If you are thinking of investment in the securities market of India, you have to open an account for trading. Trading account enables buying and selling of market securities as well as execution of all your trades in the share market. One other account is also needed which is known as demat account which enables you to hold the corresponding securities in electronic form. Hence, if you have the intention of investing in share markets, you need to open a demat account as well as a trading account along with it.
Investors cannot jointly open a trading account. A trading account can be opened only against one single name. The fact stating that each trading account gets linked with the individual PAN number of the investor is to be attributed for this.
Individual investors are however able to open joint demat accounts. Any demat account may have a maximum of three account holders out of which one would be the main demat account holder while the remaining two are to be joint demat account holders.
How to Open a Joint Demat Account Online?
- Step 1: To open a demat account online, you need to approach any one of the DP (depository participants) for opening the demat account. You can also open the demat account through your bank as well as agencies for stock broking.
- Step 2: The form of application has to be downloaded from the respective website along with other needed documents like form for ECS mandate, KYC document etc. Also be prepared with soft copies of PAN card, address proof and identity proof documents as well.
- Step 3: Provide with your signature when you fill the form at all the necessary and specified places. Then upload all the forms and continue to proceed to the application of your demat account online. While filling the form you must make sure that the type for demat account is selected as per requirement (either joint or single). Specify regarding the details about the nominee clearly.
- Step 4: Once the verification is done successfully for your application, a number for your demat account along with the credentials for online login will be provided to you . In case any issue is faced by you during the process, call the number for customer care to get any clarifications about the same.
Documents Required for Opening a Joint Demat Account:
- PAN Cards for all the account holders (except for the individuals discharged from obtaining their PAN (which is listed in the Section D), this is a mandatory requirement towards all investors.
- Aadhaar Cards for all the account holders
- Photograph in passport size for all the account holders
- Personalized cheques that are cancelled from all the account holders (alternatively bank statement of more than three months is also acceptable)
- Once all of the document requirements for demat account are fulfilled and are duly submitted, the respective account will get closed within a period of five working days.
In the case of a joint account for demat, in the instance of death of any of the account holders, the ownership is to be shifted in the name of remaining account owners. In case that everyone dies, the nominee would then get all of the benefits.
Conclusion
Keeping the above points in mind, you can make an informed call on opening a Demat account according to your needs.
Related Articles: How to Open a Demat Account Without a Broker | Factors to Keep in Mind While Opening a Demat account | Factors to Consider When Opening a Demat Account | 10 Points to Remember When Operating your Demat Account | Types Of Demat Account & Trading Account