You may have heard a lot about opening a demat account. But how to open demat account in a hassle-free manner is a question many seek answers for. Modern technologies have made it very easy to open a demat account today. Start by looking for a trusted brokerage firm that is a Depository Participant with one of the depositories in India.
Let’s understand the roles Depositories and Depository Participants (DPs) play in the journey of how to open demat account.
In India, SEBI (Securities Exchange Board of India) regulates the securities market. NSDL (National Securities Depository Limited) and CDSL (Central Depository Services Limited) are the two depositories that facilitate opening of new demat accounts. NSDL and CDSL are registered with SEBI.
The brokerage companies offering demat services to retail investors are required to take membership as a ‘Depository Participant’ (DP) with them. Apart from the data security and securities management facilities offered by Depositories, DPs have developed their own set of personalised services that are advantageous to their cleints.
Difference between NSDL and CDSL
Technically, there is not much of a difference between NSDL and CDSL. NSDL was founded in 1996 and CDSL was established in 1999. Both the organisations utilise highly secure technologies to facilitate storage and settlement of shares in dematerialised format. They both have similar guidelines on how to open demat account.
NSDL is promoted by Unit Trust of India (UTI), NSE, Industrial Development Bank of India (IDBI) and other major institutions. CDSL is promoted by BSE, Bank of Baroda, Housing Development Finance Corporation (HDFC) and other notable organisations.
You can know more about these depositories by visiting https://nsdl.co.in and https://www.cdslindia.com
Investors cannot open a demat account directly with the depository. Therefore, they need to find a reliable depository participant who acts as an intermediary between investors and the depository. It isn’t enough knowing how to open demat account, you need to do more research about the service provider.
The quality of depository services depends on the experience and infrastructure of the service provider. Trustworthy service providers not only help you with steps on how to open demat account, they also offer personalised services with high-end tools and trading platforms.
How to open demat account?
Choose a reliable DP who provides details on ‘How to open demat account easily?’ along with a number of value-added services. An experienced DP can help you with expert guidance in your investment journey. Just contact a reputed DP such as Tradebulls or fill up the enquiry form on the company website. You will receive all the information required to open a demat account.
If you read about ‘How to open demat account’, you will find that it generally involves hassle-free documentation procedures that are almost paperless now-a-days. After verification of your documents, you will promptly receive user access information pertaining to your online demat account and online trading account.
To conclude, DPs and depositories such as NSDL and CDSL are harnessing new age technologies to offer convenient anywhere, anytime services to retail investors.
Need more information about how to open demat account with Tradebulls, a reputed member of CDSL, you can visit https://www.tradebulls.in/depository-services
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