NSDL Demat Account

If you have ever heard of an NSDL depository or an NSDL Demat account and wondered what those big terms mean, you have found the right article. In India, the NSDL or the National Security Depositories Limited is the largest infrastructure that is capable of handling securities.

Security could be in any form shares, debentures, bonds, units, etc. And a depository is like a bank that holds security in any form and also provides services related to the transactions. The securities are either held or settled in the dematerialized form in the Indian markets. Hence, the Demat account are used to hold securities just like people have funds in banks.

Perks of participation in an NSDL depository

Not only the NSDL offers safe transactions but also provides an electronic platform across the country making it easier for people to access their Demat accounts even through their mobile phones. Some of the perks include,

• Reduced transaction costs and paperwork associated with security transfers.
• Faster transfers and lesser risks such as fake securities.
• Allows holding investments in many forms such as equity and debt tools in one place.
• Automatic share crediting

What is an NSDL Demat Account?

Just like a normal bank account, an NSDL Demat account is for depository participants that choose NSDL for registration, which is one of the largest depositories in the country. NSDL Demat account offer advanced technology along with dematerialized shares which makes it easier for the depository to offer a safer and secure Demat account.

Dematerialization of shares brings about a change in the type of holding, not the type of ownership where the securities are transformed into electronic form. Hence the name Demat account and these are much safer as well.

But this much information is not enough to get yourselves one of these accounts. It is important to be fully aware of the account opening processes and charges as stockbroker are free to change the charges at times to earn more benefits.

Opening an NSDL Demat Account

Opening an NSDL Demat account online is not very difficult but there are a few guidelines that are a prerequisite before getting started. These include:

• To get a NSDL Demat account you must be a citizen of India and 18+ years of age.
• You must have your Aadhaar card linked to your mobile number
• Also, having a valid PAN card is a must.

Once all these conditions are met, we can move forward to know the exact steps to follow to get a Demat account opened.

You can choose to get your account opened online or offline. But since technology has made this process much faster and more comfortable, it is only better to register online by following the below-mentioned steps.

• There is a long list of stockbrokers registered with NSDL. You can choose anyone out of those depending on your needs and trading style.
• Go to the official website and choose “Open Demat Account”.
• Enter your name and mobile number for which an OTP will be generated to verify the same.
• Now for verification, it will ask for your PAN card details and the bank passbook to validate the bank details.
• You may also need to upload a photograph and then input your Aadhaar number which will again for verification.
• Next, once you submit the details it will ask for a few seconds of webcam recording for “person verification”.
• On completion, you will receive a confirmation email containing your user ID and password for your respective Demat account.

How To Check Your NSDL Demat account

Now that your Demat account is registered with NSDL, you can access your account anytime you want. For convenience, you can also install the application and check your transfers and balances from the comfort of your mobile phone.

To access your NSDL Demat account, all you need to do is to:

• Open the NSDL website and click on login.
• Enter the User ID and the password and submit.

In case you forget the password, you can go to forget password and the system will generate an OTP on your registered number. This will allow you to set a new password for your NSDL Demat account.

Summary

Overall, the NSDL Demat account is a very effective way of handling your securities online without much hassle. The registration process is simple and has the latest technology. However, it is advised to be fully aware of the charges associated. Usually the account opening is for free and then the charges range between 0 – 999 rupees. In this world of constant trading and investments, it is only smart to get a Demat account.