Question 1

What is a demat account and what are the types of demat account?

Accepted Answer

A Demat account is an account that holds financial securities in electronic form. In India, Demat accounts are maintained by two depository organisations, NSDL (National Securities Depository Limited) and CDSL (Central Depository Services Limited).

There are 3 types of Demat account:

Regular Demat Account: For the investors/traders who reside within India.
Repatriable Demat Account: For the NRIs. Funds can be transferred abroad. It requires an associated NRE bank account.
Non-Repatriable Demat Account: For the NRIs. The fund cannot be transferred abroad. It requires an associated NRO bank account.

Question 2

What are the benefits & uses of a demat account?

Accepted Answer

A Demat account helps keep your equity investments, your mutual fund units, bonds, and other financial assets safe and secure in an online electronic environment. With a Demat and trading account, you can not only invest in upcoming IPOs of companies but also start a mutual fund, digital gold and SIP as well.

Heres a quick look at some of the other uses of a Demat account:

Enables easy and quick share transfers.
Highly secure storage with zero risk.
Can be accessed at any time from anywhere through the internet.
Very less paperwork involved.

Question 3

Who can open a demat account?

Accepted Answer

Any individual resident of India, HUF, NRI, proprietary firm, partnership firm or company can open a Demat and trading account with Motilal Oswal.

Question 4

What documents are required to open a DEMAT Account?

Accepted Answer

To open a DEMAT and Trading Account with Motilal Oswal, individuals are required to hold the following documents handy:

PAN Card.
Aadhaar Card (Linked with Mobile Number).
Bank Account Statement or Cancelled Cheque.

Question 5

What charges are applicable to open a DEMAT Account?

Accepted Answer

There are no charges applicable to open a DEMAT Account with Motilal Oswal. You can open a DEMAT Account online instantly at 0 cost.

Question 6

What is the minimum amount required to open a DEMAT Account?

Accepted Answer

There is no minimum amount required to open a DEMAT Account with Motilal Oswal. You can open your DEMAT and Trading account with Motilal Oswal for Free.

Question 7

Can I open two/multiple demat accounts?

Accepted Answer

Of course. You can open multiple Demat accounts under your name as long as the Demat accounts are not with the same Depository Participant (DP). For instance, if you already have a Demat account with another DP and wish to open another one with Motilal Oswal, you can do so.

Question 8

How to open an online/paperless Demat Account?

Accepted Answer

To open an online DEMAT Account with Motilal Oswal, you are required to follow the given below steps:

Download and install the MO Investor application on your mobile phone.
Register with your mobile number and verify it with an OTP.
Register with your email id and verify it with an OTP.
Add your PAN Card details.
Add your Bank details.
Add your Aadhaar Details.
E-sign through Aadhaar-based OTP verification.
Complete your DEMAT Account Activation.
Alternatively, you can also log in through web, by clicking on www.motilaloswal.com/open-demat-account/ and performing the same steps as above.

Your Demat Account credentials will be sent to your registered email id once the account is activated successfully.

Question 9

Can a demat account be opened in the name of Joint Holders?

Accepted Answer

Yes, a demat account can be opened in single or joint names. However, a demat account can have a maximum of three account holders - 1 main holder and 2 joint holders.

Question 10

Can an NRI open a demat account in India?

Accepted Answer

Yes, a Demat account can be opened in single or joint names. However, a Demat account can have a maximum of three account holders - 1 main holder and 2 joint holders.Of course. It is certainly possible to open a Demat account for NRIs through Motilal Oswal. But to do so, you will have to possess either an NRO or NRE bank account and submit a Portfolio Investment Scheme letter of approval from the Reserve Bank of India along with your Demat account application form and other supporting documents.

Question 11

Can I open a demat account without opening a trading account?

Accepted Answer

No. You cannot hold a Demat Account without a Trading Account. A Demat Account is only an account to hold your shares. If you intend on selling the shares, you will need a trading account.

Question 12

Can I link demat and trading account?

Accepted Answer

Yes. If you intend to sell the shares that you hold, you will need to link your Demat account with your Trading account.

Question 13

What is a joint demat account?

Accepted Answer

Just like a Joint Bank Account, a Joint Demat Account is a shared Demat account in between two or three individuals. Only one demat account holder is registered as the primary account holder, while the other account holders become secondary account holders.

Question 14

How long does it take to open a demat account?

Accepted Answer

It takes only 15 minutes to open a Free* Demat account with Motilal Oswal.

Question 15

Is demat account compulsory to apply for an IPO in India?

Accepted Answer

Yes. If you intend on applying for an IPO in India, it is mandatory to hold a Demat account. However, the choice for a trading account is optional.

Question 16

Can I withdraw money from a demat account?

Accepted Answer

Yes. You can add and withdraw funds from your Demat account anytime.

Question 17

How to check Demat account balance?

Accepted Answer

To check your funds on MO INVESTOR, follow the below given steps

Login to the app
Go to Menu
Select Fund Transfer
The screen will display Available Margin which will be your Demat Account Balance

Question 18

Do I require a Demat account for SIP?

Accepted Answer

No, it is not mandatory to hold a DEMAT Account to invest in SIP Plans. However, if you wish to start Stock SIP, you will need to have a DEMAT Account.

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