Depository Participant acts as a link between the Depository and the Investor. In other words, it is an agent of the depository.
DP is registered under the SEBI Act. It enjoys rights and obligations as specified under SEBI Regulations of 1996.
It is an intermediary appointed by Depository.
DP directly deals with customers and sends a statement of accounts periodically.
The DP has a unique number for identification.
Banks, Financial Institutions, Stock Brokers, etc. can function as Depository Participants.
Thus, it is rightly justified that DP is an important constituent of the Depository system.
