DP SERVICES
DP or Depository Participant is an institution that holds securities with it in a dematerialised form, in which shares, debentures, mutual funds, bonds etc., are traded. Tradejini is a Depository Participant with CDSL, which has more than 1 Crore De-mat accounts with it. Tradejini’s DP services offers a secure , convenient and cost effective way to track your investments in shares and other financial instruments over a period of time.With our DP services you get the following benefits on enrolment :
1) De-materialization and Re-materialization services, guidance and support.
2) Transfer and Pledge of Shares and lending and borrowing of stocks and scrips.
3) Speedy and efficient Account opening and operating process.
4) Instructions based instant account updates and availability of reports and statements on demand.
5) Maintenance of securities in electronic form, thereby minimizing chance of those getting stolen, damaged or misplaced.
6) Transaction History, Holdings etc., for computation of tax and other reporting.
7) Receipt of Dividends, corporate actions like Bonus, Splits and other benefits directly into the de-mat account or Bank account as the case may be without any loss on account of change in address or other demographic changes.
8) One Point of contact for change in any demographic changes which will be reflected across all companies in the clients de-mat holdings.
9) Facility of Nomination which leads to seamless transfer of securities in the de-mat account to the nominee in case of death of the holder.
Frequently Asked Questions regarding DEMAT
Q– What is Dematerialization and why is it required?
A–A Demat account is essential for any investor to participate in the Stock markets as trades in the Cash markets of all Exchanges are compulsorily settled in Demat form only. Also to Invest in shares of New Issuances (IPO’s) the requirement of Demat account is a must. Basically, Dematerialization is the process through which physical shares are converted and stored in a digital format. To achieve that one has to open a Demat Account with a Depository Participant. A demat account can be thought of as a bank account , only difference being that instead of money , shares are deposited and held in a demat account.
Q– How does an Individual Investor Participate in this system?
A-For Investors who are new in the system any Purchases from the market will be credited to the Demat account by the brokers or IPO Issuing companies. Subsequent secondary market transactions can all be carried on thru this account only. Like explained above, the individual investor requires to open a demat account through a Depository Participant. The DP then dematerializes the shares of the customer by co ordinating with the concerned company and holding those in the demat account. For enabling this customer has to submit a demat request form to the DP.
Q-What is a depository and what are its benefits?
A-The Principal benefits of holding Securities in demat form are 1. Ability to trade in securities in fully digital mode 2. Any demographic changes in terms of change in Address, change in Bank account details (for dividend) change in Nominee and any other changes in the profile of the Investor is captured at one point and disseminated to all the Companies whose shares are held in the demat account . Changes if any at a later date of any of the demographic details is also facilitated by merely changing the same in the demat account instead of earlier practice of intimating each and every company whose shares are held by the Client 3. Receipt of Corporate actions like Bonus shares, stock splits and reorganisation of companies are seamlessly carried out by the companies without any action from the client end as the details entered in the demat account serve the basis for such actions 4. Minimizing chance of Securities getting stolen, damaged or misplaced as was the case in Physical share certificates A depository, as the name suggest is a place where one can deposit valuables for safekeeping. Similarly , In Financial market terms , a Depository is an organisation that holds securities(like shares , debentures , bonds etc.) of investors in electronic form on the request of the depositor, through the intermediary services of a DP or a depository participant , who basically acts as an agent of the depository services providing an interface to the depositor.
Q– What is the Role of CDSL?
A-CDSL or the Central Depository Services Ltd. Is the monitoring body that carries out and monitors the depository functions of the DPs and acts as a kind of governing body? CDSL provides the software to the DPs and that helps in standardization and portability across DPs.CDSL also performs certain essential activities through its various DPs , some of which are to enable the surrender and withdrawal of securities to and from the depository ,settlement of off market trades and maintaining the investor’s holdings electronically etc.
Q-What are the payable Charges of operating through DP?
A– at the time of opening the account tradejini charges a nominal Annual maintenance fee which is currently Rs. 300 + GST + Rs. 50 towards Stamp duty .Subsequently there is an Annual maintenance fee of Rs. 300 + GST from the second year onwards.In addition, there is a flat transaction fee for delivery instruction which is currently Rs. 14.5 plus applicable GST .This fee is applicable at the time of selling only.
We have tried to make this page as self explanatory as possible. If you still have some queries, we will be happy to answer those for you. Kindly contact us at 080-40204020 or send us an email at help@pre-prod.tradejini.com