demat acount

1. ACCOUNT OPENING
What are the documents accepted for individual account opening
As per the KYC guidelines at the time of demat account opening the PAN card
copy of all the holders is required. This is a mandatory clause. Apart from the PAN
card copy, any one of the following address documents have to be attached.
Proof of new address (Any one of the following) of all the holders in the demat
account.
o Ration Card
o Copy of Landline telephone bill not more than 2 months old (not WLL or
Mobile bill)
o Electricity bill (not more than 2 months old)
o Bank passbook
o Leave and License Agreement
o Copy of Agreement for purchase of premises
o Bank attested account statement specifying new address
 The clients should Visit the branch personally and sign once again in front of a DP
official on the stamp of In person verification.
CanI submit a photocopy of the PAN card, without showing the original copy of
PAN card at the time of account opening?
As per the SEBI guidelines the client has to have at the time of account opening an
original PAN card copy with him. Thesame has to be produced at the branch at the
time of demat account opening along with the photocopy of the PAN card copy. The
account cannot be opened in case, the client is unable to produce the original PAN card
copy.
Can I open a demat account on the basis of the Letter of Allotment of the PAN
card by the income tax authorities
No. Demat account can be opened after the PAN card has been received by the client.
Can I open more than one demat account with only one DP in identical names?
Yes. You can open more than one demat account in identical names. There is no
restriction on the number of demat accounts you can open with the same/other
DP's. However all the demat accounts have to satisfy the KYC norms.
Can a depository account be opened with four holder's names?
Yes, a depository account can be opened in the names of four holders but the
account can be operated only for dematerialisation of shares held in the same
combination. This account cannot be utilized for fresh purchase of shares nor any
shares can be transferred from any other account to the 4holder account Hence the
standing instruction for credits will be 'N' for such accounts
Can I operate a joint account on "either or survivor" basis just like a bank account?
No. The demat account cannot be operated on "either or survivor" basis like the
bank account.
Can I add or delete names of accountholders (second or third accountholder) after opening the account
?
No. Names of the accountholders for a depository account cannot be changed. If you
want to change name or add / delete an accountholder, you need to open a new

2. account in the desired holding pattern (names) and transfer the securities to the
newly opened account. The old account may be closed.
What are the different categories of accounts that can be opened under an individual demat account?
The different categories of accounts that can be opened under an individual demat
account are Ordinary Resident, Hindu United Family (HUF) , Non Resident Indian -
Repatriable, Non Resident Indian- Non Repatriable, Margin , Promoter, Others
What is 'Standing Instruction' given in the account opening form?
At the time of opening a demat account with Saraswat Bank the client has given a
Standing Instruction to receive purchases automatically in his account.
This 'Standing Instruction for Credit' is given in the account opening form itself.
Thus due to this facility, a separate receipt instruction need not be submitted by the
client to get his shares credited which are purchased.
Can someone else operate my demat account on my behalf on the basis of Power of Attorney?
Yes. 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. Ensure that the POA has the signature of both you being a Donor and the
Donee
Can I open an account in a single name for shares held in joint combination of names?
No. The demat account must be opened in the same combination in which the
securities are held in the physical form. E.g.; if one share certificate is in the Joint
name of Mr. A & Mr. B and another certificate is in the sole name of Mr.A, two demat
accounts will have to be opened , one in the joint name of Mr. A & Mr. B and another
in the sole name of Mr. A. However if A & B hold a demat account and if the
certificates are in the names of B & A, the shares can be dematerialized in the demat
account of A & B.by using the Transposition form for this.
How can the holder/s change the existing debit authorisation in his demat account?
The holder can change his existing debit authorisation by submitting aduly signed
form ofChange in Account Details/request letterby all the demat account holders
mentioning the new bank number alongwith a copy of cheque leaf.
What are the different categories of accounts that can be opened under a corporate demat account?
The different categories of accounts that can be opened under a corporate demat
account are Body Corporate, Bank, Financial Institution , Foreign Institutional
Investor , Overseas Corporate Body & Others
What are the requirements for opening a corporate demat account?
Requirements:-
·Copy of Memorandum & Articles Of Association.
Office address proof.
 Board Resolution (For opening the Demat Account and the operating instructions
of this account
 Photos of the Authorised signatories along with the proof of photo identity and
proof of residence.
 .
 Companies common seal required on the Resolution copy. The common seal of
the company is also required on the DP-Client Agreement .and also on the
Account Opening form
 Introduction by existing account holder or by applicant's bank.
What are the requirements for opening an HUF demat account?
The requirements are the same as that of opening an individual demat account
except that the account will be opened in the name of the KARTA. No joint holding
and nomination is permitted in this account. In addition the stamp of the KARTA
should be affixed at all places signed by the KARTA.

3. PAN copy of both the HUF and Karta is required to be submitted. Also Coparcener’s
declaration stating the name of the Karta and their relationship to the Karta is to be
mentioned.
What are the requirements for opening a demat account in the name of a minor?
The requirements are the same as that of opening an individual demat account
except that joint holder and nominee cannot be appointed. In addition photograph of
the minor and the guardian, proof of identity and address of the guardian and the
proof of age (copy of birth certificate) of the minor is required. PAN card of the
Guardian to be provided.
CHANGE OF ADDRESS
What is the procedure for effecting change of address in an individual demat account?
The change of address can be effected in an individual/HUF demat account on
submission of the following:-
 Duly completed Change of address form signed by all the demat account
holders/Karta.
 Copy of latest DP transaction statement.
 Proof of the new address documents as per the documents approved as per KYC
guidelines(DOCUMENTS ACCEPTED FOR ACCOUNT OPENING)
 Proof of identity as per the documents approved as per KYC
guidelines(DOCUMENTS ACCEPTED FOR ACCOUNT OPENING)
What is the procedure for effecting change of address in a corporate demat account?
The change of address can be effected in a corporate demat account on submission
of the following:-
 Duly completed Change of address form signed by the authorized signatories as
per the mode of operation with the rubber stamp of the company.
 Board Resolution confirming the change of address signed by the authorised
signatories.
 Proof of address of the corporate (Document registered with ROC, acknowledged
copy of Income Tax return/ Bank Statement/ Leave & Licence agreement/ Copy
of Agreement for purchase of premises).
 Latest transaction Statement of the demat account.
 Authorised signatory to visit the DP and submit the request personally.
 Authorised Signatory to sign once again in front of the DP official.
How can the holder/s change the existing mandate/bank details in his
demat account?
The holder can change his existing mandate/bank details by submittingaduly signed
form ofChange in Account Details/request letterby all the demat account holders
mentioning the new bank number along with a copy of cheque leaf.
What is the procedure to be followed when a customer has lost/misplaced his slip/instruction booklet?
The customer has to immediately intimate the bank by submitting a letter
mentioning the details of the slip/booklet lost duly signed by all the holders and
request issuance of a fresh booklet. A "Stop Instruction" would be marked against all
the unused slips to avoid misuse of slips.
Can I freeze my account? What is the procedure to be followed for freezing / defreezing a demat
account?
Yes. The depository system provides the facility to freeze the depository accounts for
debits or for both debits and credits. The account can be freezed for the following
activities:
1.In an account "freezed for debits", no debits will be permitted from the account, till the time it is defreezed.
2.In an account which has been freezed for all operations, no credits or debits will take place.
3.An account can also be freezed for a particular ISIN or part quantity of an ISIN in an investor's account.
In order to freeze the account , the client has to fill the form for Freezing/Defreezing
the account. The duly signed demat form has to be submitted at the branch. The

4. status of the account changes from Active to, as per the choice indicated by the
client
What is the procedure to be followed if the customer wishes to change his existing signature recorded
with the DP?
The customer has to give a request letter clearly defining his old and new signature,
proof ofaddress and proof of identity of the holder wishing to change the signature .
The new specimen signature has to be duly verified by the Branch Manager. Reason
for change in signature has to be mentioned on the request letter. Latest transaction
statement of the demat account received form the DP to be enclosed.
DEMAT
What is Dematerialisation (demat)?
It is the process of converting securities held in physical form (certificates) to an
equivalent number of securities in electronic form and crediting the same to the
investor's demat account. Dematerialised securities do not have any certificate
numbers or distinctive numbers and are dealt only in quantity i.e. the securities are
fungible.
·What are the formalities to be followed at the time of dematerialisation of shares?
The client who wishes to get his demat shares converted from physical to electronic form has to submit a
duly defaced Demat Request Form(DRF) to his/her Depository Participant(DP).
Ensure that the security mentioned on the certificate is eliglible for Demat and is
listed with NSDL .You can check the eligibility at any of our nearest Saraswat Bank
branch.
The client should deface the certificates by affixing the stamp of Surrendered for
demat on the shares . This stamp is available at any of the Saraswat Bank Branches
However it is advisable to deface the certificates only after confirming the eligibility
of the shares. The list of shares available for demat is available at any of our
branches.
SeparateDRFs(Demat Request Forms)are to be filled for each company having a unique International
Security Identification Number(ISIN). All the holders should sign on the DRF. The client should sign on the
DRF exactly in the same manner as the sign registered with the Issuer or Registrar .
What is an ISIN?
ISIN (International Securities Identification Number) is an identification number
given to the security of an Issuer Company at the time of admitting such security in
the depository system by SEBI. This is common for both NSDL and CDSL.
Can I dematerialise any share certificate?
Onlythose Shares that are registered in name of the client and belongs to the list of
securities admitted for dematerialisation at NSDL /CDSL can be dematerialized.
Should a separate Dematerialisation Request Form be filled for each ISIN?
Yes.
Can I have part of my holdings in demat form and part of my holdings in the form of share certificates
for the same security?
The client can dematerialize shares of the quantity as per his choice. It is not
mandatory to dematerialize the entire quantity of shares.

5. Do my dematerialised securities have distinctive/ certificate numbers?
The important characteristic of depository is Fungibility . This means that 100 shares
of a security are the same as any other 100 shares of that security. The
dematerialized shares have no Folio number, distinctive number and certificate
numbers.
How long will the dematerialisation process take?
The dematerialisation process would normally take about 30-45 days.
If I have certificates belonging to the same security, in the same order of holders, do I have to open as
many accounts as the number of folios?
No, you can choose to have all securities deposited in a single account. The
combination of DP Id and the Client ID replaces the folio number.
Can I dematerialise all my depository eligible securities through the same account?
Yes. You can choose to have all your securities deposited in a single account provided
the securities have the same holding pattern.
Can I as a sole holder of the share certificates add one more name as a joint holder at the time of
dematerialising my share certificates?
No. However, if you want to transfer the ownership from your individual name to a
joint name, you should first open an account as the sole holder (account A) and
dematerialise the share certificates. You should then open another depository
account (account B) in which you are the first holder and the other person is the
second holder and make an off market transfer of the shares from the account A to
account B. You will have to incur a charge on this transaction. Alternatively, the
certificates can be transferred to the joint ownership and then sent for
dematerialisation.
Can I dematerialise shares, which are pledged with a bank, which is a DP as well?
Yes, you can with the permission of the bank.
How do I demat shares with Pre Marital / Maiden names?
In such cases you need to submit a certified true copy of the marriage certificate
along with the DRF, when you give your shares for dematting.
What is Rematerialisation.
It is the opposite of Dematerialisation . It is conversion of electronic shares into
physical form.
Will the investor get back the same certificates after rematerialisation?
The registrar will print new certificates with a new range of certificate numbers. The
investor will usually be allotted a new folio number.
Transmission
What do you mean by Transmission
Transmission means transfer of the title of shares to the surviving holders on account
of death of one of the holders. The person/s to whom the shares devolve, has to
prove his entitlement by submitting the appropriate documents.
What happens when the shares are held in physical form and one of the holder of the shares expires.
If the securities are held in physical form and the client wishes to demat these
holdings, then the surviving holders have to open a demat account in the name of
the surviving holder only. In case the surviving holders already have a demat
account in their names a new demat account is not required. The physical shares
have to be submitted to Saraswat Bank along with the duly signed Demat
Request Form and Transmission form (Form OB).The shares will be then send to the

6. respective companies which will be dematerialised and credited to the surviving
holders account
What happens when the sole holder of the shares held in demat form expires and there is no valid
nomination made for the account .
In the event of death of the sole holder, if valid nomination has not been made, then
the claimants /successors/legal heirs of the deceased can get the securities
transmitted in their favour ,by submitting the following documents to Saraswat Bank
along with the transmission form.
1. A copy of the death certificate, duly notarized or the Original Death certificate
2. A copy of the succession certificate duly notarised or an order of a competent
court if the deceased has not left a will OR
3. A copy of the probate or letter of Administration duly notarised.
However if the market value of the holdings in each of the account of the holdings on
the date of the application DOES NOT EXCEED Rs 1 LAC, only the following
documents are required to be submitted to Saraswat Bank:
1. A copy of the death certificate, duly notarised
2. Letter of indemnity duly supported by a guarantee of an independent surety made
on a non judicial stamp paper
3. An affidavit made on a non judicial Stamp paper
4. No objection certificates from all legal heirs
5. Proof of address, Photo Identity, Income Proof of the Surety required with Branch
verification.
What is the procedure to be followed when one of the holder of the shares held in demat form expires
If any of the joint holder of a security dies the surviving joint-holders can get the
securities transmitted in their favour by producing the death certificate of the
deceased to Saraswat Bank. The surviving holders will have to open a demat
account only in the name of the surviving holders. If such a demat account exists,
then a new account need not be opened.
Can the DRF be rejected? What are the reasons for rejection?
Yes, DRF can be rejected. The reasons for rejection (not limited to) are Signature
mismatch, Incorrect holders name, Shares not received as per DRF, Received
quantity does not match with the quantity mentioned in DRF, DRF sent to wrong
registrar, rejection due to technical reasons i.e. wrong account numbers, DRF not
signed by all holders, duplicate certificates have been issued, fake certificates, court
order prohibiting transfer etc.
What is the action to be taken in case the DRF is rejected due to "Signature Mismatch"
If the DRF is rejected due to "Signature Mismatch", then either the holders need to
sign as per their signatures recorded with the registrar as well as with their DP or the
signatures have to be notarised/attested (preferably by an entity other than the
Depository Participant).
What is transposition?
Transposition is the change in order of names in which the certificates are issued.
Can electronic holdings be converted back in certificate form?
Yes, it can be done through 'Rematerialisation' Rematerialisation is a process by
which a beneficiary can convert the electronic balances in his account into physical
share certificates. On Remat the Investor will get new certificates with new folio and
certificate number. This entire Remat procedure normally takes 30-45 days
depending on the Company.

7. DELIVERY INSTRUCTIONS
What are Market transactions?
An instruction for transfer of security from beneficiary account(investor accounts) to
a clearing member account (broker account)is termed as market trade. If a client
wishes to transfer shares on account of transaction done on the stock exchange, he
has to fill the Saraswat Bank delivery instruction slip column meant for market trade
and cancel the column of offmarket trade.
What are Off market transactions?
An instruction to transfer security from one Beneficiary Account to another
Beneficiary Account is termed as off market transfer. For this the client has to use
the Saraswat Bank delivery instruction slip and fill in the column meant for off-
market trade and cancel the column of market trade.
What is 'execution date' given in the delivery instruction form?
This is the date on which the shares are transferred from the account . Incase
of market trades this is a very crucial date and the execution date has to be
necessarily before the pay-in date of the stock exchange. Please note that any
instruction submitted after 4 PM on a particular day with execution date of the next
day is accepted only on a 'Best Effort Basis' without any risk or responsibility on the
part of the bank in case of non-execution of the instruction. The delivery instructions
accepted at the branch for the same day execution, will be stamped ‘SAME
DAYEXECUTION.ACCEPTED AT CLIENTS RISK’. In addition to this stamp all the
delivery instructions accepted in the morning of the date of pay-in, will be charged a
late fee of Rs 50/- per ISIN with a minimum of Rs 100/-per ISIN.
What is an 'Inter Depository' transaction?
Any transaction between two clients not having demat accounts with the same
depository is termed as an 'Inter Depository' transaction.
·What is the procedure for getting Personalised Delivery Instruction Books?
You are provided with a Personalised Delivery Instruction Book within a week’s time of opening the demat
account. The slips from this booklet should be used for transfer of shares. In case you are nearing
exhaustion of the slips in the booklet, you can request for a new booklet by submitting to the nearest branch
the requisition slip in the booklet. The requisition has to be signed by all the holders. The request will be
couriered to your residence directly in 7-8 days.
·What is the significance of DP ID in the delivery instruction slip?
This is the DP Id of the client, to whom the shares to be transferred, is maintained. This is a 8 digit number
always beginning with IN. It is very crucial to mention the right DP Id. Wrong DP Id could lead to transfer of
shares to the wrong client. In case the shares are to be transferred from one demat account maintained with
Saraswat Bank to another account maintained with Saraswat bank ,then the DP ID would always be
IN300829.
NOMINATION
What is the procedure for nomination?
The nomination form duly filled-in should be submitted either at the time of account
opening or later. The account holder, nominee and two witnesses must sign this form
and the name, address and photograph of the nominee must be submitted.
How many nominees can be appointed?
Only one person can be nominated irrespective of the fact whether the demat
account is held singly/jointly.

8. Can the nominee be changed?
Yes, the account holder can change the nomination anytime by simply filling up the
nomination form once again and submitting it to the Depository Participant. The
account holder, nominee and two witnesses must sign this form and the name,
address and photograph of the nominee must be submitted. In case of joint holders,
all joint holders must sign.
Who cannot nominate?
Non-individuals including societies, trusts, body corporates, partnership firms, Kartas
of Hindu Undivided Family, minor, holders of power of attorney cannot avail of
nomination.
Can a minor be nominated?
A demat account holder can nominate a minor, represented by one guardian.
However the guardian should not be a holder of the same demat account.
Can an NRI be appointed as nominee?
Both resident Indians as well as NRI's can nominate an NRI, subject to exchange
control regulations in force from time to time. Similarly, an NRI can nominate a
resident Indian or another NRI.
Pledge
What is meant by Pledge of securities?
Beneficiary Account holders who do not want to sell their shares but wish to avail of
advances against dematerialised shares can take loans by marking pledge/lien
against those shares. There are two parties involved under pledge, Pledgor
(borrower) and Pledgee (lender). Certain set procedures need to be followed in case
of a pledge transaction
Can I pledge dematerialised securities?
Yes. In fact, pledging dematerialised securities is easier and more advantageous as
compared to pledging physical securities.
What should I do if I want to pledge electronic securities?
The procedure is as follows:
There are two parties involved under pledge, pledgor (borrower) and pledgee
(lender).
The pledgor and pledgee are required to initiate creation and confirmation of
Pledge by submitting Form W.
Where the DP of the pledgor and the pledgee is different, pledgee's acceptance or
rejection is communicated electronically to the pledgor's DP.
Once the loan is repaid the pledgor is required to initiate closure request to his DP
. The pledged status will change to free balance once the pledgee confirms the
repayment of the loan and confirms closure of pledge through their DP.
Where the pledgor has defaulted in the repayment of loan, the pledgee may
invoke the pledge in its favour.
The process of creation and closure of pledge is simplified and expeditiously done
as the client maintains a Depository account.
What is meant by unilateral closure?
All the pledge closures for which the loan has been availed from Saraswat Bank can
be closed on unilateral basis .i.e for closure of such a pledge the borrowers signature
on the pledge closure form is not required
Who will receive corporate action benefits on the pledged securities?
Inspite of the shares being in the pledged status, the beneficiary will be entitled to
corporate benefits offered by the companies from time to time.

9. Can locked-in securities be pledged?
Yes. Locked-in securities can be pledged.
How is a pledge invoked?
In case of default by the pledgor, the pledgee can unilaterally invoke the pledge by
issuing instructions to his(pledgee's) DP in the prescribed format. On execution of
this instruction, the securities are transferred into the pledgee's account. This does
not require any confirmation from the pledgor.
Miscellaneous
Is it possible for me to get securities allotted to me in public offerings directly in dematerialised form?
Yes. In fact, in the public issue application form of depository eligible companies,
there will be a provision for you to indicate the manner in which you want the
securities allotted to you. All you have to do is to mention your demat account details
i.e. DP Id , DP Name, Client Id and the names of the account holders and any
allotment due to you will be credited into your account.
If I am allotted securities in dematerialised form, but the details regarding my beneficiary account are
incomplete/ wrong, will I get physical delivery of allotted securities?
Yes, securities would in such a case be dispatched in the physical form.
If I am allotted securities in dematerialised form, when will I get the electronic credit in my account?
If securities are allotted in the dematerialised form, these would be credited to your
account any day between allotment date and listing date, at the discretion of the
company.
How will I come to know that my application for public issue in electronic form has been accepted?
The issuer company/ their R & T agent will forward you the allotment advise giving
the number of shares allotted in dematerialised form.
What are corporate benefits?
Benefits accruing to the shareholders in the nature of dividends bonus etc are
generally referred to as corporate benefits.
How will I receive dividend/interest, if any, on the securities I am holding?
The company/R&T Agents will distribute dividend, interest and other monetary
benefits directly to the client, if the shares are in demat form, on the basis of the
particulars of the holdings of beneficial owners received from NSDL on the cut off
date. If the company is making the payment through ECS, the company will directly
credit the dividend to the bank account, which is registered by the client with the
DP. If the company is making the payment through cheque, the bank details will be
printed on the warrant. The mode of payment of the dividend etc is decided by the
company.
·If I have holdings in dematerialised form, will the bonus/ rights issue against this be in the same form?
In case of bonus allotment by the company, the clients holding the shares in electronic form, will directly
receive credit in their demat account. Intimation to that effect would be send by the company/ Registrar to
the client.
What happens to the bonus ifyou hold shares in physical form and some others in demat?
If you hold some shares in physical form and some others in demat, you will receive
the bonus/rights shares in both the forms in proportion to the holdings in each form.
When will I receive the Transaction Statements?
Statement of Account which includes Holdings, Transactions and Pending Demat

10. status is send to the account holders every month ( if there are transactions in the
account.) If there are no transactions, statement of Holdings will be sent quarterly.
Statement of Account is sent to the clients also through Email where the client has
registered for the same
To which address are Depository statements sent?
The Depository statements are sent to the correspondence address furnished with
respect to the depository account. There is an option to the client to state his local as
well as his correspondence address. The correspondence address should also have all
the KYC related documents.