Depository participant is an agent of the Depository (NSDL & CDSL), and traders and investors. Essentially, a depository participant means a place that resembles a bank that stores money and conducts transactions. Instead of money, a depository participant acts as a store of assets such as securities. With a DP or depository participant, you can open a Demat account and store securities and then trade with them as your account may be linked with your trading account. Serving as an agent of one or both the NSDL and CDSL, a depository participant helps you manage your assets efficiently.