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Demat and Remat
Demat and Remat
Demat and Remat
DEMATERIALISATION(DEMAT)
Dematerialisation is the process of converting physical shares (share certificates)into an electronic form. Shares once converted into dematerialised form are held in a Demat account.
TRADE FLOW
DESPOSITERY
A bank or company which holds funds or securities deposited by others and where exchanges of securities take place There are two types of depositories in India. i. (NSDL)National Securities Depository Limited ii. (CDSL)Central Depository Service Limited.
DESPOSITORY PARTICIPANTS
Depository Participant (DP) is described as an agent of the depository. They are the intermediaries between the depository and the investors.
CDSL NSDL
SBI
HDFC BANK
YOU THE CUSTOMER
ICICI DIRECT
ANGEL BROKING
DEPOSITORY
Hold securities in an account.
Facilitates transfer of ownership without having to handle securities. Facilitates safekeeping of securities.
Step1- Investor surrender the physical certificates to the DP for approval. Step2- DP informs the depository about the request. Step3- DP forwards the certificates to the registrar of the issuer company. Step4- Registrar communicates with the depository to confirm the request. Step5- Accounts are updated by the registrar and depository and then DP is informed about the same.
REMATERIALISATION(REMAT)
The process of getting the securities in an electronic form, converted back into the physical form is known as rematerialization. An investor can rematerialise his shares by filling in a Remat Request Form (RRF).
Step1- Investor makes request for rematerialiasation to the DP. Step2- DP informs depository about the request. Step3- Depository confirms the request to the registrar of the issuer company . Step4- Accounts are updated by the registrar and details are provided to the depository. Step5- Investor receives the updated certificates from the registrar.
CONT.
Documents to be attached
Passport size photographs Proof of residence (POR) -Any one of Photo Ration Card with DOB /Photo Driving License with DOB /Passport copy / Electricity bill /Telephone bill Proof of identity (POI) -Any one of Passport copy / Photo Driving License with DOB / Voters ID Card/ PAN Card / Photo Ration Card with DOB PAN card
CHARGES INVOLVED
There are five major charges usually levied on a demat account. All the charges vary from DP to DP. I. Account opening charges II. Annual maintenance charges(folio) III. Custodian charges IV. Transaction charges V. Brokerage charges
HDFC Securities
RS799 RS499
Angel Broking
RS390 RS300 (1ST YEAR FREE) 30p (delivery) 6p (intra-day) IE 6.0+
ICICI Direct
RS975 RS500/450 (paper/email statements) 0.55% (delivery). 0.05% (intra-day) IE 5.5+ , NN 4.7 and FF 2.0+
0.5% (delivery). 0.05% (intra-day) IE 5.0+, NN 8.1+ and FF 1.5+ 1-800-209-9700 Online, phone, branch
FINDINGS
Maximum broking firm charges rs500 for opening demat accounts. Credit limit varies customers to customer, even with intraday and on delivery basis. Average investment charge by all the broking firms is 18% Annual maintenance charge is between 250 to 500.
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