Why DEMAT Account is Required? Infographic

Why DEMAT Account is Required for Investing? The maximum vital reason why is transaction ease. Most of the securities are to be had in DEMAT layout now. It is simple to shop for & promote when you’ve got a DEMAT account. Some securities like stocks, NCDs are obligatory to be purchased thru a DEMAT account. Here is an Infographic conveying necessities, main points & options of DEMAT account.

Dematerialization or Demat is an digital type of preserving quite a lot of securities, similar to stocks, debentures, bonds, mutual budget, executive securities, sovereign gold bonds, and so forth.

This is another and environment friendly approach of conserving and transacting in securities than bodily or paper shape. To stay your securities in digital shape, you want to have an account with a depository. Such an account is referred to as the Depository or Demat account.

NSDL & CDSL are depositories in India, registered with SEBI which permits traders to have a Depository or
Demat account thru its brokers, referred to as ‘Depository Participant’ or DP in brief.

We have already written some put up on DEMAT Accounts & its Operations –

DO & Dont’s of DEMAT account

How to open a DEMAT account

How to Transact MFs in DEMAT shape

How can I switch all my property from one demat account to any other?

As opening of a demat account with a selected DP is your selection, continuance of the similar is too. In case you don’t seem to be glad together with your DP or for some other reason why you need to switch your holdings to another demat account, you’ll be able to accomplish that any time.

The process for doing so is discussed underneath –

1. Submit a written and duly signed request within the prescribed layout (Account Closure Form) for your DP with whom you’re conserving the demat account.
2. In the shape, point out the main points of any other demat account the place you need your holdings to be transferred (that is DP title, DP ID and Client ID).
3. If there are any fees to be paid for your DP in appreciate of products and services availed, the similar must be paid. If you’ve paid annual account upkeep fees upfront for your DP, you’re entitled for a proportionate refund for the stability quarters.
4. As in keeping with SEBI’s pointers, in the event you instruct your DP to switch your entire holdings in any other account of yours and shut the primary account straight away, then no fees for switch and closure must be levied by means of the DP. Please notice that this get advantages is to be had provided that each accounts belong to the similar holder(s) at the foundation of PAN.
5. If there is any safety for your account that is no longer to be had for switch for any reason why (similar to below lock-in or pledged), your first account can’t be closed until such reason why exists.