Want to open a demat account and buy stocks or start trading? Or do you have many demat accounts and want to know whether you should make them joint demat account? Recently one of our reader has mailed me a question about whether having a joint demat account has any additional benefit compared to having a single demat account?
In simple terms, yes the only benefit is the saving of demat account maintenance charges. It’s like having multiple bank accounts. E.g. if you have 2-3 demat accounts in your family member’s name, then you have to pay some annual charges for each account. But if you would have a single demat account having other family members as joint owner, then you just have to pay the charges of one demat account. Let’s find out more information about joint demat account here.
How to open a Joint Demat Account online?
Step 1: First of all you have to approach to any of the depository participant (DP) to open a demat account. You can open a demat account with your bank or stock brooking agencies like sharekhan and many others online.
Step 2: Download the application form from their respective website and other necessary documents like KYC document, ECS mandate form etc. Also get ready with the soft copy of address proof, PAN card and your identity proof document as well.
Step 3: Fill up the forms and provide your signature in all necessary places. Then upload the forms online and proceed with your online demat account application. During filling you have to make sure the type of demat account as single or joint. Besides that you have to specify the nominee details also in clear.
Step 4: After successful verification of your application, you will get a demat account number and online login credentials. In case of any issue during this process, you can call the respective customer care number to get clarified.
The best way to open a demat account online is by asking someone from the depository participant (DP) company to contact you and collect the document from your end by visiting your work place.
Things to remember while operating a demat account
So, you are ready to start your investment in stock market, before that keep these things in mind.
- You have to pay an annual maintenance charge for your demat account.
- Whatever transaction you do with your demat account, will attract a transaction fee.
- You can transfer your demat account holdings to other account without any charges.
- There is no minimum number of shares that have to be kept in the demat account.
- No charge is applicable for closure of DP account.
- In case of joint demat accounts, all account holders involvement is required in key transactions
- One have to be primary account holder and rest as joint owners
- You cannot open demat account in “either or survivor” basis.
- You cannot change name or add or delete the account holder’s names. In such instances, you have to open new demat account with the desired names.
- In case of joint demat account, when someone dies the ownership will be shifted to remaining owners name. In case everyone die, then the nominee will get all the benefits.
If you need more information about joint demat account? Then please contact your bank or respective stock brokerage company for more clarification. You can also share your knowledge or experience here by writing a simple comment below.