How To Invest in Indian Stock Market For Beginners. ~ Tutorial 2 (NSDL And CSDL) Continued...

THE DIFFERENCE BETWEEN NSDL AND CDSL ARE NEED TO BE KNOWN BEFORE A DEMAT ACCOUNT TO BE OPENED. SO, lets continue further.......

NSDL & CDSL Difference NSDL stands for National Securities Depository Limited. CDSL stands for Central Depository Services India Limited. Both the depositories in India are share depositories in India. Just like our cash is fixed or deposited in Banks. These Depositories holds our shares, bonds, debentures, etc in electronic form for all of its members. How NSDL & CDSL works ? When we sell our securities or bonds our securities is automatically debited by these depositories and vice - versa. So, When we open demat account we have to choose between these depositories. Your all assets are hold by these depositories. So when any company needs any shareholders data they can easily get them by these depositories with some rules and regulations. A company when sell its dividends rights or needs to send any notifications then they need to send through via these depositories in India. A Shareholder gets a delivery instruction and other details from the NSDL & CDSL. SO we need to get regularly in touch with them. Difference between NSDL & CDSL @ Demat Account. The NSDL allows you to trade between a shareholder and National Stock Exchange. The CDSL allows you to trade between a Shareholder & Bombay Stock Exchange. *The NSDL is mainly promoted by the big institutions and industries such as IDBI Bank, UTI , NSE, Etc. Whereas the CDSL is mainly promoted by the BSE (Bombay Stock Exchange), HDFC Bank, Bank of India, etc. The NSDL is one of the oldest depositories in India while the CDSL is opened after NSDL. So its the new one and used to trade at BSE mainly. **The range of trading charges differs from depositories to depositories while trading or holding the assets. So, before opening the Demat Account wisely choose between the two depositories and check which one is cheaper. Then open the Demat Account for trading. Tutorial 1 Link :- https://wisemonkeys.in/digital-marketing/how-to-invest-in-indian-stock-market-tutorial-1/ So, we will stop for the day here and will learn something new in next tutorial about the Share market and Investing in India.