A Demat account( which is the De materialised account where the shares that you bought will be stored in electronic format. You have to open an account with a bank if you want to save your money, make cheque payments etc . Just as that, you need to open a demat account if you want to buy or sell stocks.So it is just like a bank account where actual money is replaced by shares. You have to approach the DPs (remember, they are like bank branches), to open your demat account.
Let's say your portfolio of shares looks like this:
You don't have to possess any physical certificates showing that you own these shares. They are all held electronically in your account. As you buy and sell the shares, the transactions are entered in your account.Just like a bank passbook or statement, the DP will provide you with periodic statements of holdings and transactions.
Practically all trades have to be settled in dematerialised form. Although the market regulator, the Securities and Exchange Board of India (SEBI), has allowed trades of upto 500 shares to be settled in physical form, nobody wants physical shares any more. So a demat account is a must for trading and investing.
We have different packages which vary from zero annual charge to a nominal annual charge.
You can nominate whoever you like by filling up the nomination details in the account opening form. This is to enable the nominee to receive the securities after the death of the holder of the demat account.
When you open an account, the DP will allot a unique BO ID (Beneficial Owner Identification) Number.
If you want to sell your shares, you need to place an order with us and give a 'Delivery Instruction' ( Alternatively , you can authorize us in advance so that you do not have to issue a written delivery instruction every time). Your DP account will be debited with the number of shares sold.
Your pay-out will be dispatched in two days after the transaction (T +2) as a cheque payable to your bank account or will be directly credited to your bank account as per your choice.
All your payments should be in cheque in favour of our principal brokers. Alternatively, your can make an online transfer of funds from your bank account to your trading account.
If you want to buy shares, inform us, so that the shares can be bought and credited into your account .Or, you can buy directly to your account if you have an online account.
Hand-holding for new entrants: For Clients who are new entrants into the fast growing area of Equities, Mutual Funds and Commodity Futures, we extend 'hand-holding' till such a time that the Clients become capable of performing all the related activities by themselves.