Demat Accounts for Education Certificates: The Need of the Hour

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Demat Accounts

Soon, you might not be able to adorn the walls of your house with degrees your children are set to earn upon their graduation. Why? Because soon, paper certificates might become obsolete and mark sheets and degrees will be issued in the digital form, similar to how shares have being dematerialised and held in Demat accounts.

Recently, the procedure of dematerialisation of education certificates was introduced by the National Security Depository Limited or NSDL. This means that students are no longer required to carry physical documents of their academic accomplishments during admission at the time of higher education or during job interviews. This game-changing move is set to make paper-certificates and degrees as obsolete.

Let us understand the logic behind this move by NSDL and how it stands to affect the entire education ecosystem.

Demat Accounts for Student?

Currently, a Demat account is usually associated with banking and equity investments. A Demat account or a dematerialised account is a form of account used to hold, trade and transact shares and securities in electronic form. While trading in stocks and securities online, shares and securities are purchased and held in a Demat account, and thereby facilitating an easy trade for the users. A Demat account can hold all forms on securities investments such as shares, exchange -funds, bonds government securities, and mutual funds in one single place

As per NSDL’s latest proposal, we will soon have a Demat account for educational certificates. NSDL plans to upload entire academic data of a student from all universities and school boards at a state, national and a central level.

Every Student shall have their Demat account which will be linked to the NSDL ID or their Aadhar Card. These Academic Demat Accounts shall contain the entire academic history of a student, which includes their degrees, course details, details of board and university, year of passing, overall scores and scores of individual subjects etc.

Benefits of Creating a National Academic Depository (NAD)

The National Security Depository Limited has been awarded the responsibility of dematerialisation of educational and academic report of all students in India and transfers this data into their individual Academic Demat Accounts.

According to experts, this move is set to benefit both the students as well as the educational institutions all over India.


Some of the advantages of creating a National Academic Depository (NAD) are given below.

  • Students will no longer be required to carry their original certificates, get them attested at time of submitting them to colleges and universities for higher education.

  • Colleges and University can directly verify the student’s academic credentials by accessing the National Academic Depository, at this moment speeding up the admission process, which presently is very time-consuming.

  • Recruiters can directly access education and academic history of students by merely accessing the National Academic Depository.

  • Education institutions such as schools, education boards, colleges and universities will no longer be required to maintain academic records of students from the date of their inception. All these educational data can easily be accessed on the National Academic Depository.

  • The National Academic Depository will eliminate fraud and cases of cheating involving fake degrees and certificates, which is prevalent in the present times.

  • The National Academic Depository and storing academic history and qualification in dematerialised form eliminates the risk of individuals losing or damaging their educational certificates, degrees, mark sheets etc. which is very hard to replace and replacement and issuance of duplicate certificates, market sheets and degrees is a time-consuming process.

  • The National Academic Depository will offer an integrated and non-redundant data.

  • Students and individuals can access their academic records easily merely by logging on to the National Academic Depository using their phones and computers

  • Verification of Academic and Educational qualifications will become less time consuming and can be done by merely accessing the National Academic Depository.

The Progress so far

A wing of the NSDL has already contacted and sent a request to all educational institutes, school boards (both state and central boards), state, national and central universities to provide and share results and data of students.

The CBSE has already provided the NSDL with academic records and details of performance and grades of over 27 lakh students so far. Further, most educational institutions and set-ups in India are required to register themselves with the NSDL for the service of dematerialisation of educational data and provide data on their exam results by next year.

How to Open a Demat Account

There is still some lack of clarity on how students will be required to open an academic account. Many experts feel the process will be similar to opening a Demat account for shares. None the less find below process of opening a Demat Account.

  1. Selecting a Depository Participant

The individual is required to select a depository participant with whom they wish to open a Demat account. The depository participant usually is brokerage firms, financial institutions and banks who work as a bridge between the investors and the stock exchanges. The website of NSDL and CDSL have a list of all depository participant posted on their website.

  1. Filling and Submitting all the required Documentation

The individual is expected to furnish an account opening form and submit their KYC details along with the account opening form. The investor needs to provide their identity proof and address proof documents.

  1. Executing an Agreement/Contract.

After selecting a depository participant and filling in all the paperwork, the investor is required to sign an agreement or a contract with the depository participant. The agreement or the contract provides details and information to the investor regarding their rights and duties, responsibilities of the depository participant, schedule of charges related to various fees associated with opening, maintaining and operating a demat account.

It is essential for an investor to read the agreement properly before signing it.

  1. The opening of Demat Account and obtaining a Demat account number

After completion of all the formalities and processing of your application, your Depository Participant opens a demat account and provide the customer with a demat account number, a Beneficial Owner Identification Number (BO ID).

Now the account holder can start buying, selling and storing/holding their stocks, shares and securities in their demat account.

  1. Individuals can also Open Demat account online by logging on the website of the DP of their choice, fill in an application form and electronically submit KYC documents.

A Revolutionary Idea - Demat Account for Education Certificates

India has been witnessing an increase in the number of people who are graduating from the state, central, deemed and private universities. Every student graduating is required to carry a folder containing their life’s work while ensuring the contents of the folders are not lost or damaged. This initiative by the NSDL is going to make paper certificates obsolete and extinct.

The NAD will further improve the process of verification of educational and academic qualifications for higher education institutes and employers and also save unnecessary paperwork required at every step of application and verification.