How to Open a De­mat Ac­count

Consumer Voice - - Bfsi -

SEBI has made it com­pul­sory for trades in all listed scrips to be set­tled in de­mat mode. Although trades up to 500 shares can be set­tled in phys­i­cal form, phys­i­cal set­tle­ment is vir­tu­ally not tak­ing place due to the ap­pre­hen­sion of bad de­liv­ery on ac­count of mis­match of sig­na­tures, forgery of sig­na­tures, fake cer­tifi­cates, etc.

To open a de­mat ac­count, you need to get in touch with a reg­is­tered de­pos­i­tory par­tic­i­pant (DP). You can get a list of reg­is­tered DPs from Na­tional Se­cu­ri­ties De­pos­i­tory Lim­ited (NSDL) or Cen­tral De­pos­i­tory Ser­vices (I) Lim­ited (CDSL) web­sites. De­pos­i­tory par­tic­i­pants act as the in­ter­me­di­ary be­tween the cen­tral de­pos­i­tory – NSDL or CDSL – and the in­vestor. DPs can be banks, bro­kers or fi­nan­cial in­sti­tu­tions that are em­pow­ered to of­fer de­mat ser­vices.

Down­load or col­lect an ac­count-open­ing form from the reg­is­tered DP’s of­fice or web­site. It usu­ally takes a week or two to open an ac­count. You can also open a de­mat ac­count with banks. Some banks of­fer the op­tion of open­ing an ac­count with any branch, while some oth­ers have a set of se­lected branches.

Once an ac­count is opened, you can buy shares by vis­it­ing a bro­ker ei­ther per­son­ally or online. This fea­ture helps pre­vent prob­lems such as loss, forgery or theft of the cer­tifi­cates, and makes the process of buy­ing and selling se­cu­ri­ties much more ef­fi­cient.

It is im­por­tant to add a nom­i­nee while ap­ply­ing for

a de­mat ac­count

You can open more than one ac­count at the same name, with the same or a dif­fer­ent de­pos­i­tory par­tic­i­pant (DP). How­ever, you will need to fill the KYC form ev­ery time you open a new ac­count.

Newspapers in English

Newspapers from India

© PressReader. All rights reserved.