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Zerodha CDSL DP code (IN-DP-431-2019)

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Zerodha Broking Limited is registered as a depository participant (DP) with Central Depository Services (India) Limited (CDSL) under DP code IN-DP-431-2019. This registration authorises Zerodha to open and maintain dematerialised securities accounts (demat accounts) for its clients and to interface with the CDSL depository infrastructure on their behalf. The DP registration is separate from and complementary to Zerodha’s SEBI stock broker registration (INZ000031633); the two licences together enable Zerodha to execute trades and hold the resulting securities positions for clients within a single integrated platform.

Regulatory framework for depository participants

The legal basis for depository participant registration in India is the Depositories Act, 1996, which established a statutory framework for the dematerialisation of securities. Under section 12 of the Depositories Act, only persons registered with SEBI under the Securities and Exchange Board of India (Depositories and Participants) Regulations may function as depository participants. SEBI originally notified the SEBI (Depositories and Participants) Regulations, 1996, and significantly overhauled them in 2018 to issue the SEBI (Depositories and Participants) Regulations, 2018, which are the currently operative regulations.

CDSL, incorporated in 1999, is one of two depositories licensed by SEBI to operate in India. The other is NSDL. CDSL holds securities in electronic form on behalf of its beneficial owners and maintains the official register of ownership for securities held in CDSL form. DPs such as Zerodha act as the retail interface between CDSL and the end investor, accepting account-opening requests, processing delivery instructions, and providing account statements.

Key statutes

Zerodha’s DP registration details

Zerodha received its CDSL DP code IN-DP-431-2019 in 2019, reflecting the expansion of its integrated brokerage-plus-custody offering. Prior to obtaining its own DP registration, clients of Zerodha held their securities through a third-party DP arrangement. The in-house CDSL DP registration brought custody services under Zerodha’s direct regulatory oversight and operational control, enabling tighter integration with the Kite trading platform and the Console portfolio tracker.

The registration number format IN-DP-431-2019 follows SEBI’s standard encoding: “IN” (India), “DP” (depository participant), “431” (sequential participant number assigned by CDSL), and “2019” (year of registration).

According to public SEBI and CDSL records as of mid-2026, Zerodha’s DP registration is current and in good standing, with no suspension or cancellation on record.

Services provided under the DP registration

As a CDSL DP, Zerodha offers the following services to its clients:

Demat account opening

Zerodha opens CDSL beneficiary owner (BO) accounts for its clients. Each BO account is identified by a 16-digit CDSL BO ID, the first eight digits of which represent Zerodha’s CDSL DP ID. The BO account serves as the electronic registry entry for a client’s securities holdings.

Securities holding and custody

Securities bought on stock exchanges are credited to the client’s BO account by the exchange’s clearing corporation (through the CDSL settlement infrastructure) on a T+1 basis for equity cash market transactions (following the move to T+1 settlement in 2023). Zerodha provides clients with a view of their holdings through the Console portfolio interface, which draws real-time data from the CDSL system via the DP’s API access.

Pledge and margin mechanisms

Under SEBI’s 2020 circular on pledging of client securities, clients can pledge their demat holdings as margin for trading in the derivatives segment. Zerodha facilitates this through CDSL’s electronic pledge mechanism (CDSL Margin Pledge), which requires the client to authorise the pledge via a TPIN-based or Aadhaar OTP-based consent process. The pledge is recorded at the depository level, giving the pledgee (the broker or clearing member) a lien over the securities without physical transfer of ownership.

Delivery Instruction Slip (DIS) and off-market transfers

Clients can instruct Zerodha to transfer securities to another BO account (for example, to another broker’s pool account or to a family member’s demat account) through off-market transfer instructions. Zerodha accepts these instructions through its online platform via the CDSL TPIN-based consent mechanism, replacing the physical DIS booklet that was previously standard practice. This electronic process reduces the risk of fraudulent off-market transfers.

Annual account statements

CDSL mandates that every DP provide its BO account holders with an annual statement of holdings and transactions. Zerodha fulfils this obligation through email delivery of annual consolidated account statements, which include all debit and credit entries in the BO account during the financial year, the closing balance as at 31 March, and a reconciliation with the client ledger.

Compliance obligations under the DP registration

Zerodha’s DP registration imposes a specific set of compliance obligations, distinct from those arising under its stock broker registration.

Account maintenance standards

Zerodha must maintain accurate BO account records and ensure that changes to client master data (name, address, bank account, nominee) are processed within the time limits prescribed by CDSL operational instructions. Changes must be supported by documentary evidence, and the instruction lifecycle must be logged for audit purposes.

Grievance redressal for DP services

Clients who have complaints relating specifically to demat account services (for example, a securities credit not appearing, or an incorrect debit) can raise them through Zerodha’s grievance redressal mechanism, through the CDSL web portal, or through SEBI SCORES. CDSL maintains its own investor grievance portal (igrams.cdsl.co.in) through which unresolved DP-level complaints can be escalated.

Internal audit

DPs are required to conduct quarterly internal audits of their DP operations, covering account opening documentation completeness, transaction processing accuracy, and compliance with SEBI’s circular on client securities. The audit report must be submitted to CDSL within the prescribed timeline.

Safeguarding client securities

SEBI’s regulations impose a strict obligation on DPs not to use client securities for any purpose other than what the client has authorised. Securities held in a client’s BO account may not be pledged, transferred, or encumbered by Zerodha on its own account. Any violation of this obligation exposes Zerodha to enforcement action by both SEBI and CDSL.

Client-facing implications

For Zerodha clients, the DP registration has several practical consequences:

  1. Integrated custody: Because Zerodha is its own DP, clients need not open a separate demat account with a third-party DP. The trading account and demat account are opened and operated as a unified service through the Zerodha platform.
  2. CDSL investor services portal access: Clients can independently verify their demat holdings, pledge status, and transaction history directly on mycdsl.in using their CDSL BO ID, providing a check on the information displayed by Zerodha’s own systems.
  3. DP charges: SEBI and CDSL prescribe certain DP charges (such as account maintenance charges and transaction-level debit charges) that brokers may pass on to clients. Zerodha publishes its DP charge schedule on its support documentation; clients should review this in conjunction with brokerage charges.
  4. Nomination and transmission: Demat account nominations and transmission of securities on death of the account holder are governed by the Depositories Act and SEBI’s regulations on nomination, rather than by broker-specific policies. Zerodha processes these requests in accordance with CDSL’s Operational Instructions.

Relationship with the SEBI stock broker registration

The DP registration and the stock broker registration serve complementary but distinct regulatory purposes. The stock broker registration (INZ000031633) authorises Zerodha to execute trades on stock exchanges as agent for its clients. The DP registration (IN-DP-431-2019) authorises Zerodha to hold the securities that result from those trades in electronic form at the depository. Together, the two registrations constitute the minimum regulatory infrastructure needed to offer a full-service retail trading and custody platform.

A client who opens a Kite trading account with Zerodha therefore enters into two distinct legal relationships simultaneously: a broker-client relationship governed by SEBI’s (Stock Brokers) Regulations and a DP-client (or beneficial owner-participant) relationship governed by the Depositories Act and the (Depositories and Participants) Regulations.

See also

References

  1. Depositories Act, 1996, statutory basis for depository operations and participant registration.
  2. SEBI (Depositories and Participants) Regulations, 2018, operative regulatory framework for DPs.
  3. SEBI Master Circular for Depositories and Depository Participants, 2023.
  4. CDSL Operational Instructions for Depository Participants (2023 edition).
  5. SEBI Circular on Pledging of Client Securities (SEBI/HO/MIRSD/DOP/CIR/P/2020/197).
  6. CDSL Intermediary Portal, Zerodha Broking Limited DP entry (cdslindia.com, accessed mid-2026).
  7. SEBI Annual Report 2022–23, Chapter on Depositories and Participants.

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The WebNotes Editorial Team covers Indian capital markets, payments infrastructure and retail investor procedures. Every article is fact-checked against primary sources, principally SEBI circulars and master directions, NPCI specifications and the official support documentation published by the intermediary in question. Drafts go through a second-pair-of-eyes review and a separate compliance read before publication, and revisions are tracked against the SEBI and NPCI rule changes referenced in the methodology section.

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