The reason is clear. Most of the top brokers have survived the tough market on the back of holding on to their key high networth clients. These clients have seen immense value in trading in demat shares which has led the brokers to set up their own DP business to give them a better deal.

"We are looking at various ways in providing value addition to our clients who have stayed on with us. This is imperative. With not many DP facilities available here, it makes more sense to become a DP," says Sanjay Kaul, a leading broker and former vice-president of the Delhi Stock Exchange (DSE).

Incidentally, for a long time there were only two depository participants in Delhi, both of which were brokers. Considering that a broker would not like to hand over details of his client's holdings to his competitor,brokers were obviously reluctant to open depository accounts. This in turn led to a sense of opposition to the depository concept.

With Sebi making it mandatory for the investors to trade in certain stocks only in demat form, brokers were forced to open accounts. In the meantime, the Stock Holding Corporation of India Ltd (SHCIL) the country's largest custodian also opened its DP branch in the city. A few banks too subsequently, extended their operations to Delhi.

Says Ashok Agarwal, the leading broker in the city and president of DSE: "The depository is the best thing that could have happened. All the problems of fake/forged shares, bad deliveries, theft and loss of shares in transit are things of the past.

While the high networth individuals have liked the concept very much the smaller investors are yet to embrace it owing to cost implications and inadequate number of high quality DPs.'' In addition he said that "for a broker, the DP business synergies his operations and he is able to provide aone-stop-shop for clients. By becoming a DP we will be able to service clients better and also bring down the costs for them. Delhi brokers who have been forced to remain restricted to this city for business due to risk of dealing with unknown clients can now safely move in to new markets in northern-India."

Agarwal too says that the profile of his clients has remained the same and the aim to service them as well as possible. In a dull market like this, where retail investors are virtually absent, brokers at the Delhi Stock Exchange have been forced to rethink their plans in line with the trend in Mumbai realising fully well that failure to do so could lead them to fold up in the not so distant future.

About four of our members have already filed applications to become depository participants through either their broking outfit or a sister concern. Others are finalising their plans for the same.