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What is the differences between NSDL and CDSL?

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NSDL and CDSL

NSDL is a short form for National Securities Depository Limited which deals with 'National Stock Exchange' (NSE), whereas CDSL is the short form for Central Depository Securities Limited which works for Bombay Stock Exchange (BSE).

NSDL is the oldest and largest electronic depository of securities in India, which is incorporated in the year 1996 and based in Mumbai, Maharashtra. It is the first depository in India to offer trading and settlement of securities in electronic or demat form. NSDL is having around 1.7 crore investor account, 30,500 DP service centers covering approx 2000 cities.

CDSL is another electronic depository of securities in India, which is incorporated in the year 1999 and also based in Mumbai, Maharashtra. It is the second largest securities depository in India and facilitates a book-entry transfer. CDSL is having around 1.6 crore investor account managed by 19000 DP service centers.

Both are government registered depositories which are used to hold various securities like Stocks, Shares, money, property etc in an electronic format.

Key differences Between NSDL and CDSL (Comparison):

There are some key difference between NSDL and CDSL

 

NSDL

CDSL

Abbreviation

National Securities Depository Limited

Central Depository Securities Limited

Founded

1996

1999

Headquarters

Mumbai, India.

Mumbai, India.

Promoters

IDBI Bank, UTI, etc.

HDFC, SBI, BOI, BOB etc.

Operating Market

National Stock Exchange (NSE)

Bombay Stock Exchange (BSE)

# Demat Account

1.7 Crore Approx

1.6 Crore Approx

If we compare NSDL and CDSL, there is not much difference between the NSDL and CDSL demat account. Both NSDL and CDSL are regularized by Indian Government and offers same facilities to customers.

Hence, being an investor there is no reason to think much about which repository your account is registered to.

Though some of the brokers highlight the point of opening an account with either CDSL or NSDL as a premium benefit. In reality, that is only a marketing trick to convince you to open an account with them.

answered


2 Comments

2. PAPU  Jul 12, 2020 9:02:08 PM I Like It. | Report Abuse Reply
Its really help me to understand about NSDL & CDSL
1. Devendra R Solanki  Jan 3, 2020 4:11:02 PM I Like It. | Report Abuse Reply
Very clear cut differences are highlighted about NSDL and CDSL. In fact I was ignorant about the rolls and operations about both of the bodies. People associated with buying and selling of shares and stocks must read this note. Very well written article. Very useful also.


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More Demat Account Questions...

  1. Is it mandatory to have a demat account to apply in an IPO?
  2. How do I transfer from one demat account to another demat account?
  3. I do not have a demat account. Can I apply in an IPO?
  4. How much interest do I get on demat account?
  5. What are the maintenance changes for a demat account? Are there any hidden charges or processing fees on the transactions I do on demat account?
  6. Do I have to pay yearly maintenance changes even I do not hold any shares in my demat account?
  7. Can a person have more than one demat account on his name?
  8. Can a Demat account opened for a minor?
  9. What is the diffrence between Demat account number and Trading account number ?
  10. What is CDSL and NSDL ?
  11. Can a minor open trading Demat account?
  12. What is a depository?
  13. Who is Depository Participant (DP)?
  14. What is dematerialisation Process?
  15. Why should I hold shares in demat account and is it compulsory for every investor to open a demat account to trade in the stock market?
  16. How many demat accounts I can open?
  17. Is there nomination facility in demat account ?
  18. Do I have to contact all companies for any update in my personal details ?
  19. I am not a frequent trader on stock exchange. What should I do with transaction statement ?
  20. What kind of help can I get If I have problem with my NSDL demat account?
  21. Can I take a loan on my demat holdings?
  22. How much do I pay for my demat account?
  23. What are the value added facilities on my demat account ?
  24. What precautions should i take to prevent misuse of securities lying in my account ?
  25. Can I open more than one demat account with only one DP in identical names?
  26. Can a demat account be opened with four holder's names?
  27. What is the Standing Instruction given in the demat account opening form?
  28. Can someone else operate my demat account on my behalf on the basis of Power of Attorney?
  29. What is a clearing member account and how is it different from a beneficiary account?
  30. How many Demat Account can be added to my Trading Account?
  31. How many Demat Accounts do I need?
  32. Is there any nomination facility in Demat Account?
  33. Do I need to contact all companies for any update in my personal details?
  34. What precautions should I take to prevent misuse of securities lying in my demat account?
  35. I am not a frequent trader on stock exchange. What should I do with Transaction Statement?
  36. How much do I need to pay for my Demat Account?
  37. What kind of help can I get if I have any problem with my NSDL Demat Account?
  38. What are the value added facilities on my demat account?
  39. How long can I hold the shares of a company? What are the changes applied in holding shares for the long term?
  40. How do I safeguard my Demat Account with Power of Attorney to Broker?
  41. Are there different types of Power of Attorney?
  42. What is the validity of my Power of Attorney for demat account?
  43. Are there any charges associated with Demat Power of Attorney?
  44. Does broker allows time bound Power of Attorney for Demat Account?
  45. Should Power of Attorney be printed on the Stamp Paper?
  46. Can I sign Power of Attorney online?
  47. Can a Broker misuse the Power of Attorney?
  48. Can a Broker withdraw money from my linked bank account using the Power of Attorney I gave?
  49. Can I use Broker Pool Demat Account to keep my share and do not give Power of Attorney?
  50. Can I trade in Futures and Options without Power of Attorney to my Demat account?
  51. My signed Power of Attorney is still in courier. Can I still trade?
  52. How can I get dividends directly to the bank instead of the cheque? Is there any online application?
  53. Can I add another person to my demat account?
  54. Why do I need a demat account?
  55. Is demat account required for SIP?
  56. What is the differences between NSDL and CDSL?
  57. Does any stock broker offer CDSL Easiest facility?
  58. Can I transfer shares from CDSL demat account to NSDL demat account?
  59. What happens if I do not pay AMC for a demat account?
  60. Can I open Demat Account without PAN Card?

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