Demat Account Opening is now Simplified. The client can open an account at his/her option without bearing any cost at the time of account opening. The agreement to be executed between the client and Saraswat Bank is now replaced with a common document “Rights and Obligations of the Beneficial Owner and Depository Participant” which attracts no stamp duty charges. This document is mandatory and binding on all existing and new clients. A format of the document is present at branches and also made available on website.
The procedures for opening demat account in NSDL or CDSL are similar.The client who wishes to open a demat account with Saraswat Bank, can open two types of account:
An individual Account either Resident or Non Resident can be in the name of an individual, Karta or Minor. The proof of address, proof of PAN card as well as proof of identity of all the account holders is required while opening a new demat account which should be self attested.
Any one of the following documents should be submitted as proof of identity.
Any one of the following documents should be submitted as proof of address, documents having an expiry date should be valid on the date of submission.
Kindly note that an account of the minor, has to be in the sole name of the minor only. No joint holder for such account is permitted by NSDL. Similarly for a HUF account there cannot be a joint holding. The account has to be opened in the sole name of the KARTA only.
The following are the requirements for opening the corporate account. NSDL/CDSL does not permit the demat accounts in the name of partnership firm or proprietorship firm. Hence for partnership/proprietorship accounts, the demat account can be in the name of the partners/proprietors and not in the name of the firm. The following documents are required to be submitted along with the demat corporate account opening form:
A client can avail of the nomination facility for his/her demat account. You can nominate at the time of account opening itself or any time in the future by filling the nomination form. A nomination can be changed at any time by filling the same form. By availing of the nomination facility, the nominee is entitled to receive shares outstanding in the name of the deceased client. However the following categories of investors cannot nominate:
The nomination forms (Form JA), are available in any of the Saraswat Bank Branches. However in CDSL, in case of minor account, the guardian can make a nomination on behalf of the minor.
Benefits accruing to the shareholders and/or unit holders of Mutual Funds in the nature of dividends, units, bonus etc are generally referred to as corporate benefits.
The company/R&T Agents will distribute dividend, interest and other monetary benefits directly to the client, if the shares are in demat form, on the basis of the particulars of the holdings of beneficial owners received from NSDL/ CDSL on the cut off date. If the company is making the payment through ECS, the company will directly credit the dividend to the bank account, which is registered by the client with the DP. If the company is making the payment through cheque, the bank details will be printed on the warrant. The mode of payment of the dividend etc is decided by the company.
In case of bonus allotment by the company, the clients holding the shares in electronic form, will directly receive credit in their demat account. Intimation to that effect would be send by the company/ Registrar to the client.
In case of rights issue, on the basis of the details of holdings from NSDL/CDSL, the Registrar dispatches, the application form for rights issues to the beneficial owners. The customer has to exercise the option to hold the shares in physical or in electronic form. If he opts for the later, the client has to mention the DP Id and the client ID on the form.
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