1. You mentioned that I would have to open an account with a DP if I want to
participate in the depository. Who is a DP?
NSDL provides its services to investors through its agents called depository
participants (DPs). These agents are appointed by NSDL with the approval of SEBI.
According to SEBI regulations, amongst others, three categories of entities i.e. Banks,
Financial Institutions and Members of Stock Exchanges [brokers] registered with SEBI
can become DPs. You can get a list of DPs from NSDL's office or
from our website at www.nsdl.co.in
2. How do I select a DP?
You can select your DP to open a demat account just like you select a bank for opening
a savings account. Some of the important
factors for selection of a DP can be:
3. Whether all the DPs are same?
- Convenience - Proximity to your office/residence, business hours.
- Comfort - Reputation of the DP, past association with the organisation,
whether the DP is in a position to give the specific service you may need?
- Cost - The service charges levied by DP and the service standards.
In order to obtain the complete list of DP locations and their comparative
charge structure, you may log on to www.nsdl.co.in or
else you may write to NSDL for the same.
All the DPs are appointed subject to fulfilment of uniform requirements of SEBI
( Depositories and Participants) Regulations, 1996 and requirements of NSDL. However,
the type of services offered and the service standards may differ among various DPs.
For example, a DP branch having direct connectivity with the main office
having depository set-up may be in a position to execute instructions faster
4. Whether all the DPs are same?
You can approach any DP of your choice and fill up an account opening form.
At the time of opening an account, you have to sign an agreement with
the DP in a NSDL prescribed standard agreement, which details your and
your DP’s rights and duties. You have to submit the following with the
prescribed account opening form. In case you want to open account jointly
with other person(s), following should be submitted for all the account holders.
5. Can I open more than one account with the same DP?
Proof of Identity (POI) (copy of any one proof):
- Ration card
- Voter ID Card
- Driving license
- Bank passbook
- Verified copies of Electricity bills
(not more than two months old)/ Residence Telephone bills
(not more than two months old)/ Leave and License agreement
/ Agreement for sale.
- Self-declaration by High Court & Supreme Court judges, giving the
new address in respect of their own accounts.
Identity card/document with address, issued by
Central/State Government and its Departments,
Public Sector Undertakings,
Scheduled Commercial Banks,
Public Financial Institutions,
Colleges affiliated to universities
(this can be treated as valid only till the time the applicant
is a student); and
Professional Bodies such as ICAI, ICWAI, Bar Council etc.,
to their Members.
- Passport-size photograph.
Copy of PAN Card.
You must remember to take original documents to the DP for verification.
Your DP will carry-out “in-person verification” of account holder(s) at the time
of opening your account. You should remember to obtain a copy of the agreement
and schedule of charges for your future reference.
NOTE : Your DP may ask an additional proof of identity/address.
Can I open more than one account with the same DP?
6. Am I restricted to having account with only one DP?
No. There are no restrictions on the number of DPs you can open accounts with.
Just as you can have savings or current accounts with
more than one bank, you can open accounts with more than one DP.
7. Do I have to keep any minimum balance of securities in my account with my DP?
No. The depository has not prescribed any minimum balance.
You can have zero balance in your account.
8. Can I open a single account for securities owned in different ownership patterns
such as securities owned individually and securities owned along-with my wife ?
No.The demat account must be opened in the same ownership pattern in which the
securities are held in the physical form. e. g. if one share certificate is in your individual
name and another certificate is jointly held in your and your wife's name, two different
accounts would have to be opened.
9. What do I do if I have physical certificates with the same combination of names,
but the sequence of names is different. i.e. some certificates with husband as
first holder and wife as second holder and other set of certificates with wife as
first holder and husband as the second holder?
In this case you may open only one account with husband and wife as the account
holders and lodge the security certificates with different order of names for
dematerialisation in the same account. You will fill-up an additional form called
" Transposition cum Demat" form. This would help you to effect change in the order
of names as well as dematerialise the securities.
10. Can someone else operate my account on my behalf on the basis of a
power of attorney ?
If you authorise any person to operate your account by executing a power of
attorney and submit it to your DP, that person can operate the account on your behalf.
11. Why should I give my bank account details at the time of account opening?
It is for protection of your interest. Your bank account number will be mentioned on the
interest or dividend warrant, you are entitled to, so that such warrant cannot be
encashed by any one else. Further, a DP cannot open the account if bank account
number is not given.
12. Can I change details of my bank account?
Since in the depository system monetary benefits on your security balances are
paid as per the bank account details provided by you at the time of account opening,
you must ensure that any subsequent change in bank account details is informed to
your depository participant.
13. What is 'Standing Instruction' given in the account opening form?
In a bank account, credit to the account is given only when a 'paying in' slip is
submitted together with cash/cheque. Similarly, in a depository account 'Receipt in'
form has to be submitted to receive securities in the account. However, for the
convenience of investors, facility of 'standing instruction'
is given. If you say 'Yes' for standing instruction, you need not submit
'Receipt in' slip everytime you buy securities.
14. Can I operate a joint account on "either or survivor" basis just like
a bank account?
The demat account cannot be operated on "either or survivor" basis like
the bank account.
15. Can I add or delete names of account holders (second or third account holder)
after opening the account ?
Names of the account holders for a depository account cannot be changed.
If you want to change name or add / delete an account holder, you need to open
a new account in the desired holding pattern (names) and transfer the securities
to the newly opened account. The old account may be closed.
16. What should I do if my address is changed? Do I need to write to each
In case your address is changed, you only need to inform the new address to your
DP(s). When DP enters the new address in the depository computer system,
it will be automatically conveyed to all companies in which you hold shares.
17. Can I close my demat account with one DP and transfer all securities to
my account with another DP ?
You can submit account closure request to your DP in prescribed form.
Your DP will transfer all your securities, as per your instruction, and close your
18. What would be the charges for account closure and securities transfer
due to account closing?
The charges would be as per the schedule of charges of your DP, agreed by you at
the time of account opening or any subsequent changes therein.