bankofbaroda.com Demat Account Opening Procedure : Bank of Baroda

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Name of the Organaisation : Bank of Baroda
Type of Facility : How to open Demat Account
Location: India

Home Page : http://www.bankofbaroda.com/

Demat Account Opening - Procedure

Trading in the stock market can be started after opening a Demat account. For this, the investor needs to get a list of Depository Participants registered with the National Securities Depository Ltd. and the Central Depository Services Ltd. According to the Securities and Exchange Board of India (SEBI) guidelines, the investor will fill a Demat account opening form and attach the following documents with it:
** Copy of PAN card along with the original for verification.
** Residence proof and ID proof.
** Copies of passport and driving license.
** Passport size photograph signed across by the applicant.
The customer then needs to sign an agreement from the DP regulating the rights and responsibilities of the investors and the DP, and gets to keep a copy of the same for further reference. Within 15 days of the submission of form and documents, the DP will open an account for the investor and provide a unique account number which is called the BO ID (Beneficiary Owner Identification Number).
This BO ID will be mandatory for all transactions made by the investor, and will also help in trading shares from other DPs or brokers, transfer of securities, or for applying mutual funds or bonds, etc. A Demat account holder has the advantage of being able to maintain his account with no balance shares and virtually zero balance.

Benefits of Online Trading Account with Demat Account :
Online trading is a convenient and safe way of trading in the stock market. Electronic maintenance of shares and securities eliminated the various problems involved with the physical shares.
** No risk of forgery, bad delivery, fake security, delay or theft as in paper shares.
** Reduced paper work and hence the low cost.
** Multiple transactions using a single Demat account.
** Cost per transaction is lower.
** Traders can work from anywhere.
** Investment in gold through ETFs.
** Investing in BeEs and IPOs is simpler.
** Ensures profit because of increase in volume of overall trading.

Demat Account Charges :
A Demat account is a safe way to hold securities and hence the DPs impose four primary charges on the investor, although different DPs charge different amounts.
** Opening charges – Few banks and brokers charge for opening a Demat account but many DPs do it free of cost.
** Custodian fee – This monthly charge is for managing the securities and their safety, priced according to the number of securities.
** Maintenance charges –Also called folio maintenance services, this is charged for a year at the commencement of the period
** Transaction charges – This monthly charge is for debiting/crediting securities in and out of the account. There are DPs who charge for debiting and crediting separately or for each transaction.
Banks and brokers charge for converting paper shares to electronic form and vice versa, i.e. dematerialization and re-materialization. A flat fee per request and a variable fee per certificate are charged. Frequent traders can choose to have a frequent-trader account where they are offered lower rates than others.
If the balance falls down a certain amount prescribed by the DP, the account holder needs to raise it. DPs generally don't charge for an account transfer within branches of a DP. The account holder will also need to pay any charges revised by the DP or for the service taxes.

Demat Account Application Form : http://www.bankofbaroda.co.in/downlo...%20Account.pdf

Instructions for the Applicants / BOs for account opening :
1. Signatures can be in English or Hindi or any of the other languages contained in the 8th schedule of the Constitution of India. Thumb impressions and signatures other than the above mentioned languages must be attested by a Magistrate or a Notary Public or a Special Executive Magistrate under his/her official seal.
2. Signatures should be preferably in black ink.
3. Details of the Names, Address and Tel Number(s), etc., of the Magistrate / Notary Public/Special Executive Magistrate are to be provided in case of attestation done by them.
4. In case of additional signatures (for accounts other than individuals), separate annexures should be attached to the application form.
5. In case of applications under a Power of Attorney, the relevant Power of Attorney or the certified and duly notarized copy thereof, must be lodged along with the application.
6. All correspondence / queries shall be addressed to the first / sole applicant.
7. Strike off whichever is not applicable.

For More Details: http://www.bankofbaroda.co.in/pfs/demat.asp

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I want to know the benefits of demat account?

Benefits of Demat Account :
Holding a Demat account, an investor can trade in the stock market with much ease and confidence since the transactions are simple and safe. It has enumerable benefits.
** A Demat account is the safest place for your securities unlike the risks involved in physical shares.
** Transferring of the securities to a Demat account is quick and simple.
** No stamp duty (0.5% per entity) for transfer of securities.
** Reduced paperwork.
** Lesser transaction cost.
** Issues regarding settlement of ownership title of securities and receipt of public issue allotments have become easier to acquire.
** No problem of odd lot since a single share can be sold easily.
** Transmission of securities is done by DP, so the companies need not be notified.
** Change in address is recorded with DP which is registered with the companies in which the investor holds securities, so the companies need not be notified individually.
** Shares arising out of bonus/split, consolidation/merger, etc. are automatically credited in the Demat account.
** Both equity and debt investments can be held in the same Demat account.
** Helps in increasing overall trading and profitability, benefitting the investors, brokers and the companies.
** Investor gets the freedom and comfort of working from anywhere, just being online.

You can change your address, without worrying, as your current address gets registered with your DP and it gets shared with every company you hold securities of.