What Do You Mean By NSDL Demat Account?


As an investor, you should be equipped with the concepts of online investing and trading in the stock market. One of these concepts is the depository system in India. The stock market allows the trade of securities in the dematerialized form only. Therefore, a Demat account is a mandatory account. Your Demat account safeguards your securities with a 'depository' authorized by the Government of India. They interact with investors and offer their Demat services through registered participants called Depository Participants (DPs). No individual can approach a depository directly to open a Demat account.

In India, two central depositories, National Securities Depository Ltd. (NSDL) and Central Depository Services Ltd. (CDSL) operate under the regulatory framework of the Securities Exchange Board of India (SEBI). They both provide the same Demat services. 

If your broker is offering Demat services of NSDL with registration, you will be an NSDL Demat account holder. You are a beneficiary owner of an NSDL Demat account. 

Stockbrokers or DPs can be registered with both depositories or any of these two depositories. Individuals can check with a broker whether they are registered with NSDL or CDSL. Know the depository with which your stockbroker is registered to ease the process of share transfer from one Demat account to another.

 

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