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Demat Account Opening

All about demat account opening and process

What is a demat account?

Demat account is an electronic holding account where you can hold financial securities in a dematerialized form (no paper). The demat account can store equities, mutual funds, government bonds, gold bonds, fixed deposits, ETFs etc.

How does a demat account work?

You need to visit your DP to open a Demat account. Normally, the broker is also the DP as it facilitates easy transactions in your Demat accounts. When shares are bought, they are credited into the demat account on T+2 days. Similarly, when shares are sold, they are debited to the demat account by T+2 day through POA or through DIS Slip.

Depository Participants (DPs)

Let us understand the hierarchy of the depository business. At the top there are the two principal depositories in India viz. NSDL and CDSL. Since it would be too cumbersome for them to directly open accounts, this job is given to depository participants (DPs). These DPs can be brokers; banks or even NBFCs. DPs open demat accounts for clients on behalf of NSDL or CDSL.

How to choose the right depository participant

There are various parameters to choose a depository participant. Ideally, let the broker and the DP be the same as that simplifies the process. Look for pedigree and also the existence in the demat business for a longer period of time. Focus on the technological value-adds that the DP providers. Normally, that is the cutting edge.

Demat account opening charges with Narnolia

As per SEBI regulations, the demat account opening is free of cost. There will be a very nominal annual maintenance charge (AMC) and in addition, there are costs when shares are debited to your demat account on sale of such shares or on submission of DIS. There are no charges for credits into your demat account. All of Narnolia demat charges are highly competitive and fully transparent.

What is a demat account number?

The sixteen digit demat account number is a combination of the eight digit DP id of the DP where you have opened the account and the eight digit account number allotted to you by the DP. You will get your sixteen digit demat account number on opening of demat account from your DP. The demat account number is also written clearly on the top when you access your online demat account. You can also check the demat account number on the DIS (debit instruction slip) booklet.

Advantages of a demat account & benefits of opening a demat ac with Narnolia

Applicants can open a trading account with Narnolia Financial, which is a SEBI registered depository participant with NSDL and CDSL. By opening a demat account with Narnolia, you get the advantage of the most competitive charges, a seamless solution that integrates banking, broking and demat as well as top of the line support and follow up services.

List of people authorised to attest demat documents

In the event of non-availability of originals or in case the DP insists, you may have to get the documents attested by an authorized person. For the purpose of attestation, the authorized persons for Indian residents include the Notary Public, any Gazetted Officer, manager of a scheduled commercial bank etc. In case of NRIs, the Indian embassy in the place of their residence can also attest the demat application documents.

How to open a DEMAT account – Procedure

Demat account can be opened online or offline. You can submit your demat application form along with the required documents; at our branch. There is also the facility of opening your demat account online for the KRA (KYC Registration Agency) complied client. This completes your demat account formality in less than an hour.

  • Documents required to open a demat account

    Broadly, there are four sets of documents that are mandatory for opening a demat account. These are documents are as under:

    • 1 PAN Card
    • 2 Latest Photograph and cancelled cheque with name, IFSC printed
    • 3Latest proof of identity
    • 4 Latest proof of residence
  • List of documents admissible as proof of identity

    The following documents are admitted as proof of identity:

    • PAN card with photograph
    • Aadhar card with photograph
    • Any other photo identity card issued by the central or state governments or by any other statutory authority created under an Act of Parliament
    • Any other identity card or document with photograph signifying membership or working relationship issued by central / state government or any statutory body.
  • List of documents admissible as proof of address

    The following documents can be offered as proof of address while opening demat account

    • Passport / voter id card with latest address mentioned
    • Lease / Sale agreement of the property with location map
    • Utility bills like phone bills, water bills, electricity bills, gas bills with the name of owner or the requisite link documents
    • Proof of address issued by the bank managers of scheduled commercial banks with letter and photograph stamped with bank seal
    • Any other identity card that is issued by any central or state government or any other statutory body with the full name, photograph and address mentioned clearly
    • Voter id card or Pension Card is also admissible

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