Demat Account related FAQs

Are there different categories of Power of Attorney?

Yes, power of attorney (PoA), could be granted for the following:

  1. Specific or limited purpose PoA
  2. PoA for general purposes

The broker is granted limited power of attorney to demat account for the following two purposes:

  1. Transfer of securities to margin purposes (When you pledge shares for margin against shares).
  2. Settlement of trades through stock exchanges that are recognized, i.e. BSE, NSE (when selling shares)

The PoA general purpose is typically given to your family members to manage your demat account for you. This allows you the same access to your account that you have.

Is it necessary to have an demat account to apply in an IPO?

How securities can be transferred from one account to another?

Can I apply in an IPO if I don't have a Demat account?

On Demat account how much interest is given?

What maintenance charges are there for a demat account? Is there any processing fees or hidden charges on transactions I make on a demat account?

If I don't hold any share in my demat account, do I need to pay any annual maintenance charge

Can a person keep more than one demat account with same name?

Can a minor open a demat account?

Diffrenciate between Demat account number and Trading account number?

What are NSDL & CDSL?

Is a minor eligible to open a trading account?

Define Depository.

Define Depository Participants.

What does Dematerialisation process mean?

What are the benefits of holding shares in a demat account? Is it mandatory for all investors to open a Demat account in order to trade on the stock market?

How many demat account can a trader open?

In Demat account is there any nomination facility?

For any update in my personal details do I need to contact all companies?

What do I need to do with transaction statement, If I don't do trade on a regular basis?

How can I get help if I have any issue with my NSDL Demat account?