Demat account is the holding of stocks, shares and other securities in electronic
form. Demat account has to be seen in contrast to physical holding of shares. In
physical holding, the investor holds the securities in the form of a certificate
with a unique folio number and unique distinctive numbers. For each company where
the investor holds shares, the certificate will signify the ownership.
In contrast, demat account is about holding all your shares and securities in an
electronic demat account. Like a bank account, the demat account will also operate
on debits and credits. When you buy shares, you get credit of shares into your demat
account and when you sell shares the shares get debited to your demat account.
Since the shares are held in demat mode, the investors does not have to worry about
loss of share certificates, mutilation of share certificates, loss in transit, physically
sending requests for transfer, communicating for change of personal details etc
for each and every share. In demat account, this change has to be only done once
at the account level and then it applies for all shares in the demat account.
Demat account is where you hold shares and other securities in electronic form in
the form of an entry in your demat account. A demat account can hold shares as well
as other securities like bonds, ETFs, gold bonds, closed ended mutual funds , open
ended funds etc. Demat account is a statement of ownership and the value of your
demat account represents your wealth.
Dematerialization is the process of converting your physical shares into electronic
form. Today, over 95% of all share ownership is in demat form only and 100% of all
trades happen only in demat mode. When you hold physical shares, you are first required
to open a demat account with your DP after completing the required formalities.
Once the formalities are completed, your demat account is opened and ready to use.
In case you are holding physical shares, you can dematerialize them by giving application
in demat request form (DRF) to your DP. The DP will first check the DRF is complete
in all respects and then send the certificates to the registrar for verification.
The registrar maintains records of shares and securities on behalf of companies.
For Karvy is the registrar for Reliance Industries. So, if you want to get your
Reliance shares dematerialize, then your DP will send it to Karvy Registry office
in Hyderabad. The registrar will first check that the shares are transferred and
held in your name only. The names in the share certificate must precisely match
with the name in the demat account; otherwise the DRF will be rejected. Then the
registrar will check if the signature in the DRF matches with signature in the master
record of the company. Lastly, the registrar will also check that the share certificates
are not fake or duplicate. Once all these checks are completed the DP will get a
confirmation from the Registrar. After the original share certificates are defaced
and the equivalent number of shares are credited to you demat account. The entire
process of dematerialization takes around 15-20 days before the credit comes into
your demat account.
Account opening charges
Power of Attorney (POA) charges
Penal charges for rejection of DIS or DRF
Annual maintenance charges (AMC) billed each year
Charges for debit to the demat account
Penal charges for delayed AMC payment etc.
You can open an online demat account with Tradebulls by using the online demat application
facility. You need to be authenticated by Aadhar and it is advisable that you also
get an in-person verification (IPV) done either via personal visit or through video
It is quite simple. You just need to link the demat account to your trading account
and your bank account and the rest of the process is quite simpler from there on.
You can access your demat account statements online and also give demat instructions
to your broker online.
A demat account is meant to simplify the way you hold and transaction in securities.
You are saved the hassles of maintaining physical certificates, getting physical
transfers done etc. Demat does away with many risks like bad delivery, share certificate
mutilation, duplicate certificates, fake shares etc.
Demat account charges are available on the website of Tradebulls. There is no account
opening charge and the annual maintenance charges are also waived for the first
year in most cases. You are charged demat debit charges but demat credits are free
At Tradebulls, the demat account gives y you a simple account opening process with
the facility to open your account fully online. Tradebulls also offers seamless
connectivity with your trading account and bank account to make all your transactions
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Basics of Stock Trading in Share Market
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Beginner Guide to Start Online Trading in Share Market
How to Open online Trading Account Online in India?