Investors must ensure that their demat account information is always up to date, especially when there are changes in KYC (know your customer) details. Any modification in address, last name, contact information, nominee or bank account should be promptly update with the depository participant to remain compliant with regulatory requirements.
Maintaining accurate details also ensures smooth communication between investors and their depository participant (like NSDL or CDSL), reducing the chances of delays in transaction or processing issues. An updated profile also helps in hassle-free execution of investments and trading activities across various capital market instruments.
What is a demat account?
A demat account allows investors to hold shares and securities in electronic form through dematerialisation, making trading and ownership easier, safer and more efficient. Like a bank account, it records all transactions as credits and debits and can hold a range of instruments such as , mutual funds, ETFs, bonds, and government securities.
You are also allowed to maintain a zero balance in your account, meaning you don’t have to possess any shares to keep an account active.
How to open a demat account?
An investor can easily open a demat account through a depository participant by following these steps:
Step 1: Choose a depository participant (DP) with whom you would like to open a demat account. Many banks, non-banking financial companies (NBFCs) and brokerage firms also offer demat account services in association with DPs.
Step 2: Fill an account opening form and attach a passport-sized photograph along with photocopies of the required documents stating proof of address and identity. You should have a PAN card and original documents for verification.
Step 3: The DP will give you a copy of the rules and regulations, the terms of the agreement and necessary charges that you need to pay.
Step 4: Then in-person verification will be done, where a representative of the DP would contact you to ensure the details provided in the form are correct.
Step 5: After processing of the application, you will get an account number/client ID from the DP, which will be required to access demat account online.
Once the processing is done and you become a demat account holder, you will have to pay an annual maintenance fee to maintain your account. Additionally, you would also have to pay a transaction fee for transactions via the demat account.
How to update personal details in a demat account?
Basic details such as address, registered email ID or phone number can be easily updated easily by investors using the prescribed forms provided by the depository participant of a broker. These forms are easily available on the DP’s official website and can be submitted after filling in the required details for processing the update.
Additionally, DPs like NSDL and also provide easy options through their websites to change details in demat accounts. To do so, investors need to fill in details such as DP ID, client ID and PAN number to login into the demat account. Once verification is done, the account holder can make the necessary changes.
Here are some ways of updating specific details:
- Update nominee details: This can be updated or changed at any time by submitting a simple nomination form to the DP or using the route like mentioned above. After verification through one-time password (OTP), the account holder can add or modify a nominee or choose the ‘opt out’ option if they don’t want to add anyone.
- Update name or surname: A demat account holder is required to submit a notarised copy of the name change as published in a national newspaper or official gazette. If there a change surname post marriage, then documents such as marriage certificates has to be produced for verification.