CDSL Demat Account| Charges and Steps to Open CDSL Demat Account in India

You’ve likely heard that a demat account is essential for trading in the Indian stock market. But did you know there are two types: CDSL demat account and NSDL demat account? What are these, and how do you choose which one is better for you? What are the benefits of CDSL demat account? 

Let’s find out and also explore the process involved along with the CDSL demat account charges.

Demat Account for Investors

SEBI requires trades in all listed securities to be settled in demat mode. Thus making a demat account mandatory to begin trading in India.

Share Depositories in India

Central Depositories Services India Ltd. (CDSL) and National Securities Depository Ltd. (NSDL) are government-registered share depositories in India. They hold shares in electronic form, similar to how banks hold cash and fixed deposits. 

These share depositories store your shares in a dematerialised form.

Now, how Do NSDL and CDSL Link with Demat Accounts?

When you open a demat account, you do it through a Depository Participant (DP).

The DP connects your account to either NSDL or CDSL. Your shares are then held in an electronic form by NSDL or CDSL.

Choosing Between NSDL Demat Account and CDSL Demat Account

Both NSDL demat accounts and CDSL demat accounts offer similar services:

• Holding your shares safely
• Enabling smooth transactions
• Providing regular updates.

Difference Between NSDL and CDSL for Your Demat Account

Here are the key distinctions:

• Establishment:
  • NSDL was established in 1996, making it the older of the two.
  • CDSL was established in 1999.
• Demat Account Number Format:
  • CDSL Demat accounts have a 16-digit numeric format.
  • NSDL Demat accounts start with ‘IN’ followed by a 14-digit numeric code.
• Number of Depository Participants:
  • CDSL has more registered Depository Participants (DPs) compared to NSDL.
    

As of April 30th, 2024, CDSL has 11,83,91,409 investor accounts as compared to 3,60,57,704 in NSDL

Both CDSL and NSDL are regulated by the Securities and Exchange Board of India (SEBI)/

The choice usually depends on your personal preference.

CDSL Demat Account

A CDSL demat account is a digital storage space for your investments in the stock market, managed by Central Depository Services Limited (CDSL).

A CDSL Demat account lets investors hold and manage securities such as shares, bonds, and mutual funds electronically.

You can open a CDSL Demat account through a registered Depository Participant (DP), who acts as a link between the investor and the depository.

Key Facts and Figures About CDSL Demat Accounts

Category	CDSL
Investor Accounts (excluding closed accounts(	11,83,91,409
Depository Participants	583
Number of Securities in Demat Custody	6,42,054 Mn
Value of Securities in Demat Custody	5,77,96,491 Mn

Data: As of 30-Apr-2024.

Six Key Things Investors Must Know About a CDSL Demat Account

If you are planning to open a CDSL demat account, here are a few things you must know:

1. The unique centralized database of CDSL allows Depository Participants (DPs) to debit and credit securities instantly to the Beneficial Owner’s (BO) account.
2. CDSL demat account number is a unique 16-digit numeric identifier assigned to you when you open a Demat account.
3. CDSL offers a settlement facility that allows securities sold or purchased through any broker on BSE/NSE. These are directly debited or credited in the BO’s account without routing through the broker’s pool account.
4. The cost for settlement of securities through CDSL is generally lower, making it a cost-effective option for investors.
5. You can keep a check on your holdings and transaction status through CDSL’s internet-based facility, ‘easiest’. 
6. Investors must provide six mandatory KYC attributes—Name, PAN, Address, Mobile Number, Email ID, and Income Range.

These features make a CDSL demat account a secure, efficient, and user-friendly option for managing securities.

Now comes the most important question.

Can a demat account be opened directly with CDSL?

No, you cannot directly open a CDSL demat account. You can only open a demat account through a Depository Participant (DP) of CDSL.

But how do you choose a DP that allows you to open a CDSL demat account? You must compare the CDSL demat account charges.

CDSL Demat Account Charges

The charges for a CDSL Demat account can vary depending on the Depository Participant (DP) you choose.

• Account Opening Fee: Some DPs may charge a one-time fee for opening a Demat account, while others may offer it for free.

Open a free CDSL demat account now!

• Annual Maintenance Fee (AMC): This recurring charge maintains your Demat account.
• Transaction Charges: DPs may charge a fee for each transaction made within your Demat account, such as buying or selling shares.
• Dematerialisation and Rematerialization Fees: These are charges for converting physical shares into electronic form and vice versa.
  

You must always read the terms and conditions carefully before opening an online demat account.

CDSLs Easiest Facility

To help CDSL demat account holders adjust to the faster settlement cycle, CDSL introduced Easiest, its Internet-enabled service. It allows demat account holders to manage their securities anytime, anywhere, in a secure environment, making it efficient and convenient.

Choosing a DP For Your CDSL Demat Account

You must keep these points in mind:

1. You must choose a DP known after researching about its services, offerings and charges.
2. Compare the brokerage fees and other charges of different DPs to find the most affordable option.
3. Ensure the DP provides the services you need, like online trading platforms, research tools, and customer support.

Always do thorough research and read reviews before making your decision. Pick a DP that fits your investment goals and preferences.

How to Unfreeze Demat Account CDSL

Here is the simple process of Unfreezing Demat Accounts

1. Approach the Depository Participant (DP): If a Beneficial Owner (BO) wants to unfreeze their demat account, they should contact their DP.
2. Verify KYC Status: The DP must check the KYC status of the BO’s PAN on the KRA system. 

This applies to all eligible joint holders as well.

3. Ensure KRA Validation: Confirm that the KYC record is validated by the KRA.
4. Remove the Freeze: Once verification is successful, the DP can unfreeze the demat account. 

DPs may also unfreeze the account on their own (suo-moto) after the necessary verification.

Opening a CDSL Demat Account with Shoonya

Shoonya offers a free CDSL demat account with no annual charges.

You can invest in all market segments, including stocks, bonds, mutual funds, ETFs, etc, across all the major stock exchanges in India.

Start Now!

FAQs|CDSL Demat Account

Source- cdslindia.com, cdslindia.com

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Disclaimer: Investments in the securities market are subject to market risks; read all the related documents carefully before investing.