Sebi plans for one-time registration system for DPs

NEW DELHI: Seeking to simplify procedural requirements, Sebi plans to put in place a one-time single registration process for depository participants to operate on both depositories.

The proposal, which would replace the current practice of requiring separate registration certificate to operate in on both depositories ( CDSL and NSDL), would be discussed in Sebi's board meeting on November 19, Wednesday, according to official sources.

The new system would ensure cost efficiency, avoidance of multiple due diligence process and prevent duplication of registration process.

Under the new norms, depository participants (DP) would be required to have only single certificate of registration issued by the Securities and Exchange Board of India (Sebi).

A unique registration number without indicating the name of the depository on the registration certificate would be issued to the depository participants. In case the DP wishes to act as participant with other depository, the same would be processed by the other depository under intimation to Sebi.

In October, Sebi had notified new norms that will require stock brokers and clearing entities to have one-time single registration process for operating across different bourses.