Can my demat account have joint holders?
- Asked By
- Updated On:14-Mar-2021
- Replies:2
Short Answer
Yes, your Demat account can have joint account holders provided they have been included in your demat account while opening a demat account.
Detailed Answer
The term "Demat account" refers to a dematerialized account. For your digital share certificates and other collateral, a Demat Account operates similarly to a bank account. Bonds, mutual funds, treasury bonds, and shares can all be held in a Demat account.
A Demat account can have up to three joint holders at the same time. One will be the primary account holder, and the other two will be joint account holders. Firms and collaboration organizations could also have Demat accounts. It is regulation that you can only open the account jointly that is once the account is opened, that individual is not allowed to add the members later.
The laws of transmission would extend to the assets issued in the Demat account if the single account owner or one of the joint owners dies then the surviving joint holder/s, beneficiary, or legitimate heirs of the former account holder must approach the Depository Participant (DP) with the required documents for the securities communication path.
Hence, Demat accounts are used to hold shares that are traded in the stock market. If you want to have joint holders, you can do so at the time of opening it. You can add up to three people in a single Demat account while opening one. You cannot add another person after its opened. Thus, there is no restrictions on having a joint Demat account.
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Discussion (1)
Are you looking to close your Demat account with SBICap. You are required to download the demat account closure form available online from the SBI official website.
Yes, you can open a demat account on your minor son/daughter's name with Upstox. However, after a specific age limit (generally 18), you can link a trading account to the Demat account. If not a trading account, users can open a Demat account and then connect the trading account.
The Axis Direct Demat Account Closure Process is quite simple. You need to fill up the account closure available online and submit it at the nearest branch or post it to the address mentioned in the form.
You can download the account closure form the given link - Demat Account Closure Form and post it to the address mentioned in the form.
Trade Smart demat account cannot be closed online. To close Trade Smart demat account, fill out the Trade Smart demat closure form and then courier it to the office address of Trade Smart.
Closing a Ventura Securities demat account is a little tedious as there is no online facility for the same, but it can be closed by sending a closure form to the nearest Ventura Securities office. The whole process will take 7-8 working days to complete your request.
Annual Maintenance Charge or AMC for a Demat Account is a mandatory fee need to be paid by each investors. In case of a non payment of AMC, your Demat Account will be announced inactive by your DP.
The Indiabulls or Dhani demat account can be closed by submitting the closure form. You just download the form from the broker's website, fill it out, and mail it to the broker's office address.
You cannot open more than one individual demat account with one PAN card in Zerodha. However, if you already have a demat account with Zerodha and want to open a second joint demat account with the same PAN card, that is possible to do so.
Public Provident Fund Scheme is a saving scheme that comes with tax benefits. Ministry of Finance introduced this scheme in the year 1968. The main objective of PPF is to encourage general people to mobilize their small savings. The interest offered on these schemes are not taxable. Precisely, PPF is an investment with non-taxable returns.
Sudhir Sachdeva
In case all the shares in the demat account are sold, the proceeds will be going to the linked bank account. Will the joint account holders have a right to their share of the proceeds? What will be the process to be followed?