What is an NSDL Demat Account?

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A demat account opened with NSDL is called an NSDL Demat account. The financial depositary provides an array of services to its investors. As of March 31st, 2022, NSDL has 26.7 million Demat accounts and Rs 302 trillion Assets Under Custody (AUC).

What is NSDL?

NSDL or National Securities Depository Limited is one of the largest depositories that hold securities in an electronic form. Established in 1996, NSDL manages the electronic transactions of securities. NSDL has facilitated the growth of the Indian financial market in India. It deals with various securities including shares, mutual funds, bonds and more. NSDL has facilitated seamless Demat account transactions over the years. From the article, know what is NSDL account, how to open it and more.

How to open an NSDL Demat account?

Follow the few steps mentioned below to open an NSDL Demat account.

Step 1: Select an NSDL registered Depository Participant (DP).

Step 2: Submit all the necessary documents that include identity proof, address proof and more, with an application form.

Step 3: The depository participant verifies the application.

Step 4: Once the verification is successful, the account can be used to trade securities

After the NSDL Demat account is opened, you receive all the essential inputs to operate the account. It includes Login ID, password, client ID and more.

Benefits of the NSDL Demat Account

NSDL has made dematerialised securities transactions efficient. Online financial transactions come with associated risks. However, NSDL has reduced the risk in electronic transactions of securities to a large extent. The total time and cost involved in exchanging securities have also been reduced significantly.

Conclusion

NSDL Demat account opening online is an easy process once you find the right depository partner. An investor can buy and sell shares online without worrying about loss or damage to physical share certificates. Investors who possess share certificates can convert their shares to electronic format. Contact your DP to dematerialise the shares. The Securities and Exchange Board of India (SEBI), regulates NSDL making it a secure depository for investors.

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