What is Depository?
A depository is an organization where the securities of an investor are held in electronic form. A depository can be compared to a bank. To avail of the services of a depository, an investor has to open an account with the Depository through a depository participant, just as he opens an account with the bank. Holding shares in the account is akin to holding money in the bank.
What is a Depository Participant?
A Depository Participant (DP) is an agent appointed by a depository to offer depository services to all investors. To be an authorized DP, the institution shall be a Bank or Financial Institution, Stock Broker, Registrar and Transfer Agent, custodian or entity prescribed by the Securities Board of Nepal.
Who is a Beneficiary Owner (BO)?
The Beneficiary Owner (BO) is the person who holds a DEMAT account.
What is a BO ID?
The DEMAT account number of Beneficiary Owner is known as BO Id. It is a 16 digit unique identification number provided by Central Depository while opening a DEMAT account.
What is a DP ID?
A DP Id is the identification number of the depository participant allotted by depository.
What is Dematerialization?
Dematerialization is the process of converting physical or paper based shares/bond-debenture/mutual funds into digital or electronic form. The main aim of digitization is to smooth the process of buying, selling, transferring and holding shares.
Process to open DEMAT A/C?
- Select Depository Participant (DP):
Most bank and financial institutions, merchant banker and brokerage service firms are referred as Depository Participants.
- Fill an Account Opening Form:
Fill an account opening form to open a Demat account. This includes personal information, contact information, passport size photo, citizenship and pan. Account opening form also includes Depository Participants and Investors agreement comprises terms of agreement, regulation and charges.
- Submit Document for Verification:
Submit a copy of identity, passport size photo along with form for verification. Appearing in person might be required for the verification process.
- Get Beneficiary Owner Id (BOID):
Once all the documents have been verified, Demat account number will be generated. It is also known as Beneficiary Owner Id BOID) that can be used for accessing account, buying/selling/applying shares.
Documents required to Demat Account
- Proof of Identify:
Citizenship, passport, driving license, pan card or any identity card issued by government with photography
- Proof of Contact
- Passport Size Photo
Can one open a DEMAT account from Premier Securities?
Yes, one can open a DEMAT account from Premier Securities.