Entities in Dematerialization
Once the Client/investor wants to deliver goods on futures exchange S/he will come across various entities in the process, as shown in the chart above. The Depository Participants (DP) are market intermediaries between the client and National Securities Depository Ltd (NSDL). DP can be organisations involved in the business of providing financial services like banks, brokers, custodians, financial institutions etc. NSDL handles most of the securities and commodities held and settled in dematerialised form in the Indian market. Registrar & Transfer Agents (R&T) is a mean of continuous electronic communication between NSDL and issuer. Registrar & Transfer Agents control the number of commodities in demat form on a daily basis and daily reconciliation between NSDL and client. Exchange accredited warehouse accepts goods for storage / delivery, assaying and information given to NSDL via R&T agents.
In the next chapter we will learn about the process flow in dematerialization.
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