All you need to know about opening demat and remat accounts

1. Types of accounts
H O U S E N O N -H O U S E
B E N IF IC IA R Y A C C L E A R IN G M E M B E R A C IN T E R M E D IA R Y A C
A C C O U N T
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2. ACCOUNT’S CHARACTERISTICS
BENIFICIARY AC Holder of securities own
the securities
CLEARING MEMBER AC Opened by a broker or a
clearing member for the
purpose of settlement of
trades.
INTERMEDIARY AC Opened by a SEBI
registered intermediary for
the purpose Of stock
lending and borrowing.
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3.  NAME OF THE HOLDER
 DATE OF BIRTH (FOR INDIVIDUALS)
 OCCUPATION, INCOME RANGE
 ADDRESS AND PHONE NUMBER, E-
MAIL ID
 BANK DETAILS
 PAN NUMBER
 DETAILS OF NOMINATION
 SPECIMEN SIGNATURES
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COMMON DETAILS

4. COMMON REQUIREMENTS FOR OPENING
DEMAT ACCOUNT
 KYC form (KNOW YOUR CLIENT)
 In person verification with original documents all
holder
 Identification proof
 Address proof
 Photograph of applicant
 Nomination form
 Bank Details
 PAN
 Introduction by existing Account holder
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5. DOCUMENTS FOR VERIFICATION
PROOF OF IDENTITY
 Passport
 Voter Id Card
 Driving License
 PAN Card with photograph
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PROOF OF ADDRESS
Ration Card
Passport
Voter Id Card
Driving License
Bank Passbook

6. ..
Demat, Remat, CorporateDemat, Remat, Corporate
Actions, Transmission &Actions, Transmission &
NominationNomination
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7. DP
 Depository Participant. (A Depository
Participant is one who is admitted or
“registered” as such by SEBI under Section 12
of the SEBI Act 1992 . A DP shall for all
practical purposes, be an agent of CDSL, NSDL
and performing functions assigned to it by
CDSL,NSDL).
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8. DEMAT- MEANING
1. Dematerialisation is the process which enables
Bo’s to convert their Securities in physical
form (Paper Mode) to Electronic Mode is
Called Dematerialisation.
2. The Client opens Demat Account with any DP.
3. Upon Demat, the Certificates are destroyed
and credit entry of exactly equal number of
Securities is created in Depository in
Electronic mode.
4. The B.O. account of holder is credited.
5. The securities loose their identities.9

9. DEMAT PROCESS
1. The registered holder of the securities makes
the request.
2. Securities must be recognised by Depository
as eligible.
3. The holder to have a beneficiary account.
4. The account to be in same name as appears
on security certificates to be dematerialised.
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10. Demat Process:
With Physical CertificateShareholders
Depository
Participants
Account Opening
Demat Request
Form (DRF)
DepositoryR&T
Agent
Dematerialisation
Shareholder goes to DP with his
physical share certificates
Shareholder opens his account
with DP.
Shareholder fills DRF in
duplicate, defaces the shares
and hands over to DP
DP sends information
electronically to Depository
Upon confirmation of Demat by
R&T Agent, the Depository
confirms Dematerialisation.
The DP sends
Share certificates
to R&T agent for
dematerialisation
Credit to the BO
A/c. of the Investor
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11. REMAT
MEANING
 Issuance of physical securities in place of the securities
held electronically in book-entry form with a depository.
 Electronic holding can be got converted into physical
holding at any time.
 It is just reverse of demat.
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12. WHAT IS “ISIN”
International Securities Identification Number:
1. Issued by International Standards Organisation
(ISO) member countries in accordance with ISO
6166.
2. ISIN is 12 digit alpha numeric number.
3. It has three components, prefix, basic & check
digit.
4. Prefix is a two letter country code i.e. IN for
India.
5. The basic number has nine alpha numeric
characters.
6. The last digit is check digit. It ensures the ISIN is
valid.
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13. COMPONENTS OF “ISIN”
For example:IN E 475C 01 03 2
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Country code
category
Company sr.no.
Security code
Issue sr. no.
Check digit

14. COMPONENTS OF “ISIN”
For example:INE 475C 01 012
IN - India
E - Company
475C - Company serial No.
01 - Equity
03 - Issue number
2 - Check digit
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15. NOMINATION
 Under this provision, any investor can nominate a person,
in whom the securities would vest, in the event of original
investor’s death.
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16. NOMINATION
 Nomination can be made/
Cancelled/ Changed at any time
by Individuals only.
 In case of Joint holding all joint
holders to sign nomination form.
 The Nominee shall not be a trust,
society, body corporate,
partnership firm, karta of Hindu
Undivided Family or a power of
Attorney holder.
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17. NOMINATION …Contd.
 A non-resident Indian can be a Nominee,
subject to the exchange controls in force,
from time to time.
 A minor can be nominated.
 Transfer of securities in favour of a
Nominee shall be valid discharge by the
Depository against the legal heir.
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18. DOCUMENTS REQUIRED
 Nomination Form.
 Photograph and Particulars of Nominee.
 Signatures of Nominee.
 Signatures of Two Witnesses
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19. ABOUT CORPORATE ACTIONS
WHAT IS CORPORATE ACTION:
 These are the events which affect the
rights, obligations and/or interests of the
B.O. of the securities held in a DP.
 The examples are payment of interest,
dividend.
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20. CORPORATE ACTIONS
TYPES OF CORPORATE ACTIONS:
1. Monetary benefits e.g., dividend and interest,
2. Non-Monetary benefits, e.g., bonus.
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21. MEANING OF TRANSMISSION
 “Transmission" means devolution of title to shares
by:
1. Death,
2. Succession,
3. Inheritance

22. TRANSFER & TRANSMISSION
TRANSFER: Is a voluntary act of the shareholder.
TRANSMISSION: Is an act brought by operation of
law.

23. TRANSMISSION
SINGLE HOLDING CASES
1. If valid nomination has not been
made, the successors/legal heirs
of the deceased can get the
securities transmitted in their
favour.
2. A request to DP to be made along-
with copy of death certificate and
succession certificate/court
order/Probate or Letter of
Administration duly notarised.

24. TRANSMISSION
JOINT HOLDING CASES:
1. The surviving Joint holders can
get securities transmitted in their
favour.
2. Notarised copy of Death certificate
required.
3. New Account to be in same order
of names of surviving holders as
old one

25. TERMS USED …Contd.
 RRF - Remat Request Form
 ISIN - International Securities
Identification Number
 DIS - Delivery Instruction Slip
 R & T - Registrar & Transfer Agent
 DRN - Demat Request Number
 RRN - Remat Request Number
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26.  DP ID –Depository Identification Number
:IN 301846 for NSDL
 And IN 12025400 for CDSL.
 DRF - Demat Request Form
 RRF - Remat Request Form
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27.  Freeze – A BO can freeze His/her Demat account on
making Request to His/her DP.
 Unfreeze – A BO can unfreeze His/her a/c on making
Request to His/her Dp at any time .
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28. Others
 Freeze and Unfreeze
 Modifications [ Bank details, Address
Change, Change of Nomination, SMS Alert ]
 Billing, Compliance & Audits
 Holding , transactions & Modification Letters
sent to cleints
 Account Closure
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29. For more information please click:
 www.cdslindia.com
 www.nsdl.co.in
 www.nseindia.com
 www.bseindia.com
 www.sebi.co.in
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