Over the past few decades, investor interest in the Indian securities market has grown exponentially. Gone are the days when market-linked investments were considered a niche for veteran traders. Owing largely to the streamlining of the investment process, it has become easier to invest in the market. In order to participate in the securities market, you need to open a demat account and a trading account. 

You can open your demat account with one of two leading depositories in India, namely, the National Securities Depository Limited (NSDL) and the Central Depository Services Limited (CDSL). In this article, we shall discuss six significant facts about a CDSL demat account, including how to open a demat account. 

What is a CDSL Demat Account? 

A demat account is a digital account where the securities purchased by the account holder in the securities market get stored. Since the trading process in the Indian markets has become electronic, demat accounts have become an integral component of the investing process. The various securities owned by you are stored in a demat account in an dematerialised form, thereby saving you the need to keep physical ownership certificates. If you choose to open a demat account with the CDSL, then such a demat account is termed as a CDSL demat account. 

Important things to know about CDSL Demat Accounts 

The Central Depository Services Limited or CDSL is one of India’s two leading depositories. CDSL is a listed entity and has more than 600 depository participants (DPs) registered with it. Let us delve into some important facts about CDSL demat accounts:

 

• You can open a CDSL demat account online: The process of opening a demat account with CDSL is extremely simple. All you need to do is visit the official website of CDSL, select the depository participant you wish to open a demat account with, and fill the online account opening form. It is important to keep important documents such as a valid proof of identity, proof of address, and latest passport size photographs handy. 

 

• There are no account opening charges for a CDSL demat account: You can open a demat account with CDSL without having to pay any account opening charges. Once you have opened a demat account with CDSL, you shall be a Beneficial Owner (BO) of the account and can use the account to store the securities purchased through a linked trading account. 

 

• CDSL has 11 Crore+ registered demat accounts in India: CDSL is India’s biggest depository, with more than 11 crore registered demat accounts as of March 2024. In the last quarter of FY 23-24, more than 1 crore new demat accounts were opened with CDSL.

 

• Demat accounts opened with CDSL carry a unique 16-digit number: If you open a demat account with the Central Depository Services Limited, you will be issued a unique 16-digit demat account number. Not only will this account number serve as a distinct identifier for your CDSL demat account, but it will also be quoted in various official correspondence shared by the relevant depository participant. 

 

• CDSL demat accounts can be accessed via CDSL easi: Once you have opened a demat account with CDSL, you can access it through the official website or mobile application of the selected depository participant. Alternatively, you can access your CDSL demat account through the depository’s portal titled easi (electronic access to securities information). You can peruse your demat account holding statement and transaction statement on the CDSL easi portal and access various other functionalities pertaining to your demat account. 

 

• You can invest in various securities via your CDSL demat account: In addition to equity shares, you can invest in various other types of securities through your CDSL demat account, including mutual funds and bonds. Furthermore, you can access important market related information through the account. You can also apply to Initial Public Offerings (IPOs) through your CDSL demat account. 

To sum it up 

If you decide to open a demat account with India’s largest depository, CDSL, you can enjoy a seamless account opening process. The access to your account shall be protected by a unique log in ID and password, and you can use a linked trading account to invest in a wide array of securities traded in the market.