With the application of technology, the process of participating in the securities market in India has become extremely seamless. You can open a trading account and demat account online, add funds to the former, and start investing in various market-linked securities.
Due to the presence of various depository participants and stock brokers in the system, trained trading accounts and demat accounts are usually offered at competitive prices and with a host of features and benefits.
In this article, we shall discuss the key facts and features of demat accounts opened with the Central Depository Services Limited (CDSL).
What is a CDSL Demat Account?
A demat account is an electronic vault where your market-linked securities are stored post the settlement of transactions.
For instance, once you have placed an order for shares through your trading account, the order shall get matched and executed through a stock exchange, and the transaction shall be settled.
The requisite funds shall be debited from your trading account and the shares credited to the linked demat account (within T plus 1 working days).
Demat accounts in India can be opened with either the NSDL (National Securities Depository Limited) or the CDSL (Central Depository Services Limited). If you open a demat account with the CDSL through a registered CDSL depository participant, such an account is termed as a CDSL demat account.
Key Facts and Features of CDSL demat accounts
The Central Depository Services Limited or CDSL is one of India’s leading depositories and has been offering demat services since 1999. It is a listed company, and provides different types of demat accounts. Here are some key facts about CDSL demat accounts and the features they offer.
1. Cdsl Demat Accounts Can Be Opened Online
You can open a demat account with the CDSL online. In order to do so, you can visit the official website of the depository and select an authorised depository participant (DP, then proceed to complete the account application form online. As an alternative, you can research and find CDSL registered DPs, visit their official website, and open a demat account there.
2. A Demat Account Opened With Cdsl Has Sixteen Digits
When you open a demat account with the CDSL, you shall be issued a 16-digit demat account number. All demat account holders are referred to as Beneficiary Owners, and the CDSL acts as a custodian of their demat holdings.
3. Cdsl Demat Accounts Facilitate Diversified Investments
With your CDSL demat account and the linked trading account, you can invest in a wide array of assets, ranging from shares to bonds, mutual funds to debentures. Therefore, it is convenient to diversify your investment portfolio through one demat account.
4. Cdsl Has More Than 12 Crore Investor Accounts
Presently, CDSL has more than 12 crore investor accounts, and the number is on the rise. The total number of demat holdings in the aforementioned accounts is 7.03 lakh million.
5. Over 550 Depository Participants Are A Part Of Cdsl
CDSL has 572 registered depository participants which serve as a link between the depository and investors. You can choose a credible DP with a feasible demat account offering, and open a demat account with them.
6. There Are No Opening Charges For A Cdsl Demat Account
CDSL demat accounts carry no opening charges. Hence you can open a demat account with the central depository without any initial investment. It is also necessary to open a trading account in order to place buy and sell orders in the market.
7. Cdsl Demat Accounts Can Also Be Accessed Via Cdsl Easi
You can access your CDSL demat account through the official website or mobile application of the selected DP. There is also the option of using CDSL easi (electronic access to securities information) and accessing your demat account.
The Bottomline
You can open demat account with CDSL through a swift, cost savvy, and transparent online process. Based on your trading requirements, you can choose the type of demat account and trading account you wish to open. You must never share your trading account and demat account login information with anyone, and use only the official trading platform of your broker to access the accounts.
