Millions of securities market investors’ shares are stored electronically by share depositories NSDL and CDSL. Share depositories registered with the govt. and established by the market regulator SEBI include NSDL, or National Securities Depositories Limited, and CDSL, or Central Depositories Services Limited.
The National stock market and also the Bombay exchange, India’s two most vital stock exchanges, are represented by both depositories.
The share depository for the NSE is NSDL, whereas the share depository for the BSE is CDSL. Although the 2 depositories are employed by separate exchanges, the exchanges are liberated to use either of the depositories for the trading and settlement of shares and other assets.
Format for demat accounts: CDSL demat accounts have 16 numerical digits, but NSDL demat accounts have 14 numerical digits and start with “IN.”
While CDSL was founded in 1999, NSDL was established in 1996. CDSL is marketed by the BSE while NSDL is promoted by IDBI Bank and NSE.
A CDSL demat account’s advantages
- When we open a demat account with a depository participant, the depository CDSL won’t charge us anything.
- The depository launched CDSL’s easi, or electronic access to securities information, to help investors gain access to their demat holdings in an electronic format whenever and wherever they choose.
On the premise of fees and charges, services, and other factors including simply doing business, a stockbroking firm often chooses between the 2 depositories for registration. If we’re an investor, we’ll ask our DP if they’re registered with the NSDL or CDSL. some stockbrokers still have accounts with both depositories.
Having a Demat account with a DP registered with either NSDL or CDSL has no significant impact on the services provided to investors. Both companies offer comparable trading and investment services and are governed by SEBI. The operational marketplaces of the 2 depositories are the sole distinction. While CDSL’s primary market is that of the Bombay exchange, NSDL’s principal functioning market is the National securities market (NSE) (BSE).