It is a regulatory norm by SEBI (Securities and Exchange Board of India), trader’s aren’t allowed to purchase securities under the medium of certificate exchange. This direct regulation has made it compulsory for any individual who looks forward to trade in India must have a Demat A/c.
The financial body which could be a Bank, BFSI website or Brokerage firm where you open your Demat A/c is called the depository participant. All these participants from different category are registered as members with either or both of the depository regulation bodies in India, National Securities Depositories Limited (NSDL) and Central Depository Service Limited (CDSL). Shares are held through these bodies by various depository participants.
The share certificates which are already registered in your name which corelate with the securities submitted for dematerialization by NSDL. NSDL ensures timely updates of the name of the companies which can be a part of the dematerialized form.
The usual timeframe for the whole dematerialization procedure takes up to 15 days.
A confirmation document called Allotment Advice is sent to investors after the purchase of share units. This confirmation is sent to investors to convey that the transfer of units has been initiated to the Demat A/c.
A person will be able to view all the transaction on the online profile which have been processed through the website as well as the transactions done through the demat account.
Payments cannot be processed from a bank which is not registered in the profile. In order to make payments through a different bank it needs to be added as a secondary bank in the profile.
This is a security measure that is practiced. SEBI vides its circular no. CIR/MRD/DP/10/2013 dated March 21, 2013, made it compulsory for listed companies to use electronic payment system for distribution of dividend/interest and other cash benefits to investors.
Regular Demat Accounts:- Usefull for residents in India who want to trade in Online Equity investments.
Repatriable Demat Account:- This type of account is ideal for Non-Resident Indians(NRI) to trade in global market.
NON-repatriable Demat account:- This account is specifically designed for an NRI to trade in online securities without transferring funds abroad.
Visit Credit Karo website.
Click on the investment icon on the toolbar.
Click on demat option and it will take you to the list of demat page.
Click on the dropdown under the Choose Demat to select the product.
Click on the exchange type dropdown and select your exchange type.
Yes there is a provision however the account will be operated and taken by a guardian till the time the minor becomes an adult. Guardian has to be a close relative or blood relative ideally father or mother. In a situation when both parents aren’t there the guardian can only be appointed by court.
This benefit can only be used by individual holding beneficiary accounts which can only be a single or joint account. Group holding accounts are under a society, trust, corporate body, partnership firm and even the holder of power of attorney isn’t authorized to nominate.
There is a provision to freeze the depository accounts for any debits and credits. Any account which is frozen for debits won’t be permitted to proceed with any further transactions, till the time it is authorized unfreeze.
In a situation where there are any changes made in name or addition/deletion of account holder, the person has to open a new account with the desired names and new number of holdings(if any) in that account and subsequently transfer the securities to the newly opened account.