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What is Demat Account

What is Demat Account?

Dematis the short form for Dematerialized – meaning electronic format of a material object like a share certificate or bond deed. Thus, Demat account means an account where your shares and securities are stored in an electronic format. For all trading – buying and selling of shares and securities, you require a Demat account with a reputed brokerage firm (i.e. Depository Participant).

Your Demat account is held at an accountable depository like NSDL (National Securities Depository Limited) or CDSL (Central Depository Services Ltd). These depositories are registered with SEBI and are governed by rules of custody. Some large finance companies have now also been granted depository rights.

As per the Depositories Act, stockbrokers or Depository Participants (DP) are allowed to open their clients’ Demat accounts in these depositories and extend the services of the depositories to the investors.

What is the need for Demat Account?

Demat account is a necessity for online trading of securities. To ensure a standardized format of shares, exchange-traded funds, government securities and mutual funds in one place, a Demat account is required.

Here’s why you need a Demat account

  • Elimination of physical records- A Demat account significantly reduces your burden of maintaining physical certificates and proofs. All the shares and securities can be converted into an electronic format with a unique ID for each security.
  • Quick and easy transfer- You can transfer the securities in your Demat account anywhere in the world by opening another Demat with any Depository Participant (DP). This allows quick trade settlement of securities across borders within minutes instead of days. When connected with a trading and bank account, the power of a Demat account is real. With a Demat account, securities can also be settled off-market after the closing hours.
  • Tracking and monitoring- Since all your securities are stored online under one unique account called as a DPID (as assigned by the depository), you can easily track your securities in the real-time and keep a check on their movement (buy, sell, transfer activities) if you have authorised your broker to trade on your behalf.

Converting Physical Shares to Demat

If you have any old securities which are still in physical form, you need to fill out the Dematerialisation Request Form (DRF) available with leading brokers and submit it along with the share certificates. You need to mention “Surrendered for Dematerialization” on each document and certificate. The DP will pass on these documents to the depository, the transfer agents and registrars along with the physical share certificates.

It is the purview of the registrar to inform the DP of the status of conversion and the investor should be able to see the converted and credited shares within 15 to 30 days in their Demat account.

Types of Demat Account

There are mainly two types of Demat account –

  • 1) Repatriable Demat Account – This Demat account allows securities to be repatriated outside the country. It is linked to an NRE (Non-resident external) bank account which allows funds (resulting from selling securities) also to be transferred outside India.
  • 2) Non-Repatriable Demat Account – Here the securities are not allowed to be moved outside the country. This Demat account is linked to a Non-resident Ordinary (NRO) account which also does not allow funds to be moved outside the country.

The transfer from NRE account for funds to NRO account is easy but the reverse is not true.

Opening and Closure of Demat Account

You can open a Demat account with any broker by filling out the form for Demat and trading (if you wish to trade). Usually, brokers waive the account opening charges (free Demat account) and give preferential pricing if you opt for trading as well.

For closing a Demat account, you need to download the closure form from the broker (DP) and mention your DPID or client ID. You also need to mention the reason for closing the account along with details such as name, address, etc. which should match as per the DP records.

Contact Us

Head Office

Bajaj Financial Securities Ltd.

Mantri IT Park, Wing B, Viman Nagar,

Pune, Maharashtra 411014

Contact No: +91 020-48574443

Email Id:connect@bajajfinserv.in

  • SEBI Registration No.: INZ000218931

  • BSE Cash/F&O (Member ID: 6706)

  • NSE Cash/F&O (Member ID: 90177)

  • DP registration No : IN-DP-418-2019

  • CDSL DP No.: 12088600

  • NSDL DP No. IN304300

  • AMFI Registration No.: ARN – 163403

Compliance officer: Bineet Jha,   Tel: +91 20 48574486; Email: compliance_sec@bajajfinserv.in For any complaints pertaining to securities broking please write to compliance_sec@bajajfinserv.in , for DP related to Compliance_dp@bajajfinserv.in , for any investor grievances write to investcare@bajajfinserv.in
Attention Investors:

"Prevent Unauthorized transactions in your Trading/Demat Account. Update your mobile numbers/email IDs with your stock brokers/Depository Participant. Receive alerts/information of your transaction/all debit and other important transactions in your Trading/ Demat Account directly from Exchange/CDSL/NSDL at the end of the day. Issued in the interest of investors.

KYC is one time exercise while dealing in securities markets - once KYC is done through a SEBI registered intermediary (broker, DP, Mutual Fund etc.), you need not undergo the same process again when you approach another intermediary."
"We understand that certain investment advisors may be approaching members of the public including our clients, representing that they are our partners, or representing that their investment advice is based on our research. Please note that we have not engaged any third parties to render any investment advisory services on our behalf nor are we providing any stock recommendations/tips/research report/advisory. Persons making investments on the basis of such advice may lose all or a part of their investments along with the fee paid to such unscrupulous persons. Please be cautious about any phone call that you may receive from persons representing to be such investment advisors, or a part of research firm offering advice on securities. Do not make payments through e-mail links, WhatsApp or SMS. Please do not share your personal or financial information with any person without proper verification. Always trade through a registered broker."

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Bajaj Financial Securities Limited (“BFSL”) is a subsidiary of Bajaj Finance Limited and is a corporate trading and clearing member of Bombay Stock Exchange Ltd and National Stock Exchange of India Ltd. (NSEIL), and also a Depository participant with National Securities Depository Ltd (“NSDL”) and Central Depository Services Ltd. (“CDSL”).

BFSL is engaged in the business of Stock Broking and as a Depository Participant. BFSL does not provide any advisory services to its clients. BFSL may share updates from time to time (through various electronic communication modes) which are sourced from public domain and the same are NOT to be construed as any advice or recommendation from BFSL. Client is requested to independently evaluate and/or consult their professional advisors before arriving at any conclusion to make any investment. The decision to invest shall be the sole responsibility of the Client and shall not hold BFSL, its employees and associates responsible for any losses, damages of any type whatsoever.

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Registered Office:

Bajaj Auto Limited Complex , Mumbai –Pune Road
Akurdi Pune 411035.
CIN: U67120PN2010PLC136026

Corporate Office:

Unit 2 , Tower B 2nd floor , Mantri IT Park ,
Opposite Inorbit Mall Nagar Road , Viman Nagar,
Pune 411014.
Telephone: +91 020-48574443,
Monday to Saturday – 9:00 AM to 6:00 PM ( Excluding 2nd & 4th Saturday of the Month),
Contact us at : connect@bajajfinserv.in