Joint Demat Account Details & Benefits

One of the major prerequisites of participating in the Indian securities market is having a demat account. As its name suggests, a demat account is an account that serves as the safe storage unit for your securities in a dematerialised form. This account is opened with either the Central Depository Services Limited (CDSL) or the National Securities Depository Limited (NSDL) through a depository participant (DP). You can open a demat account online. 

• What is a Joint Demat Account? 

If you are wondering whether you can open a joint demat account, then the answer is in the affirmative. Just as you are allowed to open a joint bank account, you can also open a joint demat account online. Such an account has certain key characteristics, which have been listed below. 

1. A joint demat account can have a total of three account holders. 
2. One of the demat account joint holders is the primary holder of the account whilst the other one or two holders are secondary holders of the account. 
3. All the demat account joint holders are required to validate the transactions in the account. 
4. The names of the account holders for a demat joint account cannot be modified, added, or deleted after the opening of said account. 
5. The individual holders of a joint demat account do not have to pay separate annual maintenance charges on the account. 
6. In the event of the death of one of the joint holders of a demat account, the ownership of the account gets vested in the remaining holder/s. If all the demat account joint holders die, then the account's benefits transfer to the nominee. 

• How can you open a Joint Demat Account?

It is easy to open a joint demat account online. The process is similar to opening a single demat account. All you need to do is visit the official website of the selected depository participant and have all the necessary KYC documents handy. Whilst filling the account opening form, you must select the mode of operation of the account as being joint instead of single, and mention the names of all the account holders. 

• What are the benefits of a Demat Joint Account? 

There is only one major benefit of a joint demat account, namely, that each individual holder of the account does not have to pay the demat account annual maintenance charges separately. Although the account has multiple holders, the charges are for one account. This is one of the main reasons why people opt for a joint demat account. 

• To sum it up

You can open a joint demat account online by following a few easy steps. Such an account enables the joint demat account holders to save on the cost of the fees for multiple demat accounts.

Related Articles: How to Open a Demat Account Without a Broker | Factors to Keep in Mind While Opening a Demat account | Factors to Consider When Opening a Demat Account | 10 Points to Remember When Operating your Demat Account 

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