Download Tax Saving Mutual Fund Application Forms
Invest In Tax Saving Mutual Funds Online
Leave a missed Call on
94 8300 8300
All you should know about Demat Account and KYC
1. What is a demat account and why it is required?
Shares and securities are held in dematerialised form in demat account. It is mandatory to have a demat account to carry out a transaction in stock exchange. Once an account is opened, you can buy shares by visiting a broker personally or online.
2. How to open a demat account?
To open a demat account, you need to get in touch with a registered depository participant (DP). It is just like a bank or broker. You can get a list of registered DPs from NSDL or CDSL websites, then download or collect an account opening form from the registered DP's office or website. It usually takes a week or two to open your account. It is important to add nominee while applying for demat account.
You can open a demat account with banks. However, banks have an option of opening an account with any branch while some have a set of selected branches.
3. Are there any charges levied on demat account?
Account opening charges vary from bank to bank. Some private banks such as HDFC Bank and Axis Bank do not charge account opening fee while others may charge. The fees are also refundable. Other types of fee charged are annual maintenance fee, custodian fee and transaction fee.
4. What is depository?
A depository is an organisation which holds securities like shares, debentures, bonds, government securities, mutual fund units etc. of investors in an electronic form. The securities are held at the request of the investors through a registered Depository Participant. The depository also provides services related to transactions in securities.
5. What is dematerialisation?
Dematerialisation is the process by which physical certificates of an investor are converted to an equivalent number of securities in an electronic form and are credited into the beneficiary's account with his DP.
6. Can multiple demat accounts be opened?
Yes, you can open more than one account at the same name either with same or different Depository Participants (DP). An investor has to fill the KYC form every time he opens a new account. The KYC norms include Proof of Identity, Proof of Address requirements as stipulated by SEBI and PAN number. The investor has to show the original PAN card at the time of opening of demat account.
7. What is rematerialisation?
The process to convert shares back to the physical holding is called as rematerialisation. He needs to fill remat request form (RRF) and request his DP to rematerialize the shares in his account.
8. Can an investor operate a joint account?
No, an investor cannot operate a joint account on 'either or survivor' basis like a normal bank account. But if the beneficial owner authorises any person to operate his account by executing a power of attorney and submitting it to the DP, that person can operate the account on behalf of the beneficial owner.
9. Is there any rule to keep minimum balance of securities in demat account?
No, there is no such rule to keep any minimum balance in demat account
10. Who is the registered depository in India?
Depository registered with SEBI are called as registered depository and currently there are two registered depositories - National Securities Depository Ltd (NSDL) and Central Depository Services Ltd (CDSL).
11. What are the benefits of dematerializing securities?
There are various benefits of dematerializing securities such as
a) It is a convenient and safe to hold securities in demat form
b) Smooth and immediate transfer of securities
c) You don't need to pay any stamp duty on transfer of securities
d) Minimizes your paper work
e) Elimination of risks associated with physical certificates such as bad delivery, fake securities, delays, thefts etc.
f) There is no odd lot problem (you can even trade single share)
g) Reduction in transaction cost
12. What are the KYC norms to open a demat account?
KYC (Know Your Customer) is a customer identification process, which is done to prevent any criminal activity. SEBI has made it mandatory to fulfill the KYC norms in order to open a demat account. These norms include
a) Proof of identity: PAN card with photograph, voter id card, passport, Aadhar card
b) Proof of address: This includes your ration card/ passport/bank account statement, driving license, utility bills like electricity bill, telephone bill. (PAN card is compulsory)
c) You need to give your bank account number to open a DP account.
For further information contact Prajna Capital on 94 8300 8300 by leaving a missed call
Leave a missed Call on 94 8300 8300
Leave your comment with mail ID and we will answer them
OR
You can write back to us at
PrajnaCapital [at] Gmail [dot] Com
---------------------------------------------
Invest Mutual Funds Online
Download Mutual Fund Application Forms from all AMCs
Download Mutual Any Fund Application Forms
---------------------------------------------
Best Performing Mutual Funds
- Largecap Funds Invest Online
- DSP BlackRock Top 100 Fund
- ICICI Prudential Focused Blue Chip Fund
- Franklin India Bluechip
- ICICI Prudential Top 100 Fund
B. Large and Midcap Funds Invest Online
- ICICI Prudential Dynamic Plan
- HDFC Top 200 Fund
- UTI Dividend Yield Fund
- Birla Sun Life Front Line Equity Fund
- Franklin India Prima
C. Mid and SmallCap Funds Invest Online
- Reliance Equity Opportunities Fund
- DSP BlackRock Small & Midcap Fund
- Sundaram Select Midcap
- IDFC Premier Equity Fund
- Birla Sun Life Dividend Yield Plus
- SBI Emerging Businesses Fund
- HDFC Mid-Cap Opportunities Fund
- ICICI Prudential Discovery Fund
D. Small and MicroCap Funds Invest Online
- DSP BlackRock MicroCap Fund
- Franklin India Smaller Companies
E. Sector Funds Invest Online
- Reliance Banking Fund
- Reliance Banking Fund
- ICICI Prudential Banking and Financial Services Fund
F. Tax Saver Mutual Funds Invest Online
1. ICICI Prudential Tax Plan
2. HDFC Taxsaver
- DSP BlackRock Tax Saver Fund
- Reliance Tax Saver (ELSS) Fund
G. Gold Mutual Funds Invest Online
- Relaince Gold Savings Fund
- ICICI Prudential Regular Gold Savings Fund
- HDFC Gold Fund
- Birla Sun Life Gold
H. International funds Invest Online
1. Birla Sun Life International Equity Plan A
2. DSP BlackRock US Flexible Equity
3. FT India Feeder Franklin US Opportunities
4. ICICI Prudential US Bluechip Equity
5. Motilal Oswal MOSt Shares NASDAQ-100 ETF