A guide on the difference between the CDSL and NSDL

Do you know about the muhurat trading time? It is the concept in stock trading. NSDL and the CDSL are also concepts in stock trading. This article is written on the difference between the CDSL and NSDL. 

NSDL stands for national securities depository limited, and CDSL stands for central depository services limited. NDSL has the national stock exchange, which works as the primary operating market, whereas the CDSL has the Bombay stock exchange, which also works as the primary operating market. 

The financial securities, such as stocks, shares, etc., are held by the entities known as the depository in dematerialized form. 

What is muhurat trading time? 

Before diving into the NSDL and CDSL, let us understand the muhurat trading. The term Muhurat time meant auspicious time. Usually, the Muhurat is the time when the planets are aligned to ensure positive results. 

Muhurat trading is a common ritual followed by traders in India. This is the one-hour ritual that is considered auspicious on the day of Diwali for investing in shares. The stock exchange has a certain time of Muhurat trading every year. 

What is NSDL 

Before diving into the nsdl vs cdsl, you must understand the meaning of NSDL and CDSL separately. NSDL, or national securities depository limited, is the largest depository in the world. It is come into use after starting the depository act with the range of art infrastructure to deal with securities in dematerialized form. 

It helps to maintain the demat account, where financial securities such as shares are stored in electronic form. It eliminates the requirements to store the shares in physical copies form and avoids the chances of theft or damage. 

What is CDSL 

CDSL, or central depository services limited, is the top listed depository in the world. It holds the securities such as stocks, shares, bonds, etc., in the dematerialized form. 

It facilitates the securities transactions such as debentures, exchange-traded funds, equities, investment funds units, mutual funds units, etc. CDSL counts the Bombay stock exchange as its promoter. It gets the commencement certificates from SEBI and is listed in the top depository. 

Difference between the NSDL and CDSL 

There are some distinct factors between both depositories, NSDL and CDSL. Check the following points to understand the difference between both depositories. 

  • There are no significant distinguishing factors between the NSDL and CDSL while registering your demat account. Both are regulated by SEBI and provide the same trading and investing options. 
  • The major difference between the NSDL and CDSL is that NSDL has a national stock exchange and CDSL has the Bombay stock exchange. 
  • NSDL was established earlier than CDSL. Your demat account gets 16 digits with CDSL, whereas the demat account gets 14 digits with NSDL. 
  • Both depository, NSDL and CSDL, have different sets of promoters 
  • There are around 289 DP in NSDL and 577 DP in the case of CDSL
  • CDSL has more active demat accounts than the active demat accounts in NSDL. 


Hope you understand the given information about Muhurat trading time, CDSL, and NSDL. CDSL and NSDL are the same entities that SEBI regulates. However, it has been decided by the depository to which type of depository is acquired. 

The investor services provided by the NSDL and CDSL are the same. The depository participants select the NSDL or CDSL based on their benefits and convenience. 

Adrianna Tori

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