Dematerialisation on WebNotes

CDSL (Central Depository Services Limited)

Mon, 11 May 2026 00:00:00 +0000

Central Depository Services (India) Limited (CDSL) is India’s second securities depository, established on 12 February 1999 under the Depositories Act, 1996, promoted principally by the Bombay Stock Exchange (BSE). CDSL holds securities in dematerialised (electronic) form on behalf of investors through a network of Depository Participants (DPs), providing custody, electronic transfer, pledge, and corporate action processing services for equity shares, bonds, government securities, mutual fund units, and other categories of securities.

Demat account

Mon, 11 May 2026 00:00:00 +0000

A demat account (short for dematerialised account) is an electronic repository that holds an investor’s securities – shares, bonds, mutual fund units, government securities, exchange-traded funds, and sovereign gold bonds – in digital form rather than as physical certificates. In India, demat accounts are maintained by two central depositories, CDSL and NSDL, through a network of registered intermediaries called depository participants (DPs). Introduced following the Depositories Act 1996, the demat system eliminated the risks associated with physical share certificates – theft, forgery, loss in transit, and cumbersome transfer procedures – and became the foundation of modern Indian capital markets.

NSDL (National Securities Depository Limited)

Mon, 11 May 2026 00:00:00 +0000

The National Securities Depository Limited (NSDL) is India’s first securities depository, established on 8 November 1996 under the Depositories Act, 1996. NSDL holds securities in dematerialised (electronic) form on behalf of investors through a network of Depository Participants (DPs) and provides electronic clearing and transfer services for all major categories of securities including equity shares, bonds, debentures, government securities, units of mutual funds, exchange-traded funds (ETFs), and sovereign gold bonds.