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Apply for opening a Demat Account

About Demat Account Demat refers to a Dematerialised Account. It is like a Bank Account through that

anAccount holder does share trading (Buy and Sell) and their portfolio of share maintained in that Demat Account. In a Demat Account shares and securities are held in electronic form instead of taking actual possession of certificates. A Demat Account is opened by the investor while registering with an investment broker (or sub broker). After opening anAccount you will receive an Account Number and a DP ID number for the account and that should be quoted for all transactions for the electronic settlements of trades. Access to the Demat Account requires an internet password and a transaction password as well as initiating and confirming transfers or purchases of securities. Purchases and sales of securities on the Demat Account are automatically made once transactions are executed and completed.

Securities and Exchange Board of India (SEBI) has made it mandatory for all individual, Hindu Undivided Family (HUF) or group of people as joint venture to have a

valid DematAccount on his/her name to start share trading (Buy and Sell) or do any investment in stock market. Demat Account can be opened either with investment broker or sub broker of National Securities Depository Limited (NSDL) or Central Depository Services (India) Limited (CDSL). NSDL and CDSL not allow anyone to directly approach them to open aDemat Account. About Depository Participant (DP) A Depository Participant (DP) is an agent of the depository through which it interfaces with the investor and provides depository services. Public financial institutions, scheduled commercial banks, foreign banks operating in India with the approval of the Reserve Bankof India, state financial corporations, custodians, stock-brokers, clearing corporations /clearing houses, NBFCs and Registrar to an Issue or Share Transfer Agent complying with the requirements prescribed by SEBI can be registered as DP. Banking services can be availed through a branch whereas depository services can be availed through a DP. As on September 30, 2008, a total of 711 DPs (266 NSDL, 445 CDSL) are registered with SEBI. Benefits of opening a Demat Account

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A safe and convenient way to hold securities, Immediate transfer of securities, No stamp duty on transfer of securities, Elimination of risks associated with physical certificates such as bad delivery, fake securities, delays, thefts etc,

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Reduction in paperwork involved in transfer of securities, Reduction in transaction cost, No odd lot problem, even one share can be traded, Nomination facility, Change in address recorded with DP gets registered with all companies in which investor holds securities electronically eliminating the need to correspond with each of them separately,

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Transmission of securities is done by DP eliminating correspondence with companies, Automatic credit into Demat Account of shares, arising out of bonus/ split/

consolidation/ merger etc., y Holding investments in equity and debt instruments in a single account.

Where to apply for Demat Account To opening a Demat Account, interested person should approach to any Depository Participant (DP), investment broker or sub broker of NSDL or CDSL. State Bank of India,Bank of India, Kotak Securities Limited is also working as a DP. In India, most of the public sector banks and some private sector banks are working as a Depository Participant (DP). Apart from these banks, across the country, there are so many private financial institutions are working as a Depository Participant (DP) to whom you can approach to opening a Demat Account. To find out the Depository Participant (DP) list in your city, click on below link: Depository Participants (DP) of NSDL

You can open Demat Account with any of the Depository Participant (DP) of your choice that is near to your place and easily accessible to you. Now a days, most of the DP allowing their customers for online trading. You can also open more than one DematAccount on the same name with the same DP and also with different DPs. For all theaccounts, investor has to strictly comply with KYC norms including Proof of Identity, Proof of Address requirements as stipulated by SEBI and also provide PAN number. The investor has to show the original PAN card at the time of opening of Demat Account.

How to approach to DP for opening Demat Account y y y Get a booklet of Demat Account opening Form from your Depository Participant (DP) Fill the Application Form properly and submit that with required documents, Application Form should be submitted with PAN Card, Passport size photograph, Proof of identity (POI) and Proof of address (POA) y Applicants should carry original documents for verification by an authorized official of the DP, under his signature, y Investor has to sign an agreement with DP in a depository prescribed standard format, which gives details of rights and duties of investor and DP, y DP should provide the investor with a copy of the agreement and schedule of charges for their future reference. y The DP will open the account in the system and give a unique account number, which is also called BO ID (Beneficial Owner Identification number) and used for all future transactions. Documents required for opening Demat Account PAN Card Passport size Photograph Proof of Address Proof of Identity Bank Account Number

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For Proof of Identity, any one from the below list can be used: y y y y y Passport Voter ID Card Driving License PAN Card (with Photo) Identity Card (with Photo) issued by Central/ State Government or by their departments y y y y y Identity Card (with Photo) issued by constitutional or regulatory authority Identity Card (with Photo) issued by any Public Sector Undertaking (PSU) Identity Card (with Photo) issued by any scheduled commercial banks Identity Card (with Photo) issued by public sector body Identity Card (with Photo) issued by any college (when applicant is a student)

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Identity Card (with Photo) issued by ICAI, ICWAI, ICSI, Bar Council etc. Credit Card issued by commercial banks

For Proof of Address, any one from the below list can be used: y y y y y y Passport Voter ID Card Driving License Ration Card Bank Passbook Certified copy of Electricity Bill/ Telephone Bill (That should be not more than two months old) y Identity Card (with Postal Address) issued by Central/ State Government or by their departments y y y y y Identity Card (with Postal Address) issued by constitutional or regulatory authority Identity Card (with Postal Address) issued by any Public Sector Undertaking (PSU) Identity Card (with Postal Address) issued by any scheduled commercial banks Identity Card (with Postal Address) issued by public sector body Identity Card (with Postal Address) issued by any college (when applicant is a student) y Identity Card (with Postal Address) issued by ICAI, ICWAI, ICSI, Bar Council etc.

Note: For Proof of Address and Proof of Identity, two separate documents should be produced. Fees for opening Demat Account and their maintenance SEBI has rationalised the cost structure for dematerialisation by removing accountopening charges, transaction charges (for credit or buy transactions of securities), custody charges and account closing charges. Custody charges are now paid by the issuer companies. Broadly, investors are required to pay the charges towards: Dematerialisation and Rematerialisation of their securities Annual account maintenance charges Transactions fees (only for sell transactions)

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Above charges are vary from DP to DP and DP have right to revise the charges by giving 30 days notice in advance. Process to convert physical holding into electronic holding To dematerialise physical securities into electronic holding, investor has to fill a DRF (Demat Request Form) which is available with the DP and submit the same along with physical certificates that are to be dematerialised. Separate DRF has to be filled for each International Securities Identification Number (ISIN). The complete process

ofdematerialisation has given below: Submit share certificates with DRF for dematerialisation to your DP, DP intimates to the Depository regarding the request through the system, DP submits the certificates to the registrar of the Issuer Company, Registrar confirms the dematerialisation request from depository, After dematerialising the certificates, Registrar updates accounts and informs

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depository regarding completion of dematerialization, y y Depository updates its accounts and informs the DP and DP updates the Demat Account of the investor.

Process to convert electronic holdings into physical certificates y Fill in the RRF (Remat Request Form) and request to your DP for rematerialisation of the balances in his securities account, y Depository participant intimates depository regarding the request through the system, y y y y Some Depository confirms rematerialisation request to the registrar, Registrar updates accounts and prints certificates, Depository updates accounts and downloads details to depository participant, Registrar dispatches certificates to investor. of the Public Sector Banks also working as DP with whom you can

open DematAccount:

Allahabad Bank Bank of Baroda

Andhra Bank Bank of India

Bank of Maharashtra Central Bank of India Indian Bank State Bank of Hyderabad State Bank of Bikaner Jaipur Syndicate Bank United Bank of India

Canara Bank Dena Bank Oriental Bank of Commerce State Bank of India State Bank of Travancore Union Bank of India Vijaya Bank

If you want to open your Demat Account with private financial institution, click on below link: Depository Participants (DP) of NSDL

Depository Participant (DP) CDSL Source: Securities and Exchange Board of India