What is the Difference between CDSL and NSDL?
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What is the Difference between CDSL and NSDL? when i start to invest in the Indian stock market they ask to register with CDSL or NSDL
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CDSL and NSDL are the two central depositories in India that hold securities in electronic form. They are regulated by the Securities and Exchange Board of India (SEBI).
**Here are some of the key differences between CDSL and NSDL:**
* **Promoters:** NSDL is promoted by IDBI Bank, Unit Trust of India, and the National Stock Exchange (NSE). CDSL is promoted by the Bombay Stock Exchange (BSE).
* **Market share:** NSDL has a larger market share than CDSL. As of March 2023, NSDL had over 3.4 crore active demat accounts, while CDSL had over 2.1 crore active demat accounts.
* **Stock exchanges:** NSDL is primarily associated with the NSE, while CDSL is primarily associated with the BSE. However, both depositories can be used to trade and settle securities on both exchanges.
* **Demat account number format:** The demat account number format is different for CDSL and NSDL. CDSL demat account numbers have 16 digits, while NSDL demat account numbers have 14 digits followed by “IN”.
**When you start investing in the Indian stock market, you will need to open a demat account with a depository participant (DP). The DP will help you choose between CDSL and NSDL.**
Here are the steps to open a demat account with CDSL or NSDL:
1. Find a DP that is registered with CDSL or NSDL. You can search for DPs online or ask your broker for recommendations.
2. Contact the DP and provide your personal details.
3. The DP will open a demat account for you and provide you with a demat account number.
4. You can then start trading securities in the Indian stock market.
**Here are some resources that you can refer to for more information:**
* SEBI website: https://www.sebi.gov.in/
* CDSL website: https://www.cdslindia.com/
* NSDL website: https://www.nsdl.co.in/