What Is an NSDL Demat Account?


 

The advent of dematerialisation/online trading brought several benefits, including transparency in trading and an opportunity of grabbing available market opportunities quickly. To capitalise on the stock market opportunities, an individual requires a demat account and trading account. Demat account is the entry pass to the stock market. Demat services, including demat accounts, are offered by two Depositories in India -  

  1. CDSL - Central Depository Services (India) Limited

  2. NSDL - National Securities Depository Limited 

Both depositories facilitate the online trading system through their demat services. However, these organisations do not serve investors directly. There are registered agents of these Depositories, called depository participants (DPs).

When you open a demat account with an NSDL registered stockbroker, it is called an NSDL demat account. You will get demat services from the NSDL through its registered stockbroker. 

Both depositories facilitate online stock trading, focus on providing convenient demat services to investors, and participate in checking or resolving the issues related to trades. It can be demat account security, delayed deliveries, settlement cycles, etc.  

The stockbroker registered with the NSDL will levy the demat transaction charges as per NSDL terms. However, demat account charges with the two Depositories do not differ much. 

Let us elaborate on NSDL demat account and other demat services with NSDL registered stockbrokers.

Read also:- An Introduction To The Indian Stock Market

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