Demat account is essential for stock market investments and trading. When you have been investing or trading multiple assets, it becomes very crucial to keep a track of your free Demat account holdings and to do so, you need to read the article below. This article will guide you about checking your Demat account with NSDL.
What is NSDL? How Does it Work?
NSDL stands for National Securities Depository Limited, which is India’s first electronic depository for securities. It is a privately held entity founded in 1996. A Depository can be compared to a bank that holds your money, and the Depository holds your securities in the Demat account like a bank holds your money in the bank account.
There are two depositories in India, CDSL and NSDL. When you open a Demat account, you open the account with these depositories. The brokerage houses known as Depository participants have tie-ups with either one of these depositories or both. So, when you open an account with the broker, your account is opened with the depository. You can see with which your account is being opened.
NSDL is promoted by NSE, IDBI, and UTI, which all came together to start NSDL. NSDL not only holds your securities in the Demat account they offer but also maintains the Demat accounts and facilitates the transactions and trading orders placed against the Demat account.
So, when you open trade, suppose you are purchasing stocks, you place the order with the brokerage house, the same is intimidated to the stock exchange, which upon processing the order, the depository gets the securities credited in the Demat account. There are many such functions of a Depository that are crucial for stock market trading and investments.
How to Open a Demat Account with NSDL?
- If you want to open a Demat account with NSDL, you need to check which brokerage houses are offering NSDL Demat accounts.
- Once you figure out the brokerage house (DP), which has a tie-up with NSDL, you need to apply for the Demat account opening process by filling up the Demat account opening form of the DP.
- Then you need to upload the documents like PAN, AADHAAR, Bank statements, and others for KYC requirements.
- Once your KYC is done, your account will be opened, and then registration within NSDL will be taking place for the Demat account.
- You will get the login credentials to form the DP and all other information about your NSDL Demat account.
- You will also get the client id, DP ID, password, and tariff sheet.
Once the account is live, you can start trading or investing using the account.
How to Check Your NSDL Demat Account?
So, to know how to Check the Demat Account in NSDL, you need to follow these steps –
- Firstly, you need to visit the NSDL website, which is. There you will find a link to check NSDL demat account which you have to click on. You can find the option on the left side of the page by scrolling the sidebar.
- Then you need to register yourself, your Demat account with NSDL, and you need to provide the DP ID and the client ID of your Demat account. In the DP Id section, you need to enter the first 8 digits of the 16-digit Demat account number of NSDL which will start with the ‘IN’.
- You need to send the details to your brokerage house (DP) for approval and then when the broker allows or if they have direct access for customers, you can check the Demat account details on NSDL.
- You can download the details of your account and verify the holdings.
Why Should You Open an NSDL Demat Account?
- It will help you keep your share certificates safe in electronic format in the NSDL Demat account.
- You can check your Demat account holdings at any given point in time using the process given above.
- NSDL offers a very smooth and quick transfer of securities, which reduces your effort and saves time.
- The settlement of your transactions is done within t+2 days
So, now you know how you can check your Demat account details on NSDL. It is important to keep an eye on the details from time to time, although your securities are safe in the NSDL Demat account.