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The following documents will be required:
- Account opening form completely filled and signed by all the holders
- Introduction of all the joint holders (Photocopy of the Passport/Voters ID Card/Driving License/PAN Card)
- Address proof for all the joint holders. This could be any of the introduction documents (as above) if the address is the same as required for the account. Alternatively, a Copy of the Telephone Bill/Electricity Bill/Income Tax Returns/Bank Statement can also serve as address proof
- Income Tax Permanent Account Number (PAN) is mandatory. It needs to be mentioned on the form. If you do not have a PAN, please fill and submit Form 60
- Signature Card with specimen signatures of all the holders
- 1 Photograph of all the joint holders with Signatures across the Photo
- 1 Photograph and Signature of the nominee (if you are opting for the nomination facility)
- Form cum POA for giving transfer instructions using Citibank Online
You need to open your Demat Account in the same holder combination, as you own the physical shares/securities.
Thus, if you currently own shares in the names of A, B and C - your Demat Account also needs to be opened in the same holder combination. In addition to the above, if you also own shares in the name of A and B only, a separate Demat Account needs to be opened in this holder combination.
Please Note: The sequence of the holders in the account is also very important.
However, if you own shares in the names of B, A and C (in this order), then these shares can be Dematerialised and credited to the account opened in the names of A, B and C (in this order). A transposition form would also need to be submitted along with the Demat request.
Please Note: All Demat Accounts with more than one holder are to be operated jointly by all the holders i.e., these accounts cannot be operated as 'Either or Survivor' or 'Anyone or Survivor'.
There are three modes by which you can transfer the shares from your account:
- Physical Instruction - Transfer instructions, in the specified format (Annexure L) signed by all the holders of the Demat Account, must be handed over at any Citibank branch
- Citibank Online* - The Internet banking platform can also be used to give your share transfer instructions
These modes for transfer may be used only if the other (i.e., transferee) account is with Citibank or with any other Depository Participant with NSDL. If the transferee account is with a Depository Participant affiliated with CDSL, you need to sign and submit an Inter Depository Transfer Instruction.
* These services can be availed only if you have signed the 'Share Transfer Form cum POA'.
You can avail the following additional services for your Demat Account:
- Pledging shares in your account to avail an overdraft
- Freezing the account/any specific security/specific quantity of a security
- Nomination facility
In case of:
- Dividend - for shares held in the Demat Account, the amount will be credited to your linked Bank Account
- Bonus - the bonus shares will automatically be credited to your Demat Account
- Rights - the allotted shares will be credited to your Demat Account or sent to you as physical certificates depending on the instructions you mention in the Rights application form
Dematerialisation is the process by which your holding of physical share certificates is converted into an electronic record. The shares then reflect as a credit balance in your Demat Account. Dematerialised shares do not have any folio number, certificate number or distinctive numbers i.e., they are fungible.
To Dematerialise your shares, you need to submit the physical share certificates along with a Dematerialisation Form (DRF) to your Depository Participant. They will send the share certificates to the R & T Agent of your company, who will check and confirm if everything is in order. On confirmation, the shares will be credited to your Demat Account.
The electronic form is more popularly called the 'Dematerialised' form. The foremost and most important reason to convert it is because it is now mandatory to deliver the shares (for most script's as specified by SEBI) in Dematerialised form only, if you are selling the shares. Thus, if you hold physical shares, you may not be able to sell them. Additionally, there are several advantages of holding shares in the Dematerialised form:
- Elimination of risks associated with physical certificates e.g. theft, loss in transit, mutilation, fire, etc.
- Reduction in handling huge volumes of paper
- Elimination of problems related to change of address, transmission, etc.
- Faster settlement cycle. You therefore get your money/shares much faster
- Periodic statements and hence ease of portfolio monitoring
- Lower costs due to lower brokerage rates charged by brokers and no stamp duty
- There is no minimum lot in case of Dematerialised shares. You can therefore buy/sell even 1 share
- There is greater transparency in the whole process
- Continue holding them as free shares in your Demat Account
- Transfer the shares to any other person who has a Demat Account
- Sell these shares
- Pledge them to avail a loan/overdraft
Yes, you will need the services of a broker who will help you execute your buy/sell transaction on the exchange.
You need to inform him that you want the shares credited to your Demat Account. You will need to provide him with your Demat Account details.
It is very simple. All you need to do is fill and sign the transfer instructions (Annexure L), which is akin to a Bank Account cheque book - and hand it over to your Depository Participant. Your broker should be able to help you with the type of instruction ('On-market' or 'Off-market' instruction) and the relevant details required for such an instruction. In all probability, you will need to do an 'On-market Transfer' to your broker by entering the following details:
- CM BP ID - Clearing Member Business Partner ID of your broker
- Settlement Number - the settlement number in which your shares were sold on the exchange
- Market Type - the market type in which your shares were sold on the exchange
All these details will be provided to you by your broker.
Please remember there are strict deadlines within which the shares must be transferred.
In India, we currently follow the T+2 rolling settlement cycle. Simply stated, the broker through whom you have sold your shares needs to deliver the same to the exchange on the 2nd business day after the day of trade. Hence, you need to deliver the shares to your broker latest by day T+1 i.e., the next business day.
E.g. if you have sold your shares on Monday (Day T), you need to transfer the shares to your broker latest by Tuesday (Day T+1) to enable the broker to deliver the shares to the exchange on Wednesday (Day T+2). (Please also see the time limits for instructions on Citibank Online)
Annexure L is a transfer instruction form, which needs to be signed by all the joint holders of the Demat Account, and submitted to the Citibank branch. The Annexure L is akin to the cheque book for your Bank Account.
A personalized Annexure L booklet is sent to you along with your welcome kit at the time of account opening. For additional booklets, you need to send a request signed by all the holders of the account.
All instructions that you give on the net have to be authorized by you using your IPIN. This password should be known only to you. For further security,on successful addition of payee, alert will be sent through SMS via mobile(registered) and email(registered). Only 3 payees in the last 24-hours can be added across all transactions and across all linked accounts. There will be a limit of Rs.30000 for the first 24 working hours(excluding certain restricted days) for the payee added. Post 24(for holidays and restricted days, it will be higher)hours of addition of payee, customer will be able to transact according to the existing Citibank Online transaction limits.
Moreover, for instructions given by you and which are still pending execution, you also have the option of cancelling the same.
The details required depend on the type of transaction you are doing -
The following details need to be provided:
- CM BP ID i.e., the Clearing Member Business Partner ID of the broker
- Market Type
- Settlement Number
Your broker can help and provide you with all these details.
The following details need to be provided:
- DP ID i.e., the Depository Participant ID where the target Demat Account has been opened
- Client ID i.e., the target Demat Account number