Demat Account related FAQs

How can someone safeguard their Demat account with power of attorney to broker?

You grant power of attorney (PoA of the Demat Account) to your broker. This gives you access to any transaction that he makes on your behalf. This is a risky decision. Online stock trading is dependent on the PoA. It facilitates seamless transactions between your trading account and your demat account.

There are a few things you can do to protect your PoA demat account.

  1. A demat account is not necessary if you're not involved in delivery trades. You don't need to grant power of attorney to the broker even if you have demat accounts.
  2. Both the Broker (depository participant), and CDSL/NSDL/depository (depository), send instant alerts, statements and documents via SMS and email for all demat transactions. They should be checked carefully each time.
  3. You can open several Demat accounts as mush as you wish. You can open another detail account with the same broker if you don't want to give your broker access to certain holdings. You or your broker can deposit shares in this account, but they cannot be withdrawn.
  4. If you don't need the PoA, you can revoke it. If you don't need the PoA, close your demat account.

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?