ELIGIBILITY CRITERIA OF DESIGNATED DEPOSITORY PARTICIPANT :

– The SEBI shall not consider an application for the grant of approval as designated depository participant unless the applicant satisfies the following conditions, namely:

– the applicant is a participant registered with SEBI.

– the applicant is a custodian of securities registered with SEBI.

– the applicant is an Authorized Dealer Category-1 bank authorized by RBI;

– the applicant has multinational presence either through its branches or through agency relationships with intermediaries regulated in their respective home jurisdictions;

– the applicant has systems and procedures to comply with the requirements of Financial Action Task Force Standards, Prevention of Money Laundering Act, 2002, Rules prescribed thereunder and the circulars issued from time to time by SEBI.

– the applicant is a fit and proper person based on the criteria specified in Schedule II of the SEBI (Intermediaries) Regulations, 2008; and

– any other criteria specified by SEBI from time to time.

– SEBI may consider an application from a global bank, regulated in its home jurisdiction, for grant of approval to act as designated depository participant, if it is satisfied that it has sufficient experience in providing custodial services and the grant of such approval is in the interest of the development of the securities market.
However, such global bank shall be registered with SEBI as a participant, custodian of securities, and shall have tie up with Authorized Dealer Category-1 bank.

– After considering an application, SEBI may grant approval to the applicant, if it is satisfied that the applicant is eligible and fulfills the requirements including payment of fees.

– SEBI shall dispose of the application for grant of approval as soon as possible but not later than one month after receipt of application by SEBI or, after the information furnished, whichever is later.

– An application for grant of approval to act as designated depository participant which is not complete in all respects or is false or misleading in any material particular, shall be deemed to be deficient and shall be liable to be rejected by SEBI after giving a reasonable opportunity to remove the deficiency, within the time as specified by SEBI.