Indiabulls is a depository participant with the National Securities Depository Limited and Central Depository Services (India) Limited for trading and settlement of dematerialised shares. Indiabulls performs clearing services for all securities transactions through its accounts. We offer depository services to create a seamless transaction platform – execute trades through Indiabulls Ventures Limited and settle these transactions through the Indiabulls Depository Services. Indiabulls Depository Services is part of our value added services for our clients that create multiple interfaces with the client and provide for a solution that takes care of all your needs.
A dematerialized or demat account is an account which holds the shares you purchase in an electronic or dematerialized form. Just like a bank account holds your money, a demat account holds your financial certificates of instruments like bonds, shares, government securities, mutual funds, and exchange-traded funds.
The process to open a demat account in India is simple. Demat account services are provided by depositories. In India, there are two depositories, National Securities Depositories Limited (NSDL) and Central Securities Depositories Limited (CSDL). These depositories provide the services through intermediaries, a depository participant or a broker.
Yes. It is possible to open more than one demat account under the same name. You can open the account with the existing Depository or can choose a different depository.
Every time you open a new account you have to give the KYC details.
For online demat account opening you need to have the following documents:
Proof of identity, address, income, bank account, PAN Card, passport size photographs.
No. A demat account does not require a minimum balance. You can also open a demat account without any shares.
You can transfer the shares either manually or online.
In case of manual sharing, you need to keep in mind that the shares are held by a depository. If the new and existing brokers are associated with the same depository, then it will be an Intra-depository transfer also known as the off-market transfer. In case of brokers being from different depositories then the transfer will be an Inter-Depository transfer.
When your demat account is opened, you receive a letter from the depository which includes all the details regarding the demat account. The account number is also known as Beneficiary Owner ID.
The number of digits may differ based on which depository your account is from. In case of a CSDL, the account number will have 16 numeric digits. Whereas in case of NSDL the number will start with the letters ‘IN’ followed by 14 numeric digits.
To link your demat account to your Aadhar, you need to visit the NSDL website. You will find a link named ‘Aadhar Number to Demat Account’. Enter the name of your depository, their ID, client ID, and PAN details. Next, enter the OTP password received. Now you enter your Aadhar details in the new link. You will receive an OTP on the Aadhar registered number. Click on submit after entering the OTP.
Market trade is where a clearing corporation is involved in the trade settlement. Off Market Trade is where the settlement is done directly between the two parties in question with the clearing corporation.