What is CDSL & How Does it Work?

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What is cdsl?
2
Introduction

• CDSL full form is Central Depository Services
  Limited and is the second Indian securities
  depository institution. Founded in 1999, CDSL
  holds various securities like shares, bonds,
  etc., in an electronic format. Working for the
  Bombay Stock Exchange (BSE), CDSL is promoted by
  the State Bank of India, Bank of Baroda, Axis
  Bank, HDFC Bank, Union Bank of India, and
  Standard Chartered Bank.
• Nearly 600 stockbrokers are associated with CDSL
  in different capacities. The primary focus of
  CDSL is to provide secure and reliable depository
  services.

3
How does cdsl work?

• Now that you know what is CDSL, lets understand
  the working mechanism of this depository
  institution. The operating mechanism of CDSL is
  just like a bank. The difference is that while
  banks have money from depositors, CDSL has
  securities from investors in an electronic
  format.
• However, you cant directly approach CDSL and
  open an account. You have to do so with the help
  of a depository participant or DP.

4
What is a cdsl demat account

• CDSL Demat account is the account you hold with
  CDSL. For opening a CDSL Demat account, you need
  to visit a DP, the list of which can be found on
  CDSLs website. Once you have selected the DP
  registered with CDSL, you need to submit your KYC
  documents including address proof and PAN Card
  along with the bank account details.
• Upon successful verification, you will get your
  CDSL Demat account number and other related
  details. The CDSL Demat account will be not only
  useful for availing the services of CDSL but also
  aid trading in stocks and other securities. Demat
  accounts with CDSL have a 16-digit numeric
  character.

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