The major intermediaries of Depository System are:
• Depository Participant (DP)
• Beneficial Owner (BO)
Depository is the apex entity which maintains records of shares in electronic form of all companies. In India, there are two depositories namely, NSDL and CDSL.
Depository Participant (DP)
DP is the link between the Depository and the Shareholder. A DP can be associated with either of NSDL or CDSL and in any case, would have a unique identification number viz. DP Id.
DP maintains the accounts of shareholders in electronic form and it can be a participant in either NSDL or CDSL or both. A DP is provided with a unique registration number called the DP ID.
Beneficial Owner (BO)
BO is the owner of shares in demat form.
Upon opening of a demat account with DP, the BO is given an account number called the Client ID. The combination of DP Id. and Client Id. nos. is a unique identification Id. of each holder of demat account.
Note: Shareholders need quote their DP ID/Client ID in all correspondence with the Company / R&TA.