What is history of DEMAT Account?
Demat account was founded in 1996, and used by National Stock Exchange for electronic transaction of share and securities.
What is DEMAT Account?
Demat account is an electronic account where an investor can hold their securities in dematerlized form.
What are the benefits of Demat Account?
Unlike physical certificate, there is no risk of theft or physical damage. Also it makes transaction easy and convenient for settlement. Investor can sell single share also instead of lot size.
What is the difference between a demat account and trading account?
Demat account is used for keeping the shares in electronic form. Trading account is used for buy or sell the shares.
What is DEMATERIALIZATION?
Dematerialization is a process to convert securities from physical mode (certificate) into electronic mode.
What is REMATERIALIZATION?
Rematerialization is the process to convert securities back in physical certificate from electronic mode.
What is NSDL?
NSDL is one of the largest Depositories in the world established in August 1996. NSDL is the first electronic securities depository in India with National coverage having headquarter in Mumbai. Click here to know more
What is CDSL?
CDSL is the second Indian central securities depository based in Mumbai and received the certificate of commencement of business from SEBI in Feb 1999.
What is DEPOSITORY PARTICIPANT?
Depository Participant (DP) is an intermediary between investor and Central Depository (NSDL or CDSL) . Bank, Brokers and financial institutions are empowered for DEMAT account services by NSDL or CDSL Depository.
Can I open a demat account with the depository?
No, you can open demat account only with Depository Participant (DP) of NSDL or CDSL Depository.
What is demat account number?
Demat account number is a unique 16-digit account number. First 8 digit represents Depository Participant and last 8 digit represents invetors unique code.
How to open a DEMAT account?
It is very simple to open demat account. By submitting account opening form along with some basic documents to any depository participant (Stock Broker/Bank etc) you can open demat account.
What are the documents required for a DEMAT account
Following documents required for demat account:
Is there any charges/fee to open demat account?
Most of the depository participant (DP) allow investors to open demat accounts free of cost.
What kind of different securities we can keep in Demat account?
This includes Bonds, ETF ( Exchange Traded Fund), Mutual Fund units, Stocks as well as government securities in electronic form.
Do I need to keep any minimum balance in my demat account?
No. There is no minimum number of securities etc is required to keep DEMAT Account Active.
Can I open demat account as joint holders? Who all can open…Trust, HUF, Corporates etc?
Yes, you can open demat account in joint holder name maximum upto three members.
Is nomination necessary for demat accounts?
Yes, Nomination is mandatory for Demat account. In case if you do not want nominee, you have to sign a declaration.
Can I have multiple demat accounts?
Yes, you may own multiple demat accounts.
How to close demat account?
By submitting a written request to your depository participant or signing a account closure form you can close your demat account.
Can I freeze my demat account?
Yes, by submitting a written request to your depository participant, you can freeze your demat account for any debit. Although the account will continue to receive credits such as bonus etc.
How to modify details in my demat account?
By submitting a details modification form to your depository participant you can modify the details in your demat account. To change the address, you need to give address proof also along with modification form.