Presently, it is compulsory to settle all trades done on any Stock exchange in DEMAT form only. Although, investors have an alternative to hold securities and settle trades up to 500 shares in physical forms, they need a DEMAT account as, in practice because almost all trades on stock exchanges are now being settled in DEMAT form only.
Risks of loss, mutilation or theft of certificates associated with physical certificates are completely eliminated.
Elimination of bad deliveries.
Effects immediate transfer and registration of securities.
No stamp duty is payable by the investors for transfer of any kind of securities in DEMAT form.
Facilitates recording of change of address, transmission, (bank a/c particulars, nomination) etc for all investments held in the account, instead of advising each company separately a single advice will do all such changes.
Comparing and monitoring of the position of all the investments in a
DEMAT account is provided by the statement of account sent periodically by the
Comparing and monitoring of the position of all the investments in a DEMAT account is provided by the statement of account sent periodically by the DP.
should an investor do to open an account with Cochin Stock Brokers Limited DP
Opening a DEMAT account is very simple. It is similar to the opening of a bank account.
An application form can be got from the CSBL DP and apart from submitting a completely filled application form to the CSBL DP the investor has to provide a proof of identity and address (pan card, passport, ? ration card, etc).
Before the DEMAT account is opened the investor will have to execute an agreement on a stamp paper
On opening an account a unique BO ID (Beneficial Owners Identification) is allotted which will be quoted in all future transactions.
One particular DEMAT account can have up to three holders (first holder, second holder, third holder). Account holders can make nomination.