Open A Demat Account
Can You Open A Demat Account Easily?
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Demat Account-They are electronic dematerialised account for shares and securities. Earlier people use to possess the shares and securities in physical form. Now you can have the Demat account to possess the share in electronic form. Demat account is opened with brokers or sub-brokers.
How to open Demat account?
- To open an online Demat account, you have to fill an account opening form with a depository participant or an agent of depository participant. You can check a list of depositories on the website of Central Depository services Ltd. India and Nation Securities Depository Ltd.
- Submit the require documents and KYC to open a Demat account.
- An agreement is signed with the depository participant. The agreement includes the rights and duties and schedule of charges.
- One can choose to open a number of Demat account with any of the DP or DP agents.
- Along with Demat account, you need to update bank details so that you can receive dividends, interest, redemption, credits in your bank account.
Demat charges
- There are charges linked to Demat account and investor has to bear it.
- Demat account annual maintenance charge. In some cases, it is also free.
- Charges for dematerialization of the stock
- When you sell the security, there are transaction charges you need to pay.
- DP charges vary with different DP s or agents. You can research on this from a website.
How to Demat the shares
- You can demat share online or approach any DP or agent. You have to fill Demat request form or present the certificate
- You have to surrender the certificate or sign a form
- Your request will be processed online or by DP.
- Your online form or certificate will be shared with the respective company’s registrar and share transfer agent.
- RSTA will dematerialize the corticate or form and updates the demat account.
- The Demat account gets credited with the shares.
FAQ
How to convert physical certificate into the demat form?
You should own demat account with the name mentioned on the share certificate. In a case of joint holders of share certificate, you need to open the demat account with the same sequence of a name.
What is ISIN number?
It is a unique 12-digit share identification number. It is international securities identification number. Each security has different ISIN number.
How to convert physical certificate into the demat form?
You should own demat account with the name mentioned on the share certificate. In a case of joint holders of share certificate, you need to open the demat account with the same sequence of a name.
What is ISIN number?
It is a unique 12-digit share identification number. It is international securities identification number. Each security has different ISIN number.