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Demat

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DEMAT ACCOUNT

What is Demat Account?
Demat account is mandatory for trading and investing of shares. Demat refers to dematerialized account. Demat Account is a safe secure and convenient way where you can buy and sell the shares without any paper work and all the things will be taken care by the DP (Depository Participants).If you have demat account you need not to show any kind of physical certificate that you have these shares.
How to Open a Demat account?
To open a Demat account you have to approach DP and he will be guided you the official procedure to open an account.To see who the register DP is, you can visit NSDL and CDSL website .You can choose the DP of your own choice. On opening a demat account, a unique BOID (Beneficial Owner Identification) Number is allotted, which should be quoted in all future transactions.You can open a Demat account with no balance of shares, there is no minimum balance is required
Documents required for opening a Demat Account?
1) To open a demat account you have to fill demat request form
2) One Passport size photograph, proof of address like Voter ID card, electricity bill or Ration Card, Employee ID Card, Bank attestation and Latest IT Return
3) Submit the DRF & share certificate(s) to DP. DP would forward them to the issuer / their R&T Agent.
4) Deface the share certificate(s) you want to dematerialize by writing across Surrendered for dematerialization
5) After dematerialization, your depository account with your DP would be credited with the dematerialized securities.
6) You have to Submit the PAN Card as a proof of identity .As of April 2006 it ismandatory, if any person want to open a demat account should have a PAN CARD (Permanent Account number) .Without a PAN CARD you are not be eligible to open a Demat account

Benefits of Demat Account * Nomination facility is available in Demat account * You can purchase ,hold and sell shares in electronic form * You can save a transaction cost with quick transfer * Shares are credit automatically in Demat account ,no paper work is required * It is quick, easy, safe and secure, it reduces time taken during trading and avoiding the problem like signature mismatch and loss of certificates and the risk due to fire and theft * Demat account holders need not pay stamp duty posted. * You can open a multiple demat account, which can be operated by multiple holders

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