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There may be a time when you want to edit the details in your Demat account. For example, it happens several times when you are officially changing your name, your surname, etc. The reasons for changing your name can be marriage, divorce, or a change in the father’s name or your middle or last name. In this scenario, it is essential to inform your broker about changing the name in the Demat account. By updating your details, you can have more control over the restoration or recovery of your Demat account.
In India, anyone can open a Demat account. The procedure to open a Demat account is simple and affordable for the common people of India. There is no minimum age limit. Even a minor can own a Demat account through their parent’s or guardian’s help.
The Know Your Customer (KYC) procedure for unlocking your Demat account is entirely online, and as a trader, you will be required to submit documents for your identity, address, and proof of income. Once you have provided these details to your brokerage, they will be verified, and after confirmation of more information, you will receive your Demat account details. You will receive your client ID, Demat account number, and Transaction Personal Identification Number (TPIN), which you can use to buy or sell shares online. A Demat and trading account offers the investor a lot of flexibility. You can customise it and accordingly manage your trades from a broker’s platform.
How to Change the Name on Your Demat Account?
A Demat account offers lots of flexibility. As an investor, you can customise your Demat account according to your liking. For instance, if you change your name and want to update your name in your Demat account, the procedure is as follows:
- Start by obtaining a form for the name change from your brokerage firm.
- Fill out the required details and sign the form before submission.
- Share your self-attested copies of your KYC documents, such as your PAN card, Aadhaar card, etc.
- Submit the proof of your name change along with the above document, which contains the new or updated name of the Demat owner.
You need to upload the following documents if your name changes due to the following reasons:
Due to Marriage or Divorce
- It is mandatory to submit a notarised copy of the marriage or divorce certificate.
- You must also share a notarised copy of your official name change announcement, as published in the gazetted document.
- It is also required to submit a scanned copy of the passport, which displays either the husband’s or the father’s name.
Due to Some Other Reason
- Submit a notarised copy of the name change announcement with an official gazette.
- In any other case, you also need to submit a notarised copy of the announcement with the original gazette. You may also be required to submit a self-attested PAN card and a change of name form to your brokerage company.
- If you are stuck somewhere, reaching out to your broker is the best way to clear up the confusion.
A Demat account can be operated and updated with ease. So, having a Demat account makes trading convenient and offers you access to your Demat holdings from your mobile or desktop. Apart from making trading easy, there are several benefits to having a Demat account. The article explains more about the advantages of a Demat account.
Pros of Having a Demat Account
No Extra Costs
With an online Demat account, you don’t need to pay an extra penny. Charges like stamp duty are excluded in online trade. According to the Securities and Exchange Board of India (SEBI) guidelines, there is no need to pay stamp duty charges on your trade.
Remote access
You can track your website from anywhere in the world. As a trader, you don’t need to worry about going anywhere or looking at the financial paper for your investments. You can access your Demat holdings from anywhere, including your home, office, and so on. As the market is volatile, your investment can become a profit or loss. So, depending upon the market conditions, it is important to track your trade and make necessary decisions regarding the same.
Fast Settlements
Previously, it would take weeks to settle your trade. Due to this delay, many traders were discouraged from trading in the stock market. But now, the settlement process is fast and convenient. You don’t need to travel, and it takes around T+2 trading days to settle your trade online.
An online Demat account is convenient and pocket-friendly. Charges for online trading are low compared to previous times. Hence, changing the name in the Demat account is easy and possible by submitting the proper documents.
Conclusion
Many traders recommend online trading as a better way to use your savings. You can trade in shares, mutual funds, or derivatives. Other investors prefer to save their money for a bit of interest, while the market’s interest and risk can vary depending on your trading. Having a Demat account organises and lets you trade efficiently by using different strategies, charts, and news related to the stock market.