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DEMAT AND REMAT

PRESENTED BY:MOHINDER PRATAP SINGH CUN110550043 MBA(GEN)

DEMATERIALISATION(DEMAT)
Dematerialisation is the process of converting physical shares (share certificates)into an electronic form. Shares once converted into dematerialised form are held in a Demat account.

TRADE FLOW

DESPOSITERY
A bank or company which holds funds or securities deposited by others and where exchanges of securities take place There are two types of depositories in India. i. (NSDL)National Securities Depository Limited ii. (CDSL)Central Depository Service Limited.

DESPOSITORY PARTICIPANTS
Depository Participant (DP) is described as an agent of the depository. They are the intermediaries between the depository and the investors.

CDSL NSDL

SBI
HDFC BANK
YOU THE CUSTOMER

ICICI DIRECT
ANGEL BROKING

DEPOSITORY SIMILAR TO A BANK


Depository can be compared with a bank, which holds the funds for depositors. BANK
Holds funds in an account.

DEPOSITORY
Hold securities in an account.

Facilitates transfer without having to handle money. Facilitates safekeeping of money.

Facilitates transfer of ownership without having to handle securities. Facilitates safekeeping of securities.

Step1- Investor surrender the physical certificates to the DP for approval. Step2- DP informs the depository about the request. Step3- DP forwards the certificates to the registrar of the issuer company. Step4- Registrar communicates with the depository to confirm the request. Step5- Accounts are updated by the registrar and depository and then DP is informed about the same.

BENEFITS OF DEMAT ACCOUT


A safe and convenient way to hold securities. Immediate transfer of securities. No stamp duty on transfer of securities. Elimination of risks associated with physical certificates such as bad delivery, fake securities, delays, thefts etc. Reduction in transaction cost. Transmission of securities is done by DP elimination correspondence with companies.

REMATERIALISATION(REMAT)
The process of getting the securities in an electronic form, converted back into the physical form is known as rematerialization. An investor can rematerialise his shares by filling in a Remat Request Form (RRF).

Step1- Investor makes request for rematerialiasation to the DP. Step2- DP informs depository about the request. Step3- Depository confirms the request to the registrar of the issuer company . Step4- Accounts are updated by the registrar and details are provided to the depository. Step5- Investor receives the updated certificates from the registrar.

OPENING A DEMAT ACCOUNT


Getting started
Choose a DP Fill up an account opening form provided by DP, and sign an agreement with DP in a standard format prescribed by the depository. DP provides the investor with a copy of the agreement and schedule of charges for his future reference. DP opens the account and provides the investor with a unique account number, also known as Beneficiary Owner Identification Number (BO ID).

CONT.
Documents to be attached
Passport size photographs Proof of residence (POR) -Any one of Photo Ration Card with DOB /Photo Driving License with DOB /Passport copy / Electricity bill /Telephone bill Proof of identity (POI) -Any one of Passport copy / Photo Driving License with DOB / Voters ID Card/ PAN Card / Photo Ration Card with DOB PAN card

CHARGES INVOLVED
There are five major charges usually levied on a demat account. All the charges vary from DP to DP. I. Account opening charges II. Annual maintenance charges(folio) III. Custodian charges IV. Transaction charges V. Brokerage charges

DIFFERENT BROKING FIRMS


HDFC securities Aditya Birla Money Angel Broking Sharekhan ICICI Direct Kotak securities SBI Indiabulls

COMPARISON OF SOME BROKERS FIRMS


PARTICULARS
AOC AMC

HDFC Securities
RS799 RS499

Angel Broking
RS390 RS300 (1ST YEAR FREE) 30p (delivery) 6p (intra-day) IE 6.0+

ICICI Direct
RS975 RS500/450 (paper/email statements) 0.55% (delivery). 0.05% (intra-day) IE 5.5+ , NN 4.7 and FF 2.0+

Brokerage Browsers Enquiry Access

0.5% (delivery). 0.05% (intra-day) IE 5.0+, NN 8.1+ and FF 1.5+ 1-800-209-9700 Online, phone, branch

No toll-free number No toll-free number Online, branch Online, phone, branch

FINDINGS
Maximum broking firm charges rs500 for opening demat accounts. Credit limit varies customers to customer, even with intraday and on delivery basis. Average investment charge by all the broking firms is 18% Annual maintenance charge is between 250 to 500.

THANK YOU