What is demat ?and what is DP?
Answers: Demat a/c is short for "Demateralized a/c" i.e. the holding of shares in an electronic form rather than in physical form (Paper). The electronic holdings are reflected in an online account usually held with a DP or a "Depository participant" - which is an institution authorized by a depository to act on its behalf.
Happy Investing!
Have you decided to buy shares this year?
First, open a demat account.
Let's tackle a few questions that come to mind.
What's the difference between a depository and a depository participant?
A depository is a place where the stocks of investors are held in electronic form.
The depository has agents who are called depository participants (DPs).
Think of it like a bank. The head office where all the technology rests and details of all accounts held is like the depository. And the DPs are the branches that cater to individuals.
There are only two depositories in India -- the National Securities Depository Ltd (NSDL) and the Central Depository Services Ltd (CDSL). There are over a 100 DPs.
What's a demat account?
Demat refers to a dematerialised account.
Just as you have to open an account with a bank if you want to save your money, make cheque payments etc, you need to open a demat account if you want to buy or sell stocks.
So it is just like a bank account where actual money is replaced by shares.
You have to approach the DPs (remember, they are like bank branches), to open your demat account.
Let's say your portfolio of shares looks like this: 40 of Infosys, 25 of Wipro, 45 of HLL and 100 of ACC.
All these will show in your demat account.
So you don't have to possess any physical certificates showing that you own these shares. They are all held electronically in your account.
As you buy and sell the shares, they are adjusted in your account.
Just like a bank passbook or statement, the DP will provide you with periodic statements of holdings and transactions.
Is a demat account a must?
Nowadays, practically all trades have to be settled in dematerialised form.
Although the market regulator, the Securities and Exchange Board of India (SEBI), has allowed trades of upto 500 shares to be settled in physical form, nobody wants physical shares any more.
So a demat account is a must for trading and investing.
Where do I begin?
Look for a DP to have an account with
Most banks are also DP participants, as are many brokers.
You can choose your very own DP.
To get a list, visit the NSDL and CDSL websites and see who the registered DPs are.
A broker is separate from a DP. A broker is a member of the stock exchange, who buys and sells shares on his behalf and on behalf of his clients.
A DP will just give you an account to hold those shares.
You do not have to take the same DP that your broker takes. You can choose your own.
But many brokers offer special incentives in the form of lower charges for opening demat accounts with their DPs.
Get your documents in place
Once you approach your DP, you will be guided through the formalities of opening an account.
You must fill up an account opening form and sign an agreement with your DP.
The DP will ask for some documents as proof of your identity and address.
Check with them what they require. For instance, some may accept a driver's license, others may not.
Here is a broad list (you won't need all of them though):
� PAN card
� Voter's ID
� Passport
� Ration card
� Driver's license
� Photo credit card
� Employee ID card
� Bank attestation
� IT returns
� Electricity/ Landline phone bill
While they only ask for photocopies of the documents, they will need the originals for verification.
You will have to submit a passport size photograph on which you sign across.
How many shares you need to have to open an account
When opening an account with a bank, you need a minimum balance.
Not so with a demat account. A demat account can be opened with no balance of shares.
And there is no minimum balance to be maintained either. You can have a zero balance in your account.
What will it cost?
The charges for account opening, annual account maintenance fees and transaction charges vary between DPs. To get a comparative idea, visit the websites of NSDL and CDSL.
Can I nominate?
Sure. You can nominate whoever you like by filling up the nomination details in the account opening form.
This is to enable the nominee to receive the securities after the death of the holder of the demat account.
All set?
When you open an account, the DP will allot a unique BO ID (Beneficial Owner Identification) Number, which you need to quote for all future transactions.
If you want to sell your shares, you need to place an order with your broker and give a 'Delivery Instruction' to your DP.
The DP will debit your account with the number of shares sold. You will receive the payment from your broker.
If you want to buy shares, inform your broker about your Depository Account Number, so that the shares bought are credited into your account.
'Demat' is an abstract form of 'Dematerialization' which means removing from the material form. In case of shares, it means conversion of shares held in physical form into electronic form. DP is a short form of Depository Participant, with whom you open a Demat Account. Hope this suffices.
If you have 15 or less employees do you have to provide devices for the hearing impaired?
Answers: If you have 15 or fewer employees, you still have to accommodate for a disability of one employee if it is needed. You should check with the specific laws for your state. There might be an exclusion if the accommodation would cause an undue financial hardship to the company.
Your question, if stripped of it's political correctness basically asks if it's ok to discriminate against the handicapped.
A hearing impaired person can't communicate without help in the business world and therefore wouldn't be much help without a device.
To deny that person the right to earn a living because of a disability is not fair, right , or moral.
As I have a sneaking suspicion that your not too concerned with fair, right ,or moral (hope i'm wrong) the answer to your question is that there are ways around getting into situations were you have to provide devices. I'm not , however, comfortable with aiding and abetting you by sharing that info.
How much do you mull over a jewelry store would foot for a silver coin made exclusivly for me by the episcopl churh
I was lately given a silver coin made exclusivly for me by one of the higher bishops within the church and well since i kinda am within need of some money do to some loan shark troubles i be wondering how much a jewelry store would pay for it. it's made out of freshly pure silver nothing else and it's one of a gentle.Answers: It would have almost no collector worth, being that it's a decoration rather afterwards a legal tender coin. The best you can go and get is the melt importance of the silver. Even if you were to find someone on e-bay to buy it, I doubt you will be capable of get much more for it, and by the nouns of it you need the money ASAP.
Whatever the helpfulness of the silver is.
Look for similar coins on eBay and this will give you an impression if it has any effectiveness.
Good luck.