is a demat account?
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.
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.
does a demat account work?
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
required to open a demat account
are four sets of documents that are mandatory for opening a demat account.
These are documents are as under:
Photograph and cancelled cheque with name, IFSC printed
proof of identity
proof of residence
List of documents admissible as proof of
following documents are admitted as proof of identity:
card with photograph
card with photograph
other photo identity card issued by the central or state governments or by any
other statutory authority created under an Act of Parliament
other identity card or document with photograph signifying membership or
working relationship issued by central / state government or any statutory
List of documents admissible as proof of address
following documents can be offered as proof of address while opening demat
/ voter id card with latest address mentioned
/ Sale agreement of the property with location map
bills like phone bills, water bills, electricity bills, gas bills with the name
of owner or the requisite link documents
of address issued by the bank managers of scheduled commercial banks with letter
and photograph stamped with bank seal
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
id card or Pension Card is also admissible
List of people authorised to attest demat
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.
Advantages of a demat account & benefits of
opening a demat ac with Narnolia
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.
Demat account opening charges with Narnolia
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.
How to open a DEMAT account – Procedure
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.
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.
How to choose the right
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