Raghunandan Money Demat account is your gateway to a safe, secure, hassle free & customer friendly services for investing into various investment products like shares, mutual funds, IPOs, bonds, NCDS etc. Your Raghunandan Money Demat account can be linked to your Trading Account, giving you a seamless trading experience. For trading in stocks, Demat is mandatory & hence before you think of trading, you have to open a Demat account.
Raghunandan Money Demat Account offers you power packed features which make it more rewarding:
In simple words “Demat” means “de-material” or something which is not material or we can say electronic. A Demat account is an electronic account to hold shares & other permitted financial investments without having the physical receipts or certificates. To make it easier to understand, Demat account is like your Bank Account but in your Bank Account you keep money whereas in Demat Account you keep shares. Today, Demat account is mandatory to trade into Indian stock markets and hence the first step to invest or trade in equities or stock market is to open a Demat account. Similar to a Bank Account where you keep your money money, make payment, transfers etc, in your Demat account you can to buy or sell stocks, mutual funds, bonds etc. Demat Account is just like bank account where actual money is replaced by shares. Like you get a cheque book in case of bank account to facilitate funds transfers, in case of Demat account you receive a DIS (Delivery Instruction Slip) booklet which serves the same purpose of transferring holdings across different Demat accounts. When you open a Demat account, you don't need to have possession of any physical certificate showing that you own these shares. They are all held electronically in your Demat account & whenever you buy or sell the shares, they are adjusted in your Demat account
Raghunandan Money opens Demat accounts for all the categories as permitted in regulations. A Demat Account with Raghunandan Money can be opened & operated by an Individual whether an adult or a minor, Resident or NRI, HUF, Trust, Corporate. In case of a Minor account, the guardian has to be appointed & documentation for guardian is to be completed as well. In case of HUF, the Karta of HUF is the signatory of the account whereas in case of Trust & Corporate, the authorized signatory can operate the Demat account.
In case of Individual Demat account, it can be opened in single or joint name but the mode of operation is always both. In other words, if there are two or three holders in the Demat account, all the holders would necessarily have to sign on the delivery slip (DIS) while doing any transaction of transfers.
Opening a Demat account is as simple as opening a bank account & opening Demat account with Raghunandan Money is even easier. We are just a call away to help you complete the account opening. The Demat account opening process is as below:
When you open a Demat account with Raghunandan Money, this account is owned by you (account holder) where as it is managed by the Depository & Depository Participant. In the entire process of Demat Account there are parties involved:
The usage of Demat account or the transactions that you do in your Demat account can be primarily classified into 4 types
Dematerialisation – Dematerialisation means converting your physical share certificates to electronic form. If you have any of the share certificates which are available with you in hard copy today, you may deposit it to Raghunandan Money Demat desk & get it converted into electronic form. The entire process takes around 15-20 days and you no more require keeping the certificates as all the holdings will come in your Demat account itself
Rematerialization – It is just opposite of Dematerialization. If you have a Demat account & tomorrow in future, you wish to convert the securities in your Demat account back into physical hard copy format, you may do it through Rematerialization
Transfer – The term transfer of securities means change of beneficial ownership. From your Demat account you may electronically or physically transfer holdings into a Demat account in your name or someone else’s name as per your instructions
Trade Settlement – If you hold a trading account with Raghunandan Money as well, whenever you buy or sell, the shares or mutual funds or bonds etc get adjusted into your Raghunandan Money Demat account directly
The key benefits of Demat account are:
Though there are some charges associated with Demat account, still looking at the advantages it brings along, the cost of Demat account is negligible today. For opening & maintaining a Demat account you generally need to pay 4 types of charges:
Raghunandan Money offers you Demat accounts with a freedom to opt for a plan & charge structure yourself. While opening account, you can go through the schedule of charges in the account opening form & select the one which is ideal for you
Broadly classifying there are 2 types or categories of Demat Accounts: Basic Service Demat Account (BSDA) & a Regular Demat Account. A basic service Demat account is ideally meant for new entrant to the equity markets where as regular Demat account is a full feature Demat account suitable for average investors & traders. Within Regular Demat account or generally called as Demat Account, different DP offer different plans within which there are a few differences on some services, charges or other parameters. While opting for a Demat plan, you should analytically figure out which plan suits you the most & accordingly opt for it. Call us now to help you select the right Demat account for you.
As already stated, a Demat account is mandatory to trade in Indian Stock Markets as physical trading is no more done on our exchanges. The buying or selling of securities or in other words trading is the outcome of a relationship between bank account, Demat account & share trading account. All these three accounts are mapped to each other to facilitate the entire trading process.
To make it simple, you can only store, Demat or remat securities in your Raghunandan Money Demat account. For buying and selling shares, you need to have a Share Trading account with any SEBI registered broker like Raghunandan money. In other words, a Demat account is like a storage facility while a Trading Account is the transacting medium to buy and sell shares. Your share trading account may be an Online Trading account or an Offline Trading account as opted by you, but whether online or offline; it can be linked to your Raghunandan Money Demat account directly. Raghunandan Money Trading account is an interface between your Bank account and your Raghunandan Money Demat account. When you buy something, at first you transfer money from your bank account to your Raghunandan Money Trading account & then using your trading account you buy your desired shares or mutual funds.
To know more on trading, please visit Equity section.