What is CDSL and Difference Between NSDL and CDSL

CDSL: There are many such terms in the stock market, knowing which it becomes easy for you to understand the stock market, one of them is the term CDSL Depository, which an investor must know. Is.

If you are searching on the Internet about what is CDSL and you have not found the exact information yet, then you read this article completely, because in this article we have explained the basic information of CDSL to you in easy words.

In this article, we have told you about what is CDSL, when CDSL was established, its purpose of CDSL, its functions of CDSL and the advantages and disadvantages of CDSL.

If you do not know anything about CDSL, then we sincerely hope that after reading this article you will get the right information about CDSL.

What is CDSL

sequence

1 What is CDSL (What Is CDSL )

2 Full name of CDSL (CDSL Full Form )

3 When was CDSL established?

4 Objectives of CDSL

5 Function Of CDSL

6 Advantages of CDSL (Advantage Of CDSL )

7 Disadvantage Of Securities 

8 Difference Between CDSL and NSDL (CDSL Vs NSDL )

9 CDSL FAQs

10 Conclusion: What is CDSL 

10.1 Related Articles 

CDSL is a depository in India, which holds shares, bonds, debentures, and securities of investors in electronic form. CDSL Depository works for the Bombay Stock Exchange (BSE). This is the second depository in India. The headquarter of CDSL is located in Mumbai.

It is like a bank, the way the bank keeps public money in a safe deposit, this is the role of a depository in the stock market.

Just as you need a bank account to avail the services of the bank, similarly an investor needs a Demat account to avail of the services of the depository. If your Demat Account is opened in CDSL through a stockbroker then you can avail of the services of the CDSL Depository.

CDSL Full Form

The full form of CDSL is Central Depository Services Limited (Central Depository Services Limited).

When was CDSL established?

CDSL was established in February 1999. Former Union Finance Minister Shri Yashwant Sinha established CDSL. CDSL is recognized by the Securities Exchange Board of India (SEBI), this depository also works under the rules of SEBI. The headquarter of CDSL is located in Mumbai. CDSL is sponsored by some big banks along with BSE.

Objectives of CDSL

• The main objective of the CDSL Depository is to deposit the securities of the investors in electronic form.
• The objective of CDSL is to provide innovative technology practices to investors and stock brokers in the Indian capital market.
• CDSL aims to increase efficiency by reducing costs in the Indian capital market.
• The objective of CDSL was to make the Indian financial market computerized by eliminating paperwork.

Function of CDSL

Following are some of the major functions of CDSL –

• CDSL opens the Demat Account of the investors.
• CDSL allows investors to store securities such as shares, bonds, debentures, etc. in electronic form.
• CDSL manages the trading of shares in the stock market.
• CDSL maintains records of all securities held by its clients.

Advantages of CDSL

• By opening a Demat account in CDSL, the investor gets rid of the tasks like transfer of shares, and handling of shares in the form of documents.
• In CDSL every trading done by the investor in the stock market is available online, so investors do not face much trouble in trading.
• Fund transfer and securities registration in CDSL are done instantly. Before the introduction of electronic depositories, this work used to take 4-5 months.
• CDSL provides better communication facilities in the share market.
• CDSL also reduces the trading cost of the investors.

Disadvantage of Securities 

• All investments in CDSL are in digital form, so every investment is monitored by the government.
• In CDSL, all the work is done online, so there is also a risk of hacking.

Difference Between CDSL and NSDL (CDSL vs NSDL )

Both CDSL and NSDL are electronic depositories of India, so there is not much difference between the two. But we have told you about the difference between CDSL and NSDL through the table below.

Common Questions Related to CDSL

Conclusion: What is CDSL 

After reading this article you must have understood that what are the functions of CDSL Kya Hai and CDSL. We have tried in this article to get you complete basic information about CDSL Depository. If there is any information left in this article, then you can give your suggestions in the comment box.

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