Who Should Invest in

• Hedgers
• Speculators
• Arbitrageurs

The Dematerialized account holder holds an account with the DP, not the issuer. These accounts can be held either by individuals or companies. The ownership of securities in such accounts is evidenced only by book entries and not physical certificates.

The mode of payment depends on the type of shares or mutual funds you own. You can use the physical share certificate for buying/selling if you have physical certificates. In the case of Dematerialized shares, you can open Demat account and can do it online. Once you buy a product, transfer the ownership of shares to yourself in a Demat account to avoid paying tax at every transaction you make.

No, you cannot. You can only open the Demat account with a depository participant (DP) of the depository.

With our 3-in-1 account scheme, you can open a Demat account along with trading account. This helps in streamlining the share trading process. The online process of account opening is instant and hassle-free.

Demat accounts can have up to three joint account holders. One is the primary holder and the other two are joint holders.

A trust can open a Demat account if it is registered under one of the following:

• The Public Trust Act in force in the relevant state
• The Public Trust Act, 1860
• Societies Registration Act
• Bombay Public Trust Act

No, it cannot. But it may open one in the name of the Karta (head of the family).

The SEBI has made it mandatory for Demat account holders to have a nominee. If you do not want a nominee, you must sign a declaration stating so.

Yes, you can have multiple Demat Accounts. However, for your convenience, we suggest you use single Demat account everywhere.

It is not compulsory for you to dematerialise your physical certificates. As per the Depository Act of 1996 you have an option to hold shares either in physical or dematerialised form.

1)LOWER RISK–Possessing shares in their paper format carries a lot of risks like loss, misplacing them, damage to the certificates, etc. Dematerialization of shares eliminates the risk of loss and damage to the securities. The paper certificates also had high incidences of forgery and theft. As the holdings are now in an electronic format, it has reduced the threat of forgery and theft.

2)EASY TO HOLD– A demat account makes equity trading and your shares accessible. You can trade in securities, view your holdings, transaction history, etc. at the click of a button. It also makes managing your details easy. You can make changes to your address, linked phone number, linked bank account, and such other account- related changes for every company stock all from your demat account.

3)EASE OF TRADING– Earlier, paper certificates had to be sent to the Company or the Registrar and Transfer authority to change the ownership of shares, which resulted in delays, additional costs and loss of certificates. With demat accounts; transfer of shares has become easier. Trading in shares, buying, storing, selling online has become seamless and streamlined.

4)REDUCED COSTS– Stamp duty applicable on transfer of physical shares, which was a cumbersome process for investors. Dematerialization of shares has eliminated the stamp duty and reduced all other transactional costs.

5)REDUCED TIME– A demat account minimizes the time taken to trade in equity investments. Buying and selling of shares is a quick process that can be done intra-day through an online trading platform. Similarly, changing personal details in your stocks can be done through a single demat account in which the shares are held. All this has reduced the time taken to trade in and manage securities for investors.

6)ODD-LOT PROBLEM RESOLVED– Earlier, there were multiple restrictions on the selling of shares. Shareholders could not sell shares in odd lots. Demat Accounts has eliminated those restrictions.

7)VARIETY OF INVESTMENTS– With the diversification of investment options, a demat account can store mutual funds, bonds, government securities, Exchange Traded Funds (ETF), etc.