CDSL Demat Account

Are you looking forward to entering the share market by opening a CDSL demat account? If the answer is yes, then today, you will be learning about the various parameters of the same in this piece of information.

Before heading straight to the demat Account in CDSL, let’s scroll a bit of our memory in understanding what is demat account.

The account which is utilized to carry the securities and shares in the electronic format is known as the demat account, and its full form is dematerialized account.

Now, let’s understand that why it is necessary? Basically, the demat account is created by the traders or investors to hold the securities for as long as they want, and it is dematerialized to make it easier for the investors to trade during online trading.

The depositories like NSDL and CDSL offer free Demat account services to the users. Opening Demat account with depository is further possible by choosing the depository participant who is registered with either or both the depositories.

Here, each intermediary has some demat account charges that differ according to the per volume in the account, subscription type, terms and conditions among the depository and stockbroker.

Without wasting a single minute, now, let’s start exploring the world of information about the CDSL demat account.

CDSL Demat Account Meaning

If you are searching for opening a CDSL demat account, then it is very important to understand what is the CDSL demat account meaning.

Let’s come to the point straightaway.

You cannot open the demat account with CDSL, but it is possible to open the account with the stockbrokers who are registered with the CDSL. Under this, there are full-service, discount and government registered stockbroker that allows you to open a Government demat account. 

CDSL has superior DPs across the country that allows free demat account opening services. It is considered to be best if you found the DP which is available to your city. 

Apart from the information mentioned above, it is also necessary to consider that a demat account can also be a single holder account or a joint holder account.

In particular, the demat account could indeed include three maximum account holders, one main holder and two joint holders.

CDSL Demat Account Opening

It is true that you cannot directly open the demat account with CDSL. So how can we understand the CDSL demat account opening? For that, refer to this segment of the information.

Only with the depository participant it is possible to open a demat account. According to the instructions of the SEBI, the investors are not allowed to pay the charges for the account opening except the statutory charges.

The number of securities that are authorized by the CDSL can be easily dematerialized and can be kept in a single demat account.

It is made mandatory by the SEBI to submit the PAN card copy to complete the verification process.

If you want to open a demat account with the CDSL, then you can select the stockbrokers that are the DPs of the depository (CDSL). Following is a small list of the stockbrokers that allow the trading under CDSL.

• Zerodha
• Angel Broking
• Motilal Oswal
• 5paisa
• Sharekhan

After getting a piece of the necessary information about the concept now if you want to open the demat account with the CDSL based DP, then here is the process to start.

• Fill in the essential information and then submit the form. Here is the form for you to kick-off the process:

• After submitting the form, you will get a revert phone call from the executive of the firm who will guide you to open a free demat account.
• After the verification, the demat account will be opened within 24 hours. 
• For the CDSL Demat Account Activation, the account opening process will be carried forward. The procedure is as follows:
  • Search and select the DP considering the charges, background, services, and so on.
  • According to the SEBI, it is important to fill and submit the KYC form and attach the documents along with it.
  • Along with this, the investor will be needed to submit the signed ‘Additional KYC form for opening the demat account’ with the correspondence address proof.
  • Now documents like the Beneficial Owner and Depository Participant’s rights and obligations must be submitted to permit the depository participant to set up an account.
  • There is a unique ‘Beneficial Owner Identification (BO ID) number that is provided to the demat accounts that can be used in future transactions.

Apart from this, you can directly visit the official website of the stockbroker and then can open the demat account from there.

The registration process to open a demat account with the CDSL based stockbroker is easy and smooth.

Note: The demat accounts with the CDSL have a special combination of 16 digits numbers. 

CDSL Demat Account Opening Documents 

If you want to open a demat account, it is necessary to submit a few documents to the stockbrokers. To know about the document required for a demat account, consider the following list:

• Proof of Identity
• Proof of Address
• Photographs
• Mobile number and Email Id
• Bank details

 

The documents mentioned above are necessary to submit to the stockbroker to open a demat account.

The CDSL demat account opening procedure is mentioned in the following segments. So to know more about it, stay tuned to the document.

CDSL Demat Account Charges

Now, after all the necessary information, you might get curious to know about the CDSL demat account charges. Isn’t it? If yes, then below are some pieces of information that will cover both charges, i.e., account opening and AMC.

It is important to gather the information regarding the charges or fees before putting your efforts into it. So to understand the CDSL demat account, it is important to understand the charges of the same.

The segment will cover two types of charges which are as follows:

1. CDSL demat account opening charges
2. CDSL demat account AMC

CDSL Demat Account Opening Charges

You can open the account with the DPs who are authorized with CDSL. For that, if you want to know about the CDSL demat account charges, then here is the brief information about the same. 

Consider the following information regarding the demat account opening charges of the firms.

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CDSL Demat Account AMC

Most of the stockbrokers do not charge any fees for opening the demat account with CDSL.

After the account opening charges, here come the other significant charges, which are known as AMC, i.e., Account Maintenance Charges.

Let’s understand the meaning of AMC. The Account Maintenance Charges were known as the Annual Maintenance Charges earlier. 

The annual maintenance charge (AMC) is the fee paid to the stockbrokers by an investor or trader to keep the demat account active or maintained.  AMC is applicable on the demat account but not on the trading and commodity account.

So, to understand the AMC that is charged by the various CDSL’s DP below is the table to consider.

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CDSL Demat Account Login

The AMCs that are mentioned above are the maximum AMC that is basically charged mostly from the second year, as the stockbrokers do not levy the first year AMC for the investors or traders.

There are stockbrokers that offer the best trading platforms in India. Now, if you want to proceed further with the CDSL demat account login, then it is very important to understand that you can enter the various platforms of the stockbroker if you have an account with them.

At the time of opening the demat account, you will be provided with the unique client Id and password.

This client Id and password will be used by the investor CDSL online demat account login into any trading platform of the stockbroker.

In case if you want to change the password, then it is also possible to visit the platform and change the platform successfully from there.

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Conclusion 

It is true that it is not possible to open the CDSL demat account, but it is possible to open the demat account with the depository participants of the CDSL.

The account opening procedure is simple with the CDSL based stockbrokers. In the case of AMC, it can be seen that the charges vary. The AMC varies from broker to broker.

If we have to talk about the charges then the account opening charges in the CDSL based stockbrokers is mostly zero, which means an investor does not need to pay a single penny to open an account.

After opening the CDSL demat account, it is easier to login into various platforms of the stockbroker.

It is better to research, compare and choose the stockbroker and start investing with it.

Explore, collate and select!

Here is the form to get you started: