Custodians / Designated Depository Participants (DDPs)

A Custodian is a SEBI registered intermediary that holds the assets/securities of its clients in safe custody in fiduciary capacity and executes instructions of its clients with respect to their dealings in securities markets. A Designated Depository Participant (‘DDP’) is an activity authorised by SEBI to the Custodian to receive and process FPI registration applications and grant registration as an FPI, on behalf of SEBI. SEBI’s Regulations require that the DDP and the Custodian of an FPI are always the same. The Custodian, in their capacity as the Clearing Member of the Stock Exchanges, also clears and settles all the trades executed by the FPIs in the Indian securities market.