Demat Account

Open A Demat Account through ShareKhan

Babla Mondal
Mobile:-  +91 9007023980
E-Mail:-   bablamondal89@gmail.com

  

ShareKhan Website Link:   http://www.sharekhan.com

 

 What is Demat Account: 

In India, Shares and securities are held electronically in a Dematerialized (or "Demat") account, instead of the investor taking physical possession of certificates. A Dematerialized account is opened by the investor while registering with an investment broker (or sub-broker). The Dematerialized account number is quoted for all transactions to enable electronic settlements of trades to take place. Every shareholder will have a Dematerialized account for the purpose of transacting shares.

Goal of Demat System:

India adopted the Demat System for electronic storing, wherein shares and securities are represented and maintained electronically, thus eliminating the troubles associated with paper shares. After the introduction of the depository system by the Depository Act of 1996, the process for sales, purchases and transfers of shares became significantly easier and most of the risks associated with paper certificates were mitigated.

Demat benefits:

The benefits of demat are enumerated as follows:

• Easy and convenient way to hold securities
• Immediate transfer of securities
• No stamp duty on transfer of securities
• Safer than paper-shares (earlier risks associated with physical certificates such as bad delivery, fake securities, delays, thefts etc. are mostly eliminated)
• Reduced paperwork for transfer of securities
• Reduced transaction cost
• No "odd lot" problem: even one share can be sold
• Change in address recorded with a DP gets registered 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 the need for notifying companies.
• Automatic credit into demat account for shares arising out of bonus/split, consolidation/merger, etc.
• A single demat account can hold investments in both equity and debt instruments.
• Traders can work from anywhere (e.g. even from home).

 Documents Required for Sharekhan Demat Account:

Proof of Identity

• Voter ID
• Passport
• PAN Card
• MAPIN UID Card
• Driving License
• Photo Icard issued by Employer registered under MAPIN
• Copy of Ration Card

Address Proof

• Voter ID Card
• Driving License
• Passport
• Ration Card
• Telephone Bill
• Electricity Bill
• Leave-License
• Purchase Agreement
• Bank Passbook
• Latest Bank Statement
• Insurance Policy
• Flat Maintenance Bill

A copy of cancelled cheque
Nominee photograph, if filled
Signed Photograph of all holders