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Frequently Asked Questions About Demat Account

Investing in stocks is the best way to grow your money. But you need a demat account first. If you are wondering how to open a demat account, here are the answers you need.

Can I open a demat account with the depository?

No, you cannot. You can only open the demat account with a depository participant (DP) of the depository.

Related: Why every Indian must have a demat account

How do I open a demat account?

  • Select a DP and fill out a demat account opening form.
  • Submit the form to the DP along with the required documents and a passport-sized photograph.
  • Carry all original documents for verification by a DP member.
  • You have to sign an agreement with the DP.
  • An in-person verification will take place next.
  • Once the demat account is opened, you will receive the account number.

Can my demat account have joint holders?

Demat accounts can have up to three joint account holders. One is the primary holder and the other two are joint holders.

Related: Features of demat account

Can a trust open a demat account?

A trust can open a demat account if it is registered under one of the following:

  • The Public Trust Act in force in the relevant state
  • The Public Trust Act, 1860
  • Societies Registration Act
  • Bombay Public Trust Act

Can a Hindu Undivided Family (HUF) open a demat account?

No, it cannot. But it may open one in the name of the karta (head of the family).

Is nomination necessary for demat accounts?

The SEBI has made it mandatory for demat account holders to have a nominee. If you do not want a nominee, you must sign a declaration stating so.

Related: Demat account for minor

Can I have multiple demat accounts?

Yes, you can.

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