Demat account Essay

The handicraft on stock tacks in India used to take place by means of open outcry without use of information technology for immediate unified or recording of affairs. This was time consuming and inefficient. This imposed limits on affair volumes and efficiency. In enact to provide efficiency, liquidity and transp arency, NSE introduced a nation-wide on-line in full automated screen ground trading organisation where a penis can punch into the computer quantities of securities and the outlays at which he likes to transact and the motion is executed as soon as it finds a matching bargain or buy order from a counter party. Screen based electronic system electronically matches orders on a strict price/time priority and hence cuts down on time, cost and risk of exposure of error, as well as on fraud resulting in modify operational efficiency. It allows faster incorporation of price sensitive information into dominate prices, and so increasing the informational efficiency of markets.It enables market participants, irrespective of their geographical locations, to trade with one an other(a) simultaneous, improving the depth and liquidity of the market. It provides full namelessness by requireing orders, big or small, from members without revealing their identity, thus providing refer access to everybody. It also provides a perfect audit trial, which helps to resolve disputes by logging in the trade execution process entirety. The sucked liquidity from other exchanges and in the very archetypal year of its operation, NSE became the leading stock exchange in the country, impacting the fortunes of other exchanges and forcing them to adopt SBTS also.Today India can boast that closely 100% trading take place through electronic order matching. In order to promote dematerialization of securities, NSE joined hands with leading fiscal institutions to establish the national securities depository Ltd. (NSDL), the first depository in the country, with the ac cusative of enhancing the efficiency in occlusion systems as also to reduce the scourge of fake/forged and stolen securities. This has ushered in an era of dematerialised trading and settlement. SEBI has made dematerialised settlement mandatory in an ever -increasing number of securities in a phased manner, thus bringing around an increase in the proportion of plowshares delivered in dematerialised form. thither is an increasing preference to settle trades, particularly in high measure securities, in demat form. Suchhigh level of demat settlement reassures success of bun settlement. What is DEMATIn India , a demat cipher, the abbreviation for dematerialised flier, is a type of banking draw which dematerializes paper-based personal stock shares. Conversion of Securities from Physical (Paper) Mode into Electronic Mode is Called Dematerialisation. The lymph node opens Demat Account with either DP. Upon Demat, the Certificates are destroyed and credit entry of just now equa l number of Securities is created in Depository in Electronic mode. The B.O. tarradiddle of holder is credited and the securities loose their identities. The dematerialised fib is used to avoid retentivity physical shares the shares are bought and sold through a stock broker. This sum up is popular in India.The market regulator, securities and exchange board of India (SEBI) mandates a demat account for share trading above 500 shares. As of April 2006, it became mandatory that any person holding a demat account should possess a permanent wave account number (PAN), and the deadline for submission of PAN inside information to the depository lapse on January 2007. Dematerialisation is the process by which physical certificates of an investor are converted to an resembling number of securities in electronic form and credited in the investors account with its DP. In order to dematerialize certificates an investor will have to first open an account with a DP and then request for the dematerialisation of certificates by filling up a dematerialisation request form DRF, which is available with the DP and submitting the same along with the physical certificates. The investor has to ensure that before the certificates are transfer over to the DP for demat, they are de impudenced by marking Surrendered for Dematerialisation on the face of the certificates. Objective of the Study The main object lens of the study is to know about the potential of the market regarding peoples dealing in share market. To know the role of Demat Account . To know the procedure of first step DEMAT ACCOUNT. The objective is to know that how many people in the city are cognizant of the UNICON SECURITIES PVT. LTD. To know where people have already opened their demat a/c and on what basis. Procedure for Opening an AccountA demat account are opened on the same lines as that of a Bank Account. irrefutable Account opening forms are available with the DP, needs to be make full in. Standard Agreements are to be signed by the Client and the DP, which flesh out the rights and obligations of both parties The DP officials will make available the relevant account opening form (depending on whether the client is a retail investor or corporate client/clearing member) and specify the list of documents regarding references that should be submitted along with the form. It will also give a retroflex of the relevant concord to be entered with the client, in duplicate. The client will submit the duly fill up in account opening form and client has to visit in person for opening the account in DP. The DP officials have to do in person verification and amplify the IN PERSON VERIFICATION stump on the account opening form. It should also furnish such documents regarding references, as specified by the DP, along with the account opening form. After put to death the agreement the client has to forward it to the DP. The DP officials will master that the account opening form is d uly filled in. It will also verify the enclosed documents, if any. Incomplete forms will be forwarded to the client for rectification.For Corporate Clients, the DP officials will verify if the board resolution for the authorized signatories is enclosed. In upshot the documents are not proper, the DP officials will reject the form and adumbrate the client of the same, stating the reasons for doing so. If the form is in order the DP officials will accept the same and affix the stamp verified with original on individually and every proof after seeing the original proofs. After closedown of all documentation, the DP officials will verify the pan from income tax website. And affix the stamp PAN VERIFIED with date and sign on the stamp. The DP officials will enter the client details as mentioned in the account opening form in the DPM (software provided by NSDL & CDSL to the Participant) screen provided for the purpose.In scale of NSDL A/c opening the sr. Assist will intrigue al l the details in the DPM and record the clients soupcon (on the form) as specimen for authorizations in the future. After entering client details in the system, a client account number will be generated by the DPM. The DP officials will enter this in the account opening form. After that the officers will verify the details in the DPM captured by the SR. Assist. andactivate the account. The DP officials are not allowed to give the demat a/c no to the clients until the a/c is activate, this is applicable for both NSDL & CDSL. When the demat a/c is activated the DP officials have to send the client master and the copy of agreement between DP and client at the clients address DEMAT Process The registered holder of the securities makes the request. Securities must be recognised by Depository as eligible. Client submits DRF & physical certificates to DP. DP checks securities. Client defaces certificates and DP punches two holes on name of company. DP enters demat request in system for Depository. DP dispatches certificates along with DRF to R&T. Depository records the details and sends to R&T. R&T agent verifies the details and confirms to Depository. Depository credits the demat securities to BO a/c of client and intimates DP electronically. DP issues statement to client