Documentation For Account Opening
In order to open a Demat account, you will need to provide/produce the following
documents:
1. INDIVIDUALS
Duly filled (in block letters) Demat Account Opening Form & Depository Client
Agreement.
A photograph of each holder / signatory to be pasted on the form and signed
across.
A photocopy of the PAN card for each holder is compulsory.
Proof of identity (any one of the below mentioned)
- Passport, Voter ID Card, Driving license,
- PAN card with Photograph,
- MAPIN card,
- Proof of Identity cum Address form (Attested by a scheduled commercial Bank
Manager) Click for
format
- Identity card/document with applicant’s photo, issued by:
- Central/State Government and its Departments,
- Statutory/ Regulatory Authorities,
- Public Sector Undertakings,
- Scheduled Commercial Banks,
- Public Financial Institutions,
- Colleges affiliated to Universities,
- Professional Bodies such as ICAI, ICWAI, and ICSI, Bar Council etc.
to their Members
- Credit cards/Debit cards issued by Banks.
Proof Of Address (any one of the below mentioned)
- Ration card, Passport, Voter ID Card, Driving license, Bank passbook,
- Verified copies of Electricity bills (Not more than two months old)/
Residence Telephone bills (not more than two months old).
- License agreement / Agreement for sale, Self-declaration by High Court &
Supreme Court judges, giving the new address in respect of their own
accounts.
- Proof of Identity cum Address form (Attested by a scheduled commercial Bank
Manager) Click for
format
- Identity card/document with address, issued by
- Central/State Government and its Departments.
- Statutory/Regulatory Authorities.
- Public Sector Under takings.
- Scheduled Commercial Banks.
- Public Financial Institutions.
- Colleges affiliated to universities and
- Professional Bodies such as ICAI, ICWAI, Bar Council etc., to their
Members.
- Nomination form (If required)
Note: If the Current Address is same as in Passport / Voter's
ID card / Driving license / MAPIN Card then Proof of Address not
required.
2.CORPORATE ACCOUNTS
Duly filled (in block letters) Demat Account Opening Form & Depository Client
Agreement.
A copy of Certificate of Incorporation,
Certificate of Commencement of Business
Memorandum and Articles of Association.
Board Resolution for opening of the Demat Account and authorising the authorised
signatories to operate the Demat account.
A copy of Bank Pass Book.
Authorised Signatory Photos, Company Common seal on resolution.
To know more about Depository Services contact: dp@srishirdicapital.com
Depository Services :: FAQ's
Demat: Frequently Asked Questions
Account Opening:
What are the benefits of participating in a
depository?
- Immediate transfer of securities.
- No stamp duty on transfer of securities.
- Elimination of risks associated with physical certificates such
as bad delivery, fake securities.
- Reduction in paperwork involved in transfer of securities.
- Reduction in transaction cost.
- Nomination facility.
- Change in address recorded with DP gets registered
electronically with all companies in which investor holds
securities eliminating the need to correspond with each of them
separately.
- Transmission of securities is done by DP eliminating
correspondence with companies.
- Convenient method of consolidation of folios/accounts.
- Investments in equity, debt instruments and Government
securities held in a single account.
- Automatic credit of shares, arising out of split / consolidation
/ merger etc., into demat account.
What are the facilities offered by DP
account?
Following facilities are offered: -
- Dematerialisation i.e., converting physical certificates to
electronic form.
- Rematerialisation i.e., conversion of securities in demat form
into physical certificates.
- Facilitating repurchase / redemption of units of mutual funds.
- Electronic settlement of trades.
- Pledging/hypothecation of dematerialised securities.
- Electronic credit of securities allotted in public issues,
rights issue.
- Automatic receipt of non-cash corporate benefits such as bonus,
in electronic form.
- Freezing of demat accounts, so that the debits from the account
are not permitted.
- Nomination facility.
- Services related to change of address.
- Transmission of securities.
- Other facilities viz. holding debt instruments in the same
account, availing stock lending/borrowing facility, etc.
Can I open more than one account?
- There is no restriction on the number of accounts you can open.
Do I have to keep any minimum balance of
securities in my account?
- No. The depository does not prescribe any minimum balance. You
can have zero balance in your account.
Can I open a single account for securities
owned in different ownership patterns such as securities owned
individually and securities owned along-with my wife?
- No. The demat account must be opened in the same ownership
pattern in which the securities are held in the physical form.
e. g. if one share certificate is in your individual name and
another certificate is jointly held in your and your wife's
name, two different accounts would necessarily have to be
opened.
What do I do if I have physical certificates
with the same combination of names, but the sequence of names is
different? ie. some certificates with husband as first holder and
wife as second holder and other set of certificates with wife as
first holder and husband as the second holder?
- In this case you may open only one account with husband and wife
as the account holders and lodge the security certificates with
different order of names for dematerialisation in the same
account. You will have to fill-up an additional form called
"Transposition cum Demat" form. This would help you to effect
change in the order of names as well as dematerialise the
securities.
Can someone else operate my account on my
behalf on the basis of a power of attorney?
- Yes. If you authorise any person to operate your account by
executing a power of attorney and submit it to your DP, that
person can operate the account on your behalf.
Why should I give my bank account details at
the time of account opening?
- This is to protect your interests. Your bank account number will
be mentioned on the interest or dividend warrant, you are
entitled to, so that these warrants cannot be encashed by any
one else. Further, a bank account number is mandatory to open a
DP account
Can I change details of my bank account?
- Yes. In the depository system, monetary benefits on your
security balances are paid directly into the bank account as per
the details provided by you at the time of opening the account.
Hence you must ensure that you inform your DP of any subsequent
change in bank account detail
What is 'Standing Instruction' given in the
account opening form?
- In a bank account, the account is credited only when a 'paying
in' slip is submitted along with cash/Cheque. Similarly, in a
depository account 'Receipt in' form has to be submitted to
receive securities in the account. However, for the convenience
of investors, the facility of 'standing instruction' is
provided. If you say 'Yes' for standing instruction, you need
not submit 'Receipt in' slip every time you buy securities.
Can I operate a joint account on "either or
survivor" basis just like a bank account?
- No. The demat account cannot be operated on "either or survivor"
basis like the bank account.
Can I add or delete names of accountholders
(second or third accountholder) after opening the account?
- No. Names of the accountholders for a depository account cannot
be changed. If you want to change name or add / delete an
accountholder, you need to open a new account in the desired
holding pattern (names) and transfer the securities to the newly
opened account. The old account may subsequently be closed.
What should I do if my address is changed?
Do I need to write to each company separately?
- In case you change your address, you need to inform only the DP
of the new address DP. When the DP updates the new address in
the system, it will be automatically conveyed to all companies
in which you hold shares.
Who can make use of the nomination facility?
- Nominations can be made only by individuals holding beneficiary
accounts either singly or jointly. Non-individuals including
society, trust, body corporate, partnership firm, karta of Hindu
Undivided Family, holder of power of attorney cannot nominate.
Are joint holders of accounts allowed to
nominate?
- Nomination for joint holders is permitted, however in the event
of death of any of the holders the shares will be transmitted to
the surviving holder's name. In the case of death of all holders
the securities will be transmitted to the nominee account.
Can a NRI nominate?
- Yes, a NRI can nominate directly. But, the power of attorney
holder cannot nominate on behalf of NRI.
Can a minor nominate?
- No, a minor cannot nominate either directly or through its
guardian.
Who can be a nominee?
- Only an individual can be a nominee. A nominee cannot be a
society, trust, body corporate, partnership firm, karta of Hindu
Undivided Family or a power of attorney holder.
Can there be more than one nominee?
- No, only one nomination can be made per depository account.
Can a minor be a nominee?
- Yes, a minor can be a nominee. In such a case, the guardian will
sign on behalf of the nominee and in addition to the name and
photograph of the nominee, the name, address and the photograph
of the guardian must be submitted to the DP.
Can separate nomination be made for each
security held in a depository account?
- No. Nomination can be made account wise and not security wise.
Can a NRI be a nominee?
- Yes, a NRI can be a nominee subject to the exchange control
regulations in force.
What is the procedure for nomination?
- To nominate the account holder(s) must fill nomination form
containing their signatures along with the signatures and
photographs of the nominee and signatures of two witnesses. In
case if the nominee is a minor then the signature and the
photograph of guardian will also be required. This form can be
submitted to DP at the time of account opening or at the later
date even after the account is opened.
Can the nominee be changed?
- Yes, the nomination can be changed by the account holder/s
anytime, by simply filling up a new nomination form and
submitting the same to the DP.
What does transmission mean in relation to
demat accounts?
- In transmission, the securities of the deceased account holder
will be transferred to the account of surviving
holder(s)/nominee/legal heirs of the deceased account holder.
This process is simpler in case of dematerialised holdings as it
can be completed easily by submitting relevant documents to DP.
What is the procedure for transmission of
securities to the nominee in case of the death of the sole account
holder?
- In the event of death of sole holder, the nominee has to submit
various documents such as transmission form, notarised copy of
death certificate and an affidavit in the prescribed format to
the DP for the purpose of transmission of securities. After
verifying these documents and if found in order, the DP will
transmit the securities to the account of the nominee.
What would happen if no nomination is made
for the account?
- In case a nomination is not made by the sole account holder, the
securities would be transmitted to the account of the legal
heir(s), as may be determined by an order of the competent
court. However in cases where the value of securities to be
transmitted is less than Rs. 1,00,000/- the DP may process the
request based on submission of necessary letter of indemnity,
surety , affidavits and "No Objection Certificates" documents.
What is the procedure for transmission in
case of Joint Accounts?
- On submission of Transmission form and a notorised copy of death
certificate of the deceased joint holder(s) in the event of
death of the joint holder(s), the securities will be transmitted
to the surviving holders account. However for transmission of
securities, the account of the surviving holder(s) must be in
the same sequence in which the names appear in the joint account
to be closed.
Dematerialisation / Rematerialisation:
What do you mean by dematerialisation?
- Dematerialisation is a process by which physical certificates of
a beneficial owner are converted into an equivalent number of
securities in electronic form and is credited to his account
with its DP. For this process to happen the beneficial owner
will have to open an account with a DP and have to submit Demat
Request Form (DRF) and physical certificates to the DP. The
beneficial owner can submit securities for dematerialization
provided the holders in the certificate and the account is in
same order. The investor has to ensure that before the
certificates are handed over to the DP for demat, they are
defaced by marking "Surrendered for Dematerialisation" on the
face of the certificates.
Can I dematerialise any share certificate?
- You can dematerialise only those certificates that are already
registered in your name and are in the list of securities
admitted for dematerialisation at NSDL.
What precautions should I take before
defacing a share certificate?
- The securities should be available for dematerialisation before
it is defaced, therefore you should take due care in finding out
with DP whether the ISIN (code number for the security in a
depository system) has been activated and made available for
dematerialisation by the depository. If the certificates are
available for dematerialisation you should submit DRF and
physical certificates to the DP.
How long does the dematerialisation process
take?
- Dematerialisation normally takes about 30 days.
Can my electronic holdings be converted back
into certificates?
- Rematerialisation is a process of converting electronic holdings
back into certificates. You will have to submit a Remat Request
Form(RRF) to the DP who generate a RRN and will forward the
request to the registrar. The Registrar will print the
certificate and forward it to the investor.
Other:
What do you mean by 'Market Trades' and 'Off
Market Trades'?
- Any trade settled through a clearing corporation is termed as a
'Market Trade'. These trades are done through stock brokers on a
stock exchange. 'Off Market Trade' is one which is settled
directly between two parties without the involvement of clearing
corporation. The same delivery instruction slip can be used
either for market trade or off-market trade by ticking either
one of the two options.
What settlement details are required on the
delivery instruction slip?
- On every stock exchange, various settlements are effected every
day such as daily settlement, auction settlement, etc. Each of
these settlements is identified by a combination of a market
type and a settlement number. You are required to mention the
appropriate settlement details on the delivery instruction slip
while transferring the shares to your broker's account. These
settlement details are available on the contract note issued by
the broker.
How would I get my dividend / interest or
other cash entitlements?
- The concerned company obtains the details of beneficiary holders
and their holdings from NSDL. The payment to the investors will
be made by the company through the ECS (Electronic Clearing
Service) facility or by issuing warrants on which your bank
account details are printed. The bank account details will be
those which you would have mentioned in your account opening
form or changed thereafter.
How would I get my bonus shares or other
non-cash entitlements?
- The concerned company obtains the details of beneficiary holders
and their holdings from NSDL. Your entitlement will be credited
by the company directly in your NSDL depository account.
How will the investor confirm that
bonus/rights entitlement is credited into the account?
- The issuer/R&T agent for bonus/rights issue would send an
allotment advice to the investor and the DP would send a
transaction statement showing credit into his account. The
investor can confirm his entitlement by comparing the quantity
shown in the advice and statement of transaction given by his
DP.
Can I freeze my account?
- The system provides the facility to freeze the depository
accounts for any debits or for both, debits and credits. In an
account which is "freezed for debits", no debits will be
permitted from the account, till the time it is unfrozen.
What are the different securities available
for dematerialisation?
- Shares, scrips, stocks, bonds debentures, debenture stock or
other marketable securities of similar nature of any
incorporated company or body corporate including underlying
shares of ADRs and GDRs. Units of mutual funds, rights under
collective investment schemes and venture capital funds,
commercial paper, certificate of deposit, securitised debt,
money market instruments and unlisted securities are the
securities available for dematerialisation.
The investor should note that he can convert physical form of
securities into book entry form in NSDL depository system only
if the company which has issued the securities has entered into
an agreement with NSDL to offer demat facility.
Is it necessary to have a depository account
in case I apply for shares in Rights Issue/IPO?
- It is not necessary to have a depository account for applying
shares through Rights Issue/IPO. The investor can apply shares
in physical form also, however for your convenience and in order
to eliminate the risks to investors on account of fake/forged
certificates, bad deliveries, delays in transfer etc.,
settlement of all trades in securities of company making an IPO
has to be in demat form only.
Can I hold other securities in same demat
account?
- Yes you can have same demat account for the purpose of holding
other securities such as government securities, mutual funds
etc.
To know more about Depository Services contact: dp@srishirdicapital.com
