How Demat Account Works? – Investallign

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How Demat Account Works?
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Demat Account Works
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Importance of Demat Account

• Before we start How Demat Account Works? Lets
  talk about what is Demat?
• Demat is known as Dematerialisation. Its process
  of Transfer share certification from Physical to
  Digital (Electronic form) format.
• With help of Demat you can digitally secure your
  physical Certification into Demat form.
• Demat Account holds all your physical certificate
  in to Digital format. Its one type of your Bank
  account where you can save your certificate and
  other financial documents, Exchange traded funds
  in Electronics formats. When the shares and other
  securities are dematerialisation their account
  are kept and maintained in the Demat account of
  Depository Participants. DP is authorised by
  CDSL/NSDL to operate Demat Account.

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How to Dematerialised physical Shares in to Demat?

• Person has to open Demat Account for
  Dematerialised Physical Shares.  Following are
  steps to follow for that. Do you have Demat
  Account ? if No then please check before steps to
  open Demat account before process
  Dematerialisation.  You also will know how demat
  and trading account works after reading below
  steps.
• Read more How to Open Demat Account?
• Fill Account Opening Form Who want to open Demat
  account to fill the account opening form with all
  particular details which required.
• Provide Required  Document list Pan Card,
  Identity Proof,  Address Proof, Bank Details etc
  are major document required for the same  Click
  Here for Details Documents

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• Sign DP account opening Agreement with
  Depository  Investor has to then sign it and
  submit it to DP and the DP charges certain fee
  and would give a copy of signed agreement to
  investor. Also submit to sign Terms and Condition
  rights and obligation page.
• Depository Provide Client ID The Depository
  Participant would give the unique Client ID once
  the investors depository account is opened.
• DP provide instruction Slip If investor want to
  transfer his shares to other dp or other investor
  dp account that instruction slip required (its
  one kind of Chq book for DP)
• Dematerialisation Form Investor should fill
  Dematerialisation form and attached Physical
  Certificate. ( for future reference keep Xerox or
  Scan copy of your portfolio of physical
  certificate )

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• Submit Dematerialisation form to DP Office Once
  form fill completely deposit your physical
  certificate with Dematerialisation form to your
  DP office. They will provide you receipt copy.
• DP will submit Dematerialisation form They
  submit Dematerialisation form to respective
  company registrar. They will check all details
  and records in place and match investor sign with
  their records.
• Time Line Maximum 30 days time required for
  Transfer Physical Shares to Demat form if
  everything in place. If any query they will
  inform investor or DP by mail and send
  certificate back.
• After Demat Once your Dematerialisation complete
  you can sell them online or transfer to other
  investor DP by Electronically.
• You can Open Trading Account with SEBI Register
  Broker for sell your dp stock online.

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