Recognize the distinction between CDSL and NSDL: "Wealth is the ability to fully participate in life." Thereau, Henry David
If you have ever asked a friend or relative how to get started investing in the stock market, they will all tell you the same thing: you need to open a Demat account.

So, what exactly is a Demat account, and where does the term depository come into play? This article attempts to answer that question. What Exactly Is A Depository?
Difference Cove image between CDSL and NSDL
A depository protects assets such as cash, gold, and other valuables. A bank is the closest analogy to a depository because it accepts money from customers/clients in the form of a deposit in exchange for interest.

The funds are then transferred to the bank, where they are invested in high-risk, high-return loans, government bonds, or company stakes.

These banks provide financial assistance to businesses and clients while holding assets such as stocks and bonds as collateral. In India, there are primarily two depositories: the CDSL and the NSDL. SEBI, the stock exchange regulator, monitors both depositories.

In addition to monitoring, SEBI regulates and has authority over the two depositories.

What Is the Difference Between CDSL and NSDL and How Does a Depository Work?
Remember how we discussed the importance of having a Demat account at the beginning of this article?

A Demat account is required if you want to begin investing or trading. As a result, whenever you buy or sell shares, the proceeds are credited or debited to your Demat account. read more on: Recognize the distinction between CDSL and NSDL