A Demat account is a must for this purpose, which would allow you to hold financial securities like stocks in electronic form. You can also opt for opening a joint Demat account to avoid paying separate account maintenance charges.
Go through the following sections to get insight into the intricacies of a Demat account.
Opening a joint Demat account online is exceptionally convenient. You simply need to follow these steps:
After successful verification, you will receive the credentials to log in to your Demat account. While filling out the form, you must make sure to select the type of Demat account you want to create (such as joint or single).
Also Read: International Mutual Funds
Here’s a checklist of the essential documents required to open a Demat account in India:
Apart from these documents, the Depository Participant may ask you for additional documents to commence trading.
In the case of a joint Demat account, a maximum of three account holders are allowed. Meaning, there can be one primary holder and two joint holders.
The primary benefits of opting for a joint Demat account are as follows:
Also Read: Overnight Mutual Funds
There are a few things that you should keep in your mind while opening a Demat account. They are as follows:
Keeping the above points in mind will help you make an informed decision regarding the opening of a joint Demat account according to your needs. Ensure to keep the documents handy to experience a hassle-free application process.
Ans: This is basically a security measure. The interest or dividend warrants will be issued in the BOs name so that no one can misuse them. In addition, as per SEBI, all listed companies must use an electronic payment system for interest or dividend distribution.
Ans: Yes, a minor can open a Demat account. However, in this case, the account will fall under the complete management of the guardian until the minor reaches the age of 18. The guardian needs to be the minor’s father or mother. In case of the absence of both, a guardian can be appointed by the court.
Ans: Yes, you can easily modify your Demat account by filling out an account modification form. You will have to sign this and submit it along with the necessary documents to the DP. After that, the DP will verify your details and modify the same in the system.
Ans: An NRI can open a Demat account through a Depository Participant or CDSL. However, here the Non-Resident Indian will have to mention the type (NRI or Resident) and also the sub-type (Non-Repatriable or Repatriable) in the application form.
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Disclaimer: Mutual Fund investments are subject to market risks, read all scheme-related documents carefully.
This article has been prepared on the basis of internal data, publicly available information and other sources believed to be reliable. The information contained in this article is for general purposes only and not a complete disclosure of every material fact. It should not be construed as investment advice to any party. The article does not warrant the completeness or accuracy of the information and disclaims all liabilities, losses and damages arising out of the use of this information. Readers shall be fully liable/responsible for any decision taken on the basis of this article.
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