The new norms would ensure cost efficiency, avoidance of multiple due diligence process and prevent duplication of registration process
New Delhi : Making procedural requirements simpler for brokers, Sebi put in place a new mechanism to allow one-time single registration for the depository participants.
So far, the depository participants (DPs) had to apply for separate registration certificate to operate on the nation’s two depositories — Central Depository Services India Ltd (CDSL) and National Securities Depository Ltd (NSDL). Brokers and some other entities need to register themselves as depository participants with either NSDL or CDSL to operate in the capital markets.
The new norms would help ensure cost efficiency, avoidance of multiple due diligence process and prevent duplication of registration process.
As per the new guidelines, DPs would have to apply to Sebi for “permanent registration” through any of the depositories in which it is acting as a participant. -PTI