How To Open a CDSL Demat Account – A Step by Step Guide

Over the past few decades, the operational structure of the Indian securities market has drastically evolved. One of the most pivotal changes has been the introduction of dematerialisation and demat accounts. Not only has the adoption of dematerialisation made investing in the market easier and safer, but it has also made the process cost-effective and accessible for investors. In this article, we shall discuss how you can open a CDSL demat account online, and start investing in the market. 

What is a demat account 

Before we delve into the process of opening a CDSL demat account, let us briefly discuss what is a demat account. Designed to store assets in a dematerialised form, a demat account is an online vault which works in close conjunction with a linked trading account. While the orders for buying securities from and selling securities in the market are placed through a trading account, the securities thus purchased or sold are credited or debited into the investor’s demat account. Demat accounts have significantly revolutionised the process of investing in the market. You can open an online demat account with one of two national depositories, namely 

• National Securities Depository Limited 
• Central Depository Services Limited 

What is a CDSL demat account 

Central Depository Services Limited or CDSL is a listed entity in India and offers depository services. A demat account opened with the CDSL is termed as a CDSL demat account and bears a 16-digit unique account number. CDSL offers depository services through more than 500 depository participants or DPs. You can select any credible DP and open an online demat account. 

Steps to open a CDSL demat account 

You can easily open an online demat account with the Central Depository Services Limited. In order to open your CDSL demat account, you must follow the steps mentioned below. 

• Visit the official website of CDSL. 
• Select the option to open an online demat account. 
• Peruse the list of depository participants registered with the CDSL. 
• Check the features of various demat account offerings. 
• Go through the cost schedules of various demat account offerings. 
• Shortlist demat accounts that align with your investment requirements (vis-a-vis features) and budget. 
• Carry out sufficient research to check the credibility and past performance of the shortlisted depository participants. 
• Select a DP to open your CDSL demat account with, and fill the online demat account opening form. 
• Submit the required Know Your Customer (KYC) documents, including proof of identity, proof of address, recent passport size photographs, proof of income, etc. 
• Complete the process of In-person Verification and submit your online demat account application. 
• Wait for your DP to verify the online demat account opening form and the supporting KYC documents. Once they’re verified, your CDSL demat account shall be opened. 
• The selected DP shall share the confirmation of the opening of your online demat account with CDSL; the account access credentials shall also be shared. 
• You can log in to the DP’s official platform to access your CDSL demat account. Alternatively, you can access your demat account on the CDSL website and through the portal titled easi (Electronic access to securities information). 

The bottom line 

With over 12 crore investor accounts, CDSL has 7.03 lakh million securities in its demat accounts. You can also entrust your demat holdings to CDSL by opening an online demat account. It is important to choose a demat account offering that carries all the required features (as per your investment needs) and a feasible cost structure.

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