What is CDSL used for?

Written by Editorial Team | Last Updated: August 2026

Central Depository Services Limited (CDSL) is used to hold financial securities—such as shares, bonds, and debentures—in electronic form. It functions as a central depository that maintains accurate ownership records, thereby enabling secure, efficient, and paperless trading and settlement of securities within the financial market ecosystem.

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A CDSL account—officially known as a Demat account managed by Central Depository Services Limited—is an electronic securities account utilized in the Indian financial system to hold shares, mutual funds, bonds, government securities, and exchange-tra...

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