cross section of investors spread
across a large geographical area at a minimum cost. The admission of the
DPs involves a detailed evaluation by the depository of their capability to
meet with the strict service standards and a further evaluation and approval
from SEBI. Realizing the potential, all the custodians in India and a number of
banks, financial institutions and major brokers have already joined as DPs to
provide services in a number of cities.
SECTION
1
(PROCESS)
SECTION
2
(OPERATIONS)
SECTION
3
(PROJECT
EVALUATION)