Investments have long been touted as a good way to utilise excess funds. While that is a universally acknowledged fact, the manner of investments and the instruments on which to invest are hotly debated topics.
Many people recommend investing in instruments, such as equity shares or mutual funds which can potentially offer high returns but are also risky. Other investors prefer placing their money into securities or creating fixed deposits, which offer comparatively lower returns but are more secure.
Regardless of the instrument you choose to invest in, a demat account is an essential requirement for trading. The demat, or dematerialised, account is the best way to electronically organise your different investments and keep an eye on them. A demat account goes a long way in making everyday trade a comfortable activity which you can easily keep an eye on from the comfort of your sofa and through your phone.
While you can utilise the services of any bank to open a demat account, the primary depositories who hold demat accounts in India include the National Securities Depository Limited (NSDL) and the Central Depository Services Limited (CSDL). There are several details you are required to provide in order to open a demat account and begin trading through it.
The eligibility criteria for opening a demat account in India is actually quite lenient. For instance, there is no minimum age limit for investors wishing to trade and open a demat account for the same. If you are a minor, you can even ask your parents or a legal guardian to open a demat account for you. The KYC procedure for opening your demat account will only require you to submit documents to prove your identity, your address, and proof of income. Once you have provided these details, your brokerage firm will verify the details and your demat account will be opened. A client ID will be provided to you which you will need to conduct all your trading transactions.
A demat account is also easy to operate, and offers quite a lot of flexibility to the trader. You can customise it according to your requirements and even make changes later. For instance, name change in demat account is a request that comes up quite frequently. There are several reasons why a person might want to change the name on their demat account. This could include taking their partner’s last name after marriage, or for getting their official name changed for any number of reasons. Read on below to learn how to change name in demat account, depending on the scenario.
- Obtain a form for change of name from the broker or brokerage firm.
- Fill out the details required and sign the form before submission
- Share self-attested copies of your KYC documents such as your PAN Card.
While the above steps are usually common in terms of the process for name change in demat account, there are several other documents you might be required to submit in case your name changes, depending on the scenario. Given below are the different scenarios in which the account holder’s name might change, and how to change name in demat account based on the scenario.
- If your name changes due to reasons of marriage:
- It is mandated to submit a notarised copy of either the marriage certificate or the divorce certificate, depending on the event that has occurred
- It is also required to submit a scanned copy of the passport which displays either the husband’s or father’s name
- You could also be asked to submit the notarised copy of your official name change announcement, as published in the gazette
- If your name is changed due to any reasons, aside from marriage:
- A notarised copy of the name change announcement, as carried in the official gazette, needs to be provided
- If your name needs to be changed as per your father’s name having officially changed:
- It is necessary to provide a notarised copy of the announcement made in the official gazette, regarding the change in name.
If you are able to submit all of these documents, along with the self-attested PAN card and name change form, your brokerage firm will be able to process the change in name. It is important to note that the client ID issued to you at the time of opening the demat account will not change, but the name issued to the account will.
In case of any confusion, it is best to reach out to your brokerage firm and ensure that you are going about the process in the right manner.
A demat account, as demonstrated above, can be operated with maximum ease and comfort. Having a demat account makes it convenient for people to trade from anywhere at all and at any time at all.
There are several other benefits offered by a demat account which make it extremely easy to trade at all times. Read on below to learn the benefits of trading through a demat account with a trusted and efficient brokerage firm.
With a demat account, you are constantly able to keep an eye on your investments and take quick action in case it is required. The stock market, especially, is a volatile market and it is necessary to stay on your toes while trading in it. Thus, with a demat account, you can remain on the go and be able to keep an eye on your trades at all times.
Save costs on stamp duty:
Stamp duty is a cost that has to be borne by all investors while trading. However, with a demat account, you are not required to pay stamp duty on the investments and transactions you conduct. Securities and Exchange Board of India (SEBI) has mandated that no stamp duty is to be charged on the transfer of securities while they are in the electronic format, as in a demat account.
A lot of investors liquidate their investments in order to be able to get money quickly and easily in case of financial emergencies. With a demat account, it is much faster and simpler to liquidate your shares and get your funds deposited into your account.
A demat account makes life simpler for a lot of investors. Name change in demat account is among the ways in which a demat account can be changed to cater to your requirements. Trading, in general, can be simplified through a demat account with a trusted brokerage firm.