Faq - DEMAT Account

The Demat account also acts like a bank account. Here too the bank balance can only be entered in the passbook, you cannot keep it in physical form, and it is also protected electronically, and debited and credited like a bank account.

As per SEBI guidelines, shares cannot be sold or bought in any form except demat. Therefore, if you want to buy or sell stocks from the stock market then you must have a Demat account.

When you buy a share, the broker credits the shares in the Demat account with it and it appears in the details of your holding. If you trade through an internet-based platform, you can view your holdings online. When you sell shares, you have to give delivery instructions to your broker, in which you have to fill the details in the stock sold. The stock gets debited in your account and you pay money for the shares sold. If you pay through the internet, debit of shares and credit of amount starts appearing automatically in your account.

  1. There is no problem in holding shares in physical forms with Demat account
  2. There is no dilemma and in this, you can also buy and sell a share.
  3. There is no stamp duty on the transfer
  1. The first step is to open an account with DP (Depository Participant).
  2. Choose a Depository Participant with whom you would like to open an account.
  3. Here is a detailed list of such documents that you may encounter while opening an account (although you do not need all of them).
  4. Proof of Income Photocopy of Income Tax Return (ITR) Acknowledgment slip, salary slip.
  5. Proof of Identity PAN card Identity cards issued by the Central / State Governments, statutory bodies, Aadhar, Voter ID, Driving License, Passport is all accepted.
  6. Proof of Address Driving License, Bank Statement not older than 3 months, Passport, Voter Identity Card, Registered Lease, or Sale of Agreement of Residence, etc.
  7. After submitting the documents you also need to finish in-person verification (IPV) after this you will get an account number/ID.
There are three different types of Demat account-
  1. Regular Demat accounts- these accounts will be only for Indian citizens who reside in India.
  2. Repatriable Demat accounts- These accounts will be only for non-residents Indian (NRI) who wants to transfer money abroad.
  3. Non- Repatriable Demat accounts- these accounts also for NRIs. But does not allow fund transfer abroad.

Yes sure, you can open multiple Demat accounts.

The first eight digits of your Demat account number represent your DP ID and the last eight digits are your customer ID.