1. How can I open a Demat account online with Tradebulls?
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
2. How to operate an online Demat account?
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.
3. What are the major objectives of a Demat account?
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.
4. Which are the most important features of Demat account?
The most important feature of a demat account is its electronic storage of your
shares, single point contact for all detail changes and seamless receipt of corporate
benefits like bonus, rights, splits, dividends etc.
5. What are Tradebulls demat account brokerage, charges and fees?
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
6. Why should I open a Demat account with Tradebulls?
At Tradebulls, the demat account gives 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
7. What if I already have a Demat account with another depository?
You can have a demat account with any of the SEBI registered DPs. But it is always
advisable to have your trading and demat account at the same place to avoid any
delays in DIS submission. Tradebulls also gives you a complete trading experience
at a very competitive cost.
8. What types of instruments available for demat at Depository?
All securities that have applied for demat and admitted will have a unique ISIN
number. Apart from equity shares, you can also hold closed ended mutual funds ,
open ended mutual funds, exchange traded funds (ETFs), government of India bonds,
gold bonds, Debentures etc in your demat account.
9. Is dematerialization of securities compulsory?
Today nearly 100% of the exchange clearing and settlement happens in the demat mode
only and 99.5% of all transactions are in demat form. Effective from Dec 05, 2018,
you will not be able transfer shares in physical form without dematerializing them
10. What is transmission of dematerialised securities?
Transmission of shares happens by operation of law as against the transfer of shares
that is a voluntary action. Transmission normally happens when the demat account
holder dies and the shares are passed on to his / her legal heirs based on a registered
11. Can an individual have more than one demat account?
There is no restriction on the number of demat accounts that you have. You can also
have more than 1 demat account with the DP. But remember that DP account has a cost
in terms of AMC and you will have to pay AMC on all your demat accounts. Hence restrict
to just 1 or 2 at the most.
12. Can an investordematerialize any share certificate?
You cannot just dematerialize any share certificate. You can only dematerialize
shares that are eligible and admitted to demat. Such securities are allotted a unique
ISIN number. You can check this list of available securities on the website of NSDL
13. How long does the Dematerialization process take?
From the time you submit the demat request form (DRF) to the DP with the share certificates
to getting the actual credit in your demat account takes around 20-25 days assuming
that all your documents and signatures are proper.
14. What if it takes more than 30 days for Dematerialization of the shares?
If it takes more than 30 days to get your credit, you can check with the DP for
an update and ask them to escalate the matter. You can also write to the RTA to
check the status of your DRF. If things still don’t work then you can first escalate
to NSDL/CDSL and ultimately to SEBI.
15. If I have holdings in dematerialised form, will the bonus/ rights issued against
this be in the same form?
If you are holding shares in demat form, then the bonus and rights will get credited
to your demat account in the same demat form. But yes there will be a change in
the ISIN code in such cases.
16. Can his/her electronic holdings be converted back into certificates?
That is perfectly possible and the process is called rematerialization (Remat).
You need to submit a remat request form (RRF) for the same. Do note that after December
05th, any physical holdings cannot be transferred without first dematerializing
17. How would the client get his/her bonus shares or other non-cash entitlements?
Bonus shares being a non-cash entitlement like stock splits, the credit for shares
will automatically come into your account after the record date. You do not have
to do anything, assuming that your name appeared in the register in the record date.
If it is 1:1 bonus then 100 shares become 200 shares.
18. Can client pledge Dematerialized securities?
Pledging of demat shares is perfectly possible. But the DP will not be involved
in the pledging process. It is an agreement between the borrower (you) and the financer
in this case.
19. What should the client do if he/she wants to pledge electronic securities?
There is a pledge form that has to be given to the DP and then one approved it will
mark the lien on those many shares. The DP is not concerned with the pledge and
that is a private transaction between you and the financing company.
20. How can one request for duplicate Demat account statement.
You can either write to your DP or give a signed request in the appropriate form.
You can also ask for a duplicate demat statement online through your website. Most
DPs may charge you the mailing costs for posting the demat statement to you.
21. Can a demat account be opened in the name of Joint Holders?
A demat account can be opened in the name of joint holders and all the joint holders
must sign for al purposes. When dematerializing shares in physical form, ensure
that the order of joint holders in the certificates and the demat account is the
same, else the demat request will get rejected.
22. Can a demat account be opened in the name of a trust?
Demat account can be opened in the name of trusts provided they are registered under
the Indian Societies Act or Bombay Trust Act or any such relevant state acts. For
unregistered trusts, the demat account will have to be opened in the name of one
of the trustees.
23. Can a demat account be opened in the name of HUF?
As per the revised guidelines announced by SEBI, the demat account can be opened
in the name of the Hindu Undivided Family in the same name of the HUF in the PAN
card. The PAN card of the Karta has to also be submitted at the time of account
24. What are the requirements for opening a demat account in the name of a minor?
A demat account can be opened in the name of a minor but such demat account will
have to be operated by the legal guardian of the minor. The guardian has to be the
father or the mother of the minor, or a court appointed guardian in specific cases.
25. Does a Non Resident Indian (NRI) need any Reserve Bank of India (RBI) permission
to open a demat account?
An NRI does not require any special permission to open a demat account in India.
There are only 2 things to remember. Firstly, the demat account must be opened with
status clearly mentioned as NRI. Secondly, it has to be mentioned in advance as
repatriable or non-repatriable demat account.
26. Can an investor close his demat account with one DP and transfer all securities
to another account with another DP?
That is absolutely possible. In fact, the client can do an off market transfer of
shares from one account to another before closing the account. At the time of closure,
the investor will have to ensure that any outstanding dues to the DP towards DP
charges are fully paid.
27. What is the procedure for selling dematerialised securities?
When you sell demat shares, the process is quite simple and you have 2 choices.
You can choose to give the debit instruction slip (DIS) to the broker each time
you sell shares. Alternatively, you can also give Power of Attorney to the broker
to debit shares in an online trading account, which is actually a lot simpler procedure.
28. What should the Demat account holder do if his/her address is changed? Does
he / she need to write/send mail to each company separately?
The advantage of the demat account is that multiple communication is not required.
You can just give one single communication to your DP for change of address and
that new address gets automatically updated in the master records of all the companies
that you hold in your demat account.
29. Is nomination compulsory for a demat account?
While it is not compulsory to nominate a nominee for your demat account, SEBI is
now insisting that all DPs explain the importance of nomination to the investors
opening DP accounts. In fact, as per the latest SEBI regulations, if you do not
want to nominate, then you need to specifically state that you do not intend to
nominate a nominee for the demat account.
30. How would the client get his/her bonus shares or other non-cash entitlements?
Non cash entitlements are of 2 types; involuntary like bonus and splits and voluntary
like rights and buybacks. In voluntary non-cash entitlements, the investor has to
exercise his/her choice. However, in case of involuntary non-cash entitlements,
the credits are automatically received into your demat account.
31. In the event of death of the sole holder, how the successors should claim the
securities lying in the demat account?
The process becomes a lot simpler if you are the nominee for the demat account.
In that case, the successor can just submit a request for transmission along with
a copy of the registered death certificate. In the absence of nomination, the successor
will have to make the application for transmission with a copy of the registered
will, court order or similarly such evidence of succession.