As a customer of Demat, you don’t interface directly with the NSDL or CDSL. Yes, you open your account with at NSDL or CDSL but the account opening is handled by the DPs on behalf of the depositories like NSDL and CDSL. You get the following services from the DP.
  • Dematerialization services which refer to the converting of physical certificates to electronic form
  • Rematerialization is the reverse of that and it entails the conversion of securities in demat form into physical certificates
  • Apart from the equities, depositories also facilitate the repurchase/redemption of units of mutual funds
  • The offer electronic settlement of trades in stock exchanges connected to NSDL
  • You can do seamless Pledging/hypothecation of dematerialized securities against the loan. Even stock lending can be done through depositories.
  • Electronic credit of securities allotted in public issues, rights issue
  • Receipt of non-cash involuntary corporate benefits such as bonus splits etc in electronic form
  • Receipt of non-cash voluntary corporate benefits such as rights, buybacks etc in electronic form
  • Freezing of demat accounts, so that the debits from the account are not permitted
  • Nomination facility for demat accounts
  • Services related to change of address
  • Effecting transmission of securities
  • Other facilities viz. holding debt instruments in the same account, availing stock lending/borrowing facility, etc.