Opening a Demat account is very simple. The investor must approach a Depository Participant (DP) of his choice, registered either with Central Depository Services Limited (CDSL) or the National Securities Depository Limited (NSDL)and open a Demat Account in his name. A DP registered with either of these two depositories gives credibility to your Demat account.
Having a Demat account provides the following advantages:
Paperless transactions
Easier management of shareholders
Convenient share handling
Improved security for stocks
Transfer happens almost immediately, reduces time-lag.
Transparency in transactions.
Though Demat has been predominantly used ever since its introduction in 1996, it has now become the need of the hour. Owing to the Securities Exchange Board of India (SEBI) Notification, which states that from 1st of April, 2019 no transfer of physical shares can be made both at stock-exchanges and off market, except for transmission and transposition.
Hence, if you or your kin have shares in physical form, and if one wishes to have them sold or transferred, the same is plausible only when the shares are in Electronic form.
As simple as it may seem, the opening of a Demat Account and submitting the shares to the DP, the process has its own set of hinderances – be it a small spelling mistake in the name of the shareholder(s) as printed in the physical shares or change in signature of the shareholder, due to passage of time, each scenario has to be differently dealt with.
Well, we at Goldenegg expertise in all of them. SO, HAVE PAPER SHARES AND WANT THEM CONVERTED? REACH OUT TO US.
