Benefits of a Joint Demat Account
Posted: Feb 04, 2020
A demat account is the electronic equivalent of a bank account but for shares and securities. A demat account holds all your financial instruments at one place in electronic form. It is much safer and convenient than maintaining the securities in a physical form. It saves you from the hassles of maintaining paper records.
There are two depositories in India, namely the Central Depository Services (India) Ltd. (CDSL) and the National Securities Depository Ltd. (NSDL). You can open a demat account with either of the depositories through depository participants (DPs).
Before we understand the process of demat account opening, let us first understand its benefits. So, here are the benefits of opening a Demat account as below:Benefits of a Demat Account
The very first and foremost advantage of a Demat account is that shares and securities are recorded virtually and, thus, can be bought and sold seamlessly.
No physical transfer of documents is involved, thus preventing theft or forgery. This is another advantage of a Demat Account.
Users can access their shares from any place with just a stable internet connection.
There are a lot more benefits of opening a Demat Account.
A joint demat account is one where you, along with a family member(s), can operate a single demat account. The process of such a demat account opening can be done either together or through a power of attorney.
The main benefit of opening a joint demat account is the savings in cost associated with maintenance charges as maintaining separate accounts for each family member, which again may be indirectly managed by one person, adds up in annual maintenance costs.
In such cases, you can alternatively maintain a joint demat account that can be operated by either of your family members and save up on annual maintenance costs.Steps to open a Joint Demat Account Online
Select a depository participant (DP) of your choice. Your bank may offer this facility too so enquire with them first before applying to open a Demat account.
The application form needs to be filed along with the necessary KYC documents. Keep your identity documents such as PAN card, address proof, etc., handy in soft copy.
Sign the application form and upload the requisite documents. Note the type of the Demat account you wish to open, either joint or single.
Nomination details should be clearly mentioned in your application details.
The application form so submitted shall be verified and login details will be sent to the registered email ID.
In the case of the death of any of the account holders of a joint demat account, the ownership gets transferred to the remaining owners. The nominee receives the benefits if all the holders cease to exist
An annual charge is levied or say, charged to maintain your demat account irrespective of the number of transactions
The transaction fee is levied by the DP for every transaction
Closure of a demat account does not attract a cost
These are some of the benefits of having a joint demat account. You can always enquire with the DP of your choice to know more about the benefits and features they offer.
I am a blogger and I love to write. Writing exists in my soul. I write in almost all types of niches. I am passionate about writing.