Demat Account related FAQs

For how long I can hold shares of a company? Is there any change for holding shares for long time?

Stock can be held in demat accounts or in physical form for as long as your heart desires. It can be kept for as little as one day by some people, while others may keep it for up to 20-30 years.

Many people have SBI shares in paper or demat formats for over 30 years.

Dividends and stock splits are paid by cheque, direct deposit to the bank account linked with your demat account, or by cheque.

Holding shares in a company is free of brokerage charges. Brokerage charges are charged when you purchase or sell shares through a stockbroker.

If your brokerage charges an Annual Maintenance Charge (AMC), then you will have to pay it every year. AMC is charged by brokerages such as ICICI Direct and HDFC Direct for demat accounts.

ProStocks, a broker, offers zero AMC accounts if you make a Rs 1000 one-time refundable deposit. These accounts are as safe as they are secure because the demat accounts are actually held by CDSL and NSDL, a centralized deposit service. Brokers are only intermediary services.


Is it necessary to have an demat account to apply in an IPO?


How securities can be transferred from one account to another?


Can I apply in an IPO if I don't have a Demat account?


On Demat account how much interest is given?


What maintenance charges are there for a demat account? Is there any processing fees or hidden charges on transactions I make on a demat account?


If I don't hold any share in my demat account, do I need to pay any annual maintenance charge


Can a person keep more than one demat account with same name?


Can a minor open a demat account?


Diffrenciate between Demat account number and Trading account number?


What are NSDL & CDSL?


Is a minor eligible to open a trading account?


Define Depository.


Define Depository Participants.


What does Dematerialisation process mean?


What are the benefits of holding shares in a demat account? Is it mandatory for all investors to open a Demat account in order to trade on the stock market?


How many demat account can a trader open?


In Demat account is there any nomination facility?


For any update in my personal details do I need to contact all companies?


What do I need to do with transaction statement, If I don't do trade on a regular basis?


How can I get help if I have any issue with my NSDL Demat account?