InvestorQ : Why can’t I just go and open the demat account with NSDL / CDSL. I will feel safer!
Riya Dwivedi made post

Why can’t I just go and open the demat account with NSDL / CDSL. I will feel safer!

Answer
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Sam Eswaran answered.
2 years ago


No. A demat account cannot be opened directly with the depository. It has to be opened only through a DP of the depository. The DPs are actually acting as the agents of the Depository only. It is practically not possible for NSDL and CDSL to hold and manage crores of accounts on their own. That is why we have DPs who act as agents on behalf of the NSDL and CDSL. There is one more thing for you to know here. Even when you open your account with the DP (your broker or the bank), the shares still reside with the depository only. When you open your DP account, you have the choice to opt for NSDL or CDSL. Depending on which central depository you opt for, your shares will reside them. So you can relax and not worry about the safety of your shares. The depository participants are more for your convenience.