Demat stands for dematerialization. The dematerialization process converts physical shares into electronic (dematerialized) shares, which eliminates all the problems associated with physical securities. A demat account has to be opened if you want to buy and sell shares, securities and debentures. Karur Vysya Bank is a registered member (Depository Participant) of National Securities Depository Ltd. (NSDL). Karur Vysya Bank has been enrolled as a Depository Participant by NSDL; India's first depository. You can avail of all your depository-related services and maintain a demat account in India by just opening an account with NSDL through Karur Vysya Bank.
Application Supported by Blocked Amount (ASBA)
- Now customers of KVB have the convenience of subscribing for IPOs without parting with their money and waiting for refund orders. KVB is one of the few banks in the country to offer the facility of ASBA.
- ASBA is an alternative mode of payment in Public / Rights issue.
- On submission of ASBA application, the application money remains blocked in the account of the investor till finalization of the allotment.
- ASBA facilitates earning of interest on the application money in SB Account till the amount is transferred to the registrars on the allotment.
- No need to write cheques or purchase Demand Drafts.
- No hassle of Refund Orders and encashment of the same.
Attention Investors: No need to issue cheques by investors while subscribing to IPO. Just write the bank account number and sign in the application form to authorize your bank to make payment in case of allotment. No worries for the refund as the money remains in investor's account.
KYC: KYC is a one time exercise while dealing in securities markets. Once KYC is done through a SEBI registered intermediary (broker, DP, Mutual Fund, etc.), you need not to undergo the same process again when you approach another intermediary. Prevent Unauthorized Transactions in your demat account by updating your Mobile Number with your Depository Participant. Receive alerts on your Registered Mobile for all debit and other important transactions in your demat account directly from NSDL on the same day. Issued in the interest of investors.
To register complaint with SEBI, please visit here.
The first step to dematerialize your shares is to open an account. You may open a demat account either to convert your physical certificates to electronic form, to deal in the secondary market or to apply for Initial Public Offers (IPOs).
Who can open an account?
Following entities can open a demat account:
- Resident Individuals
- Private Limited and Public Limited Companies.
- To open a demat account, you need a PAN card and you have to open a bank account with KVB.
Document Required for resident Indian to open a demat account
- Application form
- Pan card copy
- Valid Identity Proof
- Valid Address Proof
- You can download the account opening forms from KVB Website and submit them at any of our branches that offer Demat services.
- You can also visit any KVB branch that offers demat services to open a demat account.
- There is no fee to open a demat account and the first year's maintenance charges are waived for active accounts.
- However, a nominal fee will be levied towards services, as per our tariff
- For further inquiries, please mail to firstname.lastname@example.org
Prevent unauthorized transactions in your demat account. Update your mobile number with your depository participant. Receive alerts on your registered mobile for all debit and other important transactions in your demat account directly from NSDL on the same day – issued in the interest of investors.
Procedure to convert physical shares to electronic shares
To convert physical certificates to electronic form you need to submit Original Certificates along with a duly filled in demat request form to any KVB branch that provides demat services.
The demat request form should have the following details and should be filled in triplicate:
- Client ID
- Name of the account holder
- Security name
- ISIN Code
- Quantity and no. of certificates
- Folio number, Certificate number, Distinctive numbers
- Signatures of account holders
- Transposition form, if applicable
- Transmission along with the demat form, if applicable
Checkpoints before submitting your application
- Name, as on certificates, should match with those in the demat account.
- Quantity, Number of certificates, folio number, certificate numbers and distinctive numbers should match with that written on the demat request form.
- Separate forms required for each class of security, i.e. equity / preference etc.,
Procedure to transfer shares from demat account
- Whenever you want to transfer shares, you need a transfer instruction slip. If share ownership is transferred to a broker account by selling the shares on the stock exchange, it is called market instruction, whereas, if you transfer shares to your family or friends account it is called off-market instructions.
- The person receiving the shares can have a demat account either with National Securities Depository Limited (NSDL) or Central Depository Services (India) Limited (CDSL).
- If the buyer and seller of the shares have demat accounts with the same depository, it is called Intra Depository instruction or within depository instruction.
- If the buyer and seller of the shares have demat accounts with different depositories, then the transfer is called Inter Depository instruction and clients have to submit Form 36 in the demat designated branches of KVB.
Points to be remembered while filling transfer instructions
- Identify whether Market / Off Market / Inter Depository.
- For Market / Off Market / Inter Depository you need to submit Form 36.
- If it is a Market trade, you need to write CMBP ID / CM Name / Market Type / Settlement Number.
- If it is off-market trade, you need to write the receiving person's Client ID along with DP ID. Annexure Form 36 to be submitted for off-market sale transaction as per regulatory guidelines.
- Always write the International Securities Identifying Number (ISIN).
- The quantity in figures and words should match.
- Correction should be authenticated.
- If joint holding, all holders should sign.