Demat Account related FAQs

Differentiate between NSDL & CDSL?

NSDL stands for National Securities Depository Limited and deals with 'National Stock Exchange'. CDSL stands for Central Depository Securities Limited, which works with Bombay Stock Exchange.

NSDL, India's oldest and largest electronic securities depository, was established in 1996. It is based in Mumbai (Maharashtra). It is India's first electronic depository to offer settlement and trading in securities in demat or electronic form. NSDL has approximately 1.7 million investor accounts and 30500 DP service centres covering around 2000 cities.

CDSL, another Indian electronic depository for securities, was established in 1999. It is also located in Mumbai, Maharashtra. It is India's second-largest securities depository and allows book-entry transfers. CDSL has around 1.6 million investor accounts, managed by 19000 DP services centers.

These are registered depositories that are managed by the government and can hold securities such as Stocks, Shares or money in electronic form.

Comparison of NSDL and CDSL Key Differences

There are key differences between NSDL (and CDSL)





National Securities Depository Limited

Limited Central Depository Securities





Mumbai, India.

Mumbai, India.


IDBI Bank, UTI, etc.


Operating Market

National Stock Exchange (NSE).

Bombay Stock Exchange, (BSE).

# Demat Account

1.7 Crores Approx

1.6 Crores Approx

Comparing NSDL to CDSL shows that there are not many differences between CDSL and NSDL demat accounts. Both NSDL as well as CDSL are regularly maintained by the Indian Government and offer customers the same services.

Investors don't need to worry about where your account is stored.

Brokers will often highlight the benefits of having an account with NSDL or CDSL as a premium benefit. This is a marketing trick to get you to open an account.

Is it necessary to have an demat account to apply in an IPO?

How securities can be transferred from one account to another?

Can I apply in an IPO if I don't have a Demat account?

On Demat account how much interest is given?

What maintenance charges are there for a demat account? Is there any processing fees or hidden charges on transactions I make on a demat account?

If I don't hold any share in my demat account, do I need to pay any annual maintenance charge

Can a person keep more than one demat account with same name?

Can a minor open a demat account?

Diffrenciate between Demat account number and Trading account number?

What are NSDL & CDSL?

Is a minor eligible to open a trading account?

Define Depository.

Define Depository Participants.

What does Dematerialisation process mean?

What are the benefits of holding shares in a demat account? Is it mandatory for all investors to open a Demat account in order to trade on the stock market?

How many demat account can a trader open?

In Demat account is there any nomination facility?

For any update in my personal details do I need to contact all companies?

What do I need to do with transaction statement, If I don't do trade on a regular basis?

How can I get help if I have any issue with my NSDL Demat account?