g. Receiving non cash corporate benefits, such as, allotment of bonus andrights shares or any other non cash corporate benefits given by theissuers in electronic form on behalf of its demat account holders.h. Pledging of dematerialized securities & facilitating loans against shares.i. Freezing of the demat account for debits, credits, or both.
13. What is the legal framework governing the depository functions inIndia?
A depository functions under the following rules and regulations:1. The Depositories Act, 1996,2. SEBI (Depositories and Participant) Regulations.3. Depository Bye-laws which are framed under the above two documents.4. Prevention of Money Laundering Act (PMLA), 2002
14. Can a demat account be opened directly with Depository?
No. A demat account can not be opened directly with Depository. It has tobe opened only though a DP of Depository.
15. Can an investor open multiple demat accounts?
Yes, an investor can open multiple demat accounts. There is no restrictionon number of demat accounts which an investor can open.
16. Is it necessary for an investor to open an account with the same DPas that of his broker for settling the trades done through him?
There is absolutely no compulsions on any investor to open his demataccount with the same DP as that of his broker. Investor can open accountwith the DP of his/her choice and can carry on his trading activity througha broker of his choice.
17. Can a demat account be opened in the name of Joint Holders?
Yes. A demat account can be a opened in a single name or in jointholders’ name. There can be maximum three account holders i.e. onemain holder and two joint holders.
18. Can a Demat account be opened for a minor?
Demat account can be opened in the name of a minor. The account will beoperated by a guardian till the minor becomes major. Guardian has to bethe father or in his absence mother. In absence of both, father or mother,the guardian can be appointed by court.