31 October 2008
Previously only few parties lik NSDL etc used to provide Demat acs but now RBI authorises different banks to open demat account by its customers in that banks.
for ex if you hav an account in SBI...you can open with them by giving an application and provide necessary details to open demat account.
CDSL's demat services are extended through its agents called Depository Participants (DP). The DP is the link between the investor and CDSL. An investor who opens a demat account with a DP can utilise the services offered by CDSL. While the DP processes the instructions of the investor , the account and records thereof is maintained with CDSL. A DP is thus a "service centre" for the investor.
CDSL's system is based on centralised database architecture with on-line connectivity with DPs. Because of this centralised architecture, the cost for setting up a DP outfit under CDSL system is significantly lower. Similarly, the recurring costs to be incurred by a CDSL-DP in terms of maintaining back-ups and the related data storage are minimal. This enables a CDSL-DP to offer depository services to investors at an attractive price and at the same time achieve break-even faster at much lower volumes. The centralised architecture also allows CDSL-DP to make available to the investors a to-the-minute status of their account and transactions.
CDSL-DPs can also set up branches with direct electronic connectivity with CDSL.
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