Every Depository Participant has to get registered with the respective depositories to offer Demat account services. But opening Demat account with depository(CDSL or NSDL), is it possible? Let’s gain a complete understanding of the NSDL Demat account.
As already known that all your Demat accounts with the stockbrokers registered with NSDL are managed and maintained by NSDL.
The advanced technology and the dematerialization of shares make it easier for the depository to commit extra security and safety to your Demat account.
But is there any way to open and operate the Demat account directly with the NSDL?
Not only you but many keen investors are looking forward to finding a way to have a Demat account with a depository.
So without any further delay let’s learn about the NSDL Demat account.
NSDL Demat Account Details
NSDL or National Securities Depositories Ltd is one of the two major depositories of India. Currently, more than 278 DPs are registered with NSDL to offer advanced and secure Demat account services.
NSDL Demat Account simply means having a Demat account with the depository participants registered with NSDL.
This makes it important for you to be aware of the account opening process and charges to choose the right stockbroker for opening an account.
No doubt the account opening process is almost similar for all the stockbrokers also NSDL has a similar fee structure for all but stockbrokers are free to change those charges to gain or earn benefits.
NSDL Guidelines for Demat Account
Every firm comes up with specific guidelines to keep things in check and at the same time to make it easier for investors to avail of any of its services.
So, if you are willing to open a Demat account to start investing in the share market, then make sure you are aware of some of the specific guidelines mentioned below:
For having a Demat Account one must be a citizen of India
To open a full-operative Demat account, your age must be 18 years or more.
Now that we know that we cannot directly approach NSDL for opening a Demat account, instead have to find a reliable and registered stockbroker. The account opening process these days is completely online, however, you can have an account offline as well.
The basic requirement for both processes is similar to the documents requirement, charges, etc. However, the time taken in the online process is lesser than the offline process.
Let’s dive in to know the steps involved in opening a Demat account online and offline.
NSDL Demat Account Opening Online
These days technology has made it easier to get things done in no time. So, when it comes to opening a Demat account, most of the investors choose the online way of opening an account.
Choose the stockbroker registered with the NSDL. The list is long and includes different full-service and discount brokers.
On the basis of your trading style and requirements pick the one that suits your need.
Click on the website and select the option “Open Demat Account“.
Enter your name and mobile number and verify the details by entering the OTP received on your number.
Next enter the PAN card details and upload the same for verification.
Other than this upload the bank passbook to validate the bank details.
Upload the photograph and proceed further.
The last step is the NSDL e-sign where you need to enter the Aadhar card and OTP received on your registered number.
Submit the details and complete the process of in-person verification by uploading the video or by recording a few-second video with the web or mobile camera.
Once done you get the account opening confirmation email containing the User ID and Password to login to the respective trading app.
Zerodha is the first and foremost stockbroker that introduces the discount brokerage plan to investors. This brings a big modification in the share market and eventually makes it possible for investors to trade at the minimum cost.
Let’s have a look at some of the features of having a Demat account with Zerodha:
The Demat account opening process is completely online.
It charges account opening fees of ₹200 for equity account while ₹300 for commodity account with the broker.
Once you have successfully opened a Demat account, you now need to know the process of logging in to the Demat account.
The NSDL Demat account login process is as follows.
Open the NSDL website.
Enter the client ID and Password.
Click on Submit button.
You would be able to log in to your Demat account successfully. Other than this, you can use the web or trading app of your DP to log in to your Demat account.
There are cases when a user forgot the user id or password. What should you do in such a case? How will you log in? Fortunately, there is a solution for this as well. In a case where you forget the password, you can log in following the given steps.
When you open the log-in screen of the trading app, click on the ‘Forgot Password’ option.
Enter your DP ID, user ID, and client ID. Click on ‘Generate OTP’.
You will receive a one-time password on your registered mobile number. Enter the OTP, and enter submit.
After the submission of the OTP, a change password screen will appear.
Enter your new password and submit.
Once you have successfully changed the password, you can easily log in to your Demat account.
NSDL Demat Account Number
The Demat account number is the client id that makes your Demat account unique. In NSDL it is the 14 digit code preceded by two alphabets IN.
Now the first 6 digit is the Depository number or DP ID i.e. NSDL number that is the same for all the clients holding an account with the stockbroker registered with NSDL.
The rest 8 digits are the client ID that is the unique identification number provided by the depository to its client.
So, if the NSDL Demat account number provided to you is IN45674887676514 then here the IN456748 is the NSDL number while 87676514 is the unique client ID.
Opening an NSDL Demat account gives you an opportunity to trade across segments. But at the same time, your choice of stockbroker defines a lot about what kind of services you can avail.
Here are some of the drawbacks:
The technical issues in the NSDL can affect your trade.
The AMC charges of most of the stockbrokers registered with NSDL are comparatively high.
There are still many stockbrokers charging high fees for opening a Demat account.
The trading app of most of the stockbrokers is not technologically sound thus making it difficult for beginners to trade.
When we open an NSDL Demat account, we open a Demat account with a Depository Participant registered with NSDL.
If you want to open a Demat account in NSDL, then you have to approach the DP of your choice and fill the registration form. Along with this, you will also submit proof of identity, proof of address, bank account details, and photographs.
The process is easy, and the benefits are many. When it comes to NSDL Demat account charges, then NSDL is not responsible for directly charging the amount but is done by the intermediary in between.
We hope that the concept of the Demat account with NSDL is now clear to you, and you will not face any problem in opening one now.