Rights and Obligations of Demat Account Holders

Demat account holders have the right to open and close a Demat account with any depository participant (DP) of their choice. Check here for more on demat account kya hai?

Select Broker: Demat account holders have the right to select a broker of their choice. 

Securities Trading: Demat account holders have the right to trade securities like stocks, bonds and ETFs through their broker. Check here for more on demat account kya hai?

Receipt of Statements: Demat account holders have the right to receive statements from their DP.  Using the best mutual fund app can help you a lot.

Enjoy Corporate Benefits: Demat account holders are eligible for corporate benefits like dividends, bonus shares and rights issues.

Get preferential allotments: Demat account holders are eligible for preferential allotments for new issues of securities. Check here for more on demat account kya hai?

Obligations of Demat Account Holders

Demat account holders also have a number of responsibilities, including the obligation to:

• Minimum Balance Maintain: Demat account holders are required to maintain a minimum balance in their demat account. Minimum balance requirements vary by DP.
• Payment of Brokerage Fees: Demat account holders are required to pay brokerage fees to their broker for trading in securities. 
• Updating Contact Details: Demat account holders are required to update their contact details in case of any changes in their DP. Check here for more on demat account kya hai?
• Inform the DP of any change in your situation: Demat account holders must inform your DP of any change in your situation, such as a change in your address or marital status.
• Follow the terms and conditions of the Demat Account Agreement: Demat account holders are required to follow the terms and conditions of the Demat Account Agreement which they sign with their DP.  Using the best mutual fund app can help you a lot.

Additional Rights and Responsibilities of Demat Account Holders

In addition to the above rights and obligations, Demat account holders also have a number of other rights and obligations. Some of them are:

• Right to access account information: Demat account holders have the right to access information about their Demat account such as securities held in the account and transaction history.  Using the best mutual fund app can help you a lot.
• Right to Complaint: Demat account holders have the right to complain to their DP or the Securities and Exchange Board of India (SEBI) in case of any grievances.
• Obligation to maintain confidentiality of account information: Demat account holders are required to maintain the confidentiality of their account information such as login details and passwords. Check here for more on demat account kya hai?
• Tax Liability: Demat account holders are required to pay taxes on capital gains from securities transactions.

The Final thoughts 

Demat account holders have a number of rights and responsibilities. It is important for demat account holders to be aware of their rights and responsibilities so that they can protect their interests and avoid problems.  Using the best mutual fund app can help you a lot.