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Depository Participants (DPs) are entities that are registered with the Securities and Exchange Board of India (SEBI) to hold securities in electronic form on behalf of investors. They function as intermediaries between investors and depositories and provide services such as account opening, dematerialization, rematerialization, pledge, and hypothecation of securities. DPs are crucial to the functioning of the Indian capital market as they provide a safe and efficient system for holding and transferring securities. Hence, option B is correct.
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