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Name change in Demat Account

Demat and Trading accounts are used by an individual for trading online. The online trading can include various things like shares, IPO’s, commodities and others. There are various DPs (Depository Participants) who allow an individual to open up a Demat account. Generally, they are not free of cost and require some fees or the other and especially the brokerage fee.

However, there are certain banks in India which allow the customers to open Demat account for free and the trading can be done through these accounts. The Demat account provided by the banks are integrated with the normal bank accounts and therefore, whenever a person trades, the funds and the shares available are checked in his/her own personal bank or Demat account respectively.

The documents required for opening up a Demat account are:

  • Duly filled account opening form.
  • An agreement is to be signed with the DP (Depository Participant).
  • Identity Proof.
  • Address Proof.

Identity and Address proof may include the following:

  • Work Permit copy.
  • Attested copy of account details.
  • Passport photocopy.
  • PAN card photocopy.
  • Voter ID photocopy etc.

However, there is one restriction applied in any Demat account (whether the account is in a bank or with a DP). A person cannot change the name in the account. Put in other way, name change in Demat account is not allowed. The opposite is however possible! A person can open as many Demat account as he/she wants on the same name.

But just in case, the person wants to change name, the person needs to open a new Demat account with the new name and close the existing account. The securities in that case will be transferred from one account to the other.

Comments

My wife has DMAT account with one DP. her account is in her maiden name. After marriage, Her name has been changed. Her change of name has been effected in her Bank Acoount also. She has got chenged her name in PAN CARD also. Now she wants to open new account with the same DP and got all the securities transferred in the new account and close the existing account. Please advise

In a newly open demat account the broking agent made a mistake while filling the form by spelling CHAUDHURI AS CHOUDHURI. We apprehend that there might be problem in ECS of dividends etc in the existing bank account. Is it not possible to rectify the spelling instead of closing down the account?

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