I.

INTRODUCTION:-

A demat account is, in a way, like a bank account. Just as you hold your cash balances in your
bank account, you hold equity shares and other securities in your demat account. In the past
(prior to 1997) shares were held in physical form (share certificates). Once these physical shares
are dematerialized, they can be held in a demat account. No worries about bad delivery, losing
your share certificates, signature mismatch, storing your share certificates etc. Nowadays, all
share purchases and sales are done only in the demat mode (i.e. debit or credit to your demat
account).

II. PROCEDURE TO OPEN A DEMAT ACCOUNT:

To open a demat account you must approach your Depository Participant (DP). The DP could be
your broker or a bank. While you will open your demat account with the DP, the actual shares
will be held in custody by one of the depositories (CDSL or NSDL). These are institutions
sponsored by large institutions with government participation and hence you are assured of
safety and security.
The next step is to submit your KYC (Know your Client) documents. Along with filling the
Account Opening form and filling all the details, you will also be required to submit copies of
your passport sized photographs and your PAN card. Additional, you need to furnish one proof
of identity and one proof of your current residential address. The KYC form has the DP-Investor
agreement, which lays out the rules and regulations and your rights and obligations. Do read the
fine print in detail.
At the third stage, most DPs will insist on an in-person-verification (IVP). Either you can
personally visit the centre or the representative will visit your place. Some brokers permit IVP
over the web cam, although most brokers still insist on IVP.
The last step is the allocation of the Beneficiary ID (demat account number) once all the
documents are in place and verified. The DP id and the Beneficiary id combined becomes your
unique DP code for all future transactions, IPO applications etc. Demat account can only hold
shares in custody and you still need a trading account with a broker to buy and sell shares.
A few basic things to take care of here! All documents should be self-attested and originals
produced on request. Proof of identity and address provided should exactly match with the
details provided in the account opening form.
III. DEMAT ACCOUNT IN BANK OF MAHARASHTRA:-
Bank of Maharashtra is a Depository Participant (DP) of CDSL since 1999. Services rendered
are for holding / transferring / pledging of securities such as shares / Debentures / Bonds /
Commercial Papers/ UTI units / etc (known as securities) in electronic form (Dematerialized
form). 
 IV. FUNCTIONS
 Dematerialisation (conversion into electronic form) of securities in physical form.
 Rematerialisation (conversion to physical form) of Securities held in demat account.
 Effecting deliveries from demat accounts.
 Getting credits into the demat accounts when transferred from other accounts.
 Modification of accounts for change of address / Bank account details / nominee / power
of attorney.
 Pledge / unpledge of securities, where the securities remain in the account of pledgor but
are blocked in favour of pledgee. For pledge both pledgor & pledgee must have accounts in
CDSL, though with different DPs.
 Freeze / unfreeze of Account or specific securities.

V. FACILITIES
 Debits to accounts are effected under instructions from clients.
 On line inter depository transfers are allowed on real time basis i.e. within few minutes of
processing of instruction.
 Credit receipts are automatic. No instruction is required to receive credit. However if
client desires, automatic credits can be blocked and can be effected only under instructions.
 There is easy method of pledging securities for loans from Bank. Under the method
securities are retained in the accounts of pledgor under block in favour of pledgee (Bank). At
instruction of pledgee (Bank branch) the securities can be released (unpledged) or transferred
(confiscated) into account of pledgee. All corporate benefits of dividends / bonus etc are availed
by pledgor during pledge. 
 Freeze of securities for debit or credit or for both can be undertaken.
 Transmission (death claim settlements) to surviving holder(s) or Nominee (incase of
death of all holders) is allowed.
 SMS Alert facility on account positions & security transfers are available.
 A facility known as “EASI” (Electronic Access to Security Information) is available free
of charge to view account position through Internet.
 A facility known as “EASIEST” (Electronic Access to Security Information & Execution
of Security Transactions) is available at nominal cost to execute delivery transactions with help
of e-token (Digital Signature Certificate).
 Transaction cum holding statement is sent on monthly basis for accounts having
transaction during the month and quarterly holding statement for all accounts.
 Dividends are credited directly to the bank account (as referred in the Demat account).
 Demat service charges are recovered directly from the charge bank account referred.
 Delivery instructions slips can be deposited at the parent branch where bank account is
maintained.
 With one time execution of fax indemnity (Rs 200/- stamp) instructions slip can be faxed
followed by ensuring original to reach within two days.  
Who can open Demat Account
VI. FOLLOWING CATEGORIES CAN OPEN A DEMAT ACCOUNT:
Individuals  / HUF/ NRI / Body Corporate / Registered Society / Registered Trust / Recognized
Funds (Gratuity Fund, Superannuition Fund, Venture Capital Fund etc) / Foreign Institutional
 Investors / Overseas Body Corporate / Banks / Mutual Funds / Association of Persons / Foreign
National / Clearing Members (Brokers).
 Demat account in the name of Proprietorship / Partnership firm / Unregistered Society /
unregistered Trust cannot be opened.
 Demat account in the name of HUF / Minor can be opened as 1st and sole holder. Joint
accounts with others are not allowed.
 Joint accounts can be opened in the name of maximum three holders.
 To open and maintain a Demat account with Mahabank DPapplicant must have a bank
account with any Branch of Bank Of Maharashtra under Core Banking. 
 An NRI can open demat account on repatriation basis or non- repatriation basis. For non-
repatriation basis domestic address and NRO bank reference account number is required.

VII. INFORMATION AND DOCUMENTS TO BE SUBMITTED FOR OPENING

ACCOUNT 
 PAN card copy for all joint holders.
 Proof of ID if PAN card copy is without photo or is not adequate.
 Proof of Correspondence address (1st holder), permanent address of all joint holders (if
other than correspondence address).
 Proof of Dividend bank account details if account is not in Bank Of Maharashtra.
 Charge bank account details (must be Bank Of Maharashtra account) for recovery of
demat charges.  Undertaking to debit charges to the referred bank account is to be signed by all
holders of the bank account.
 Photographs of holders (pasted with cross signed by photo holder).
 Information of financial status (income range) of 1st holder.
 Other relevant documents as per the constitution of the applicant.
 DP-BO agreement (stamped Rs 100) signed on each page with one witness.
 Nomination option (Yes or No) with signature. If yes Nominee details with two
witnesses.
 Birth certificate of nominee as holder or nominee of Demat account.

ID proof must be one of the following:

 PAN card with photograph,
 Voter ID
 Driving License,
 Passport,
 ID card / document with photo issued by Govt / statutory authorities / PSU / scheduled
commercial banks / Public Financial institutions / Colleges affiliated to universities / professional
bodies such as ICAI, ICWAI, BAR COUNCIL etc.
 credit card / debit card with photo issued by banks.

Address Proof must be one of the following:

 Passport
 voter Id card,
 Driving License,
 Ration card,
 Bank passbook,
 electric bill / landline residence telephone bill copy not more than two months old,
 Leave and License agreement / agreement for sale,
 self declaration by high court and supreme court judge giving address of their own
account,
 Id card with address issued by institutions mentioned under point (v) above.
 A bank statement (showing the name, address of the BO, and bank transaction during a
period printed on bank stationery / letter head) duly attested by the bank official under bank
stamp and signature of the bank official or
 Original computer generated statement with details as above printed on bank stationery /
letter head self attested by BO along with cancelled cheque (in original) pertaining to the bank
account. Such statement in point No (x) & (xi) should not be more than 2 quarters old.
 Acknowledged copy of income tax returns.

Miscellaneous
 For every operation Demat account of client & security ID must be active.
 After account opening letter with account details along with delivery instruction slip book
is sent to account holder directly in the correspondence address. If any letter is not received
within 15 days of submitting the application then applicant may contact branch or Demat Cell.
 Proofs and application form is to be got verified by branch officials with name and
signature code before receiving acknowledgment for submission of application.
 Address / contact number / bank account details / power of attorney holder / nomination
details can be modified at request with proof of new details. However name or order of holders
of a Demat account can never be changed. On death of one joint holder the holdings are
transmitted to new account in the name of surviving holders or Nominee (after the death of all
holders)
 Nomination is only for individuals (single or joint) and only one nominee is allowed.
 Every operation or instruction in joint account must be in joint mode.
 Lock-in shares are allowed for dematerialisation.
 Lock-in shares are allowed for pledge, but cannot be transferred to pledgee account
before expiry of lock-in period.

VIII. CHARGES
The charges (excluding service tax) for demat services applicable as on date ( 01.02.2016) are as
under
PRIVATE / PUBLIC TRUST
Particulars Charges
Documentation including Actuals
stamp duty
Dematerialization Rs.2/- per certificate Min. Rs. 25/- per request
Charges
Transaction (Sell/Debit) 0.03% of value subject to min. Rs.25/- & max. Rs. 500/-
For MAHA e-trade Online Trading Customer flat charges Rs 10/-
 per transaction
Pledge Rs. 60/- per ISIN (pledgor), Rs. 40/- per ISIN (pledgee)
Unpledge Rs. 30/- per ISIN (pledgor),
Rs. 20/- per ISIN (pledgee)
Pledge invocation Rs. 40/- per transaction
Remateralisation / Rs. 30/- per transaction
Repurchase
Failed Transaction Rs. 25/- per transaction
Late Transaction Rs. 20/- per transaction
Demat / Other mail Actuals Min. Rs. 25/- per transaction
Charges
Freeze / Unfreeze Rs. 50/- per transaction
Charges
Annual Maint. Charges Rs. 500/- p.a.(for individuals/ NRI/HUF Trust), Rs.150/- p.a. for
existing / retired staff, Rs. 1,000/- p.a. for others payable in
advance
Free for 1st year for Royal Saving A/C
AMC Free for 1st year and 50% of AMC waived from Year 2 for
Purple Saving A/c