CDSL SecureInvest

The role of the digital saviour of the stock market

If you invest in the share market or plan to invest in the future, you must have heard of CDSL, but do you know what it is and how it works? And why is it important for an investor to know this? Let’s explore all this in this blog.

Full-Form & Basic Info

The full form of CDSL is Central Depository Service (India) Limited. This is a SEBI-registered depository of India which works to store shares, bonds, debentures and securities in dematerialised, i.e. digital form.

You can think of CDSL as a bank, but not a bank of money, but a bank of stocks. Just like a bank keeps your money safe, CDSL keeps your shares safe digitally.

History of CDSL

It was established on 15 July 1999 its headquarters is located in Mumbai. It promotes BSE. It aims to fulfil convenient, dependable and secured depository services.

You should know that CDSL also has a competitor which is NDSL. It was established in 1996 and is associated with NSE. Both the depositories are active, but CDSL has established its dominance in the market, especially among retail investors.

How does CDSL work?

Have you ever wondered how CDSL works? Let us know about it. Whenever you open a Demat account through a stock broker, that account is registered with CDSL or NSDL.

Whenever you purchase any stock, it comes into your Demat account in electronic form and CDSL maintains its record and when you sell a share, it debits it from your CDSL account.

In very simple words Buy → Shares credited by CDSL, Sell → Shares debited by CDSL.

Features & Benefits of CDSL

It transacts in a secure and transparent way which you can track and since it is fully digital, there is no need for any paperwork. You can check your holdings very easily using the app’s “Easiest” (Electronic Access to Securities Information) facility. In this, stock is transferred in T+1 or T+2 and whenever you sell or buy any share or any type of transaction takes place in your account, CDSL alerts you with the help of email or SMS. And the best thing is that there is no possibility of any fraud here because the transaction takes place digitally.

What is CDSL PIN?

Whenever you sell shares, you need a CDSL T-PIN to authorise the transaction. This works as a 2FA security system and you can generate it manually.

CDSL Role for Investors

CDSL keeps a record of all your Demat holdings and whenever you invest in any IPO or bonds, CDSL also maintains a record of that. Not only this, when you apply for any IPO, when its shares are allotted, those shares are also credited to your CDSL account.

CDSL works like an invisible backbone that helps keep the Indian stock market running smoothly and you will be surprised to know that without it your Demat account will not work.

Conclusion: Kya Aapka Demat CDSL Se Linked Hai?

In today’s digital era, cyber frauds have increased so much, but CDSL secures your transactions from all those frauds. Whether you are a beginner or an experienced investor, CDSL guards your shares like a guardian.