Hook – Are you on the lookout for opening a demat account? There are loads of articles which you might have seen in relation to your query.
Problem – You might be having lots of questions in your brain. What is the process of opening a CDSL Demat account? How can you benefit from it? What are its various features?
Solution – Well, you need not worry. All your questions have been answered in this article.
Problem – Going through the article will not only make you understand the various steps involved in opening a CDSL Demat account but will also inform you about its various features as well as benefits.
Central Depository Services Limited (CDSL) is a depository meant to enable you to hold your securities in an electronic format and facilitate the digital transfer of such securities. Just like NSDL, CDSL also has certain Depository Participants (DPs) who act as agents of the depositories and provide demat account services to the investors.
The investor or the beneficial owner (BO) can get registered with the depository by opening a demat account with one of the Depository Participants. Such a demat account can help you to hold and transfer securities. All the records of the investor’s account are maintained with the CDSL. All the information on the accounts has to be provided in the form of a statement to the account holders at regular intervals.
During its formative years, CDSL was promoted by BSE Ltd. Later, CDSL divested its stake to some of the leading banks, making them sponsors of CDSL.
How To Open A CDSL Demat Account?
It is very easy to get registered for a demat account with CDSL. Follow these simple steps to get your CDSL demat account started.
- The primary step in the opening of the CDSL Demat account is finding a Depository Participant (DP). Numerous banks and other financial institutions are registered with CDSL as agents and can provide you with efficient Demat account services.
- After this, you need to register with the Depository Participant of your choice.
- Once you are registered with the DP, you will be required to fill up an application form. This form can either be offline or online, depending upon the DP. In this application form, you will be required to fill in your personal details along with the bank details.
- Once you have filled up the application form, you will need to attach the required documents and send the completed application form to you Depository Participant. A list of all the documents that need to be attached is provided in the further section.
- After the DP receives your application form, your details will be verified. Once the verification is done, your Demat account will be opened up and the login details sent to you via e-mail or by post.
How To Login Into Your CDSL Demat Account
Once you receive the login details, you can follow the steps given below to access your CDSL demat account.
- Go the website of the Depository Participant.
- There, you can find the option of logging into your Demat account.
- After filling in the details, you will be logged into your Demat account. You can either view your account status or indulge in trading activities.
Documents For Opening A CDSL Demat Account
While filling up the online application form for opening up your demat account, you will be required to provide some documents, either in digital format or in hardcopy format. These documents are:
- PAN Card
- Personal Photographs
- Address Proof which can be your Driving License, Voter ID Card, Aadhar Card, or NREGA Job Card.
- Copy of the Bank Statement or a canceled cheque containing your name and bank account number along with the IFSC code.
Facilities Offered By CDSL
There are numerous facilities that are provided by CDSL to the demat account holders.
- Opening of Demat account via a Depository Participant (DP).
- Dematerialization and Rematerialization fo securities.
- Processing of delivery and providing instructions for receipts.
- Generating and providing account statements.
- Pledging of securities in the BO account.
- Nomination by the BOs in favor of a particular individual.
- Transmission of securities from one BO account to the other BO account.
- Facilitating change of address.
- Providing details pertaining to a Demat account.
- Sending SMS alerts.
The primary aim of CDSL is to facilitate the holding and transfer of shares and to maintain a demat account. In order to provide better transparency, CDSL has its own online portal, CDSL Easi which can help you to view and manage you account in a better way.
You can follow the given steps to easily register for CDSL myEasi
- First of all, go to the website of CDSL, www.cdslindia.com.
- On the right-hand side of the screen, you will find the section of Quick Links. Under that, select ‘Login to – New System MyEasi’.
- You will be redirected to a new page. If you are already registered, you can simply enter your username and password and access your account.
- Otherwise, click on ‘Register for Easi’.
- In the new page, you will be required to enter various information such as Demat Details, OTP, Account Details, etc.
- Once you have filled in all the information, you registration will be complete.
Summary and Personal Opinion
It’s really easy to get registered with CDSL and get your demat account opened. We have mentioned all the essential details which will prove beneficial while opening up a CDSL demat account.
Did you understand the simple method by which you can open a CDSL demat account?
If you understood everything you can now go and easily open up your account with CDSL
If you liked the article, don’t forget to share it with your colleagues, friends, and family members so that anyone looking to open a CDSL Demat account can benefit from it.
CDSL Demat Account FAQs
1) How do I select a Depository Participant?
You can easily choose any one of the many Depository Participants registered with CDSL. The selection of a depository participant is based on many factors such as proximity to your residence or office, level of comfort in financial dealings, etc. The selection of a DP is much like the selection of a bank for opening up a savings account and hence should be done carefully.
2) Can I open more than one demat account?
You can always have more than one Demat account with the same or different Depository Participants.
3) Do I have to keep any minimum balance of securities in my demat account?
It all depends upon your DP. Generally, there is no prescribed minimum balance by the CDSL which you need to maintain in your Demat account.
4) What is the use of an CDSL demat account?
A CDSL demat accountcan be used for various purposes such as:
- Holding and investing in mutual funds.
- Receiving corporate benefits.
- Availing loans which are provided against securities.
- Dematerializing the securities for their safe storage.
- Rematerialization of securities on demand
5) How can I transfer my demat account from one DP to the other?
For transferring your Demat account, you first need to open up a new Demat account with the destination DP. After this, you need to fill up the “Account Clearance Form” and submit it to your existing DP, mentioning the details of your new Demat account. Your securities will be transferred once all the details have been verified.