Role of CDSL and NSDL in Demat Accounts – What Investors Should Know

Understanding the Role of CDSL and NSDL in Demat Accounts

Behind every Demat account in India are two major depositories—CDSL (Central Depository Services Limited) and NSDL (National Securities Depository Limited). They are the backbone of electronic securities management in India.

In this blog, we’ll explore the roles of CDSL and NSDL, how they differ, and what it means for you as an investor.

What Are Depositories?

A depository is a financial institution that holds your securities (stocks, bonds, mutual funds, etc.) in electronic form—just like a bank holds your money. In India, there are two SEBI-registered depositories:

1. NSDL (established in 1996) – backed by institutions like NSE and IDBI

2. CDSL (established in 1999) – backed by BSE and other stakeholders

All Demat accounts are managed through a Depository Participant (DP), who acts as a bridge between you and the depository.

What Do CDSL and NSDL Do?

• Hold your securities in electronic format

• Enable settlement of trades through DPs

• Update your account with corporate actions (dividends, bonuses)

• Facilitate transfers between accounts

• Provide alerts and statements to investors

• Maintain records and comply with SEBI regulations












Note: As a retail investor, both are equally secure and regulated by SEBI. The choice usually depends on your broker.

How Do You Know Which One You’re Using?

Check your Demat account number:

• If it starts with IN, it’s with NSDL

• If it’s a 16-digit number, it’s with CDSL

You can also check your Client Master Report (CMR) or contact your broker.

What Role Does One Solution Play?

At One Solution, we work with SEBI-registered Depository Participants under CDSL and NSDL. When you open a Demat account with us:

• Your securities are held securely under a regulated depository

• You receive transaction alerts from CDSL/NSDL directly

• We assist you in understanding your account structure

Whether your Demat is under CDSL or NSDL, you are always protected and in full control.

Final Thoughts

Understanding the role of CDSL and NSDL adds confidence to your investing journey. These depositories ensure your shares are held safely and transactions are transparent.

Open your free Demat account with One Solution today—secure, simple, and backed by India’s top depositories.