How to update personal details in a demat account? A step-by-step guide

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Investors are required to update their demat account details whenever there is a change in KYC (Know Your Customer) information. Whether there is a change in local address, surname, nominee details or bank details, an account holder should update the information on a demat account to comply with regulatory guidelines.

It also helps in seamless communication between the depository participant (DP) and the investors. Keeping your demat account details updated also easily facilitates all investments and transactions in capital market instruments.

What is the demat account?

A demat account is used to keep company shares or other securities in digital format. The account is needed for trading in stocks and other securities. Earlier, shares and other securities like bonds and mutual funds were traded and kept in physical form in certificates. Trading in these securities required a lot of paperwork as each time a share was traded a new certificate had to be issued.

To do away with the paperwork and bring efficiency in securities trade, India in 1996 introduced demat accounts on the National Stock Exchange. Central Depository Services Limited and National Securities Depository Ltd provide services to keep securities in non-physical form.

The stock exchanges adopted the dematerialisation exercise to convert physical certificates into electronic formats.

A demat account offers a safe way to hold shares digitally and lowers the risk of theft, forgery and damage to physical certificates. An investor can easily track his holdings and the performance of the securities through demat accounts.

Steps to open demat account

Investors who want to trade in Indian stock markets need to open a demat account. These accounts are primarily opened by Sebi-registered depository services providers CDSL and NSDL.

An investor needs to follow simple steps to open a demat account, which is similar to opening a bank account. First of all, an investor needs to select a DP to open the account. For opening the account you can file a duly filled form with the DP and submit required documents. Several banks, non-banking financial companies (NBFCs) and brokerage firms are also offering the demat account services in association with DPs.

Important documents required for opening a demat account include PAN, address proof, income proof, ID proof and photographs. After the verification by the DP, the account is opened.

An investor can easily open a demat account through an online process. With the advent Aadhaar verification system, demat accounts can be opened without visiting any branch or office.

How to update personal details in a demat account?

Keeping KYC details updated in the demat account is necessary for regulatory compliance. You should make the modifications to personal details if there is any change in residential address, PAN, phone number or communication address.

Simple details like address, registered email or phone number can be updated easily by investors through the various forms provided by the depository participant of a broker. These forms are easily available on the websites of the DPs.

NSDL and CDSL also provide easy options through their websites to change details in demat accounts. Investors need to fill in details such as DP ID, client ID and PAN number to login into the demat account. After verification, the account holder can update the details.

How to update name, surname in demat account?

An account holder needs to submit a notarised copy of the name change as published in a national newspaper or official gazette. The requirement may arise due to a number of reasons such as change in name after marriage, divorce or some correction in spelling. Additional documents such as marriage certificates may be required for verification.

Update bank details

Bank details can be updated easily in the demat account. You can download a form from the DP’s website. The form requires details such as Name, PAN, Folio number. A cancelled cheque, self-attested copies of ID proof and details of new bank account should be provided to update the demat account records.

Update nominee details

Market regulator Securities and Exchange Board of India (SEBI) has made it mandatory to fill nominee details in the demat accounts. SEBI had set the deadline as December 31, 2023, for updating nominee details in demat accounts.

An account holder can change the nomination anytime. This can be done easily by filling a simple nomination form and submitting it to the DP.

Nominee details can also be updated on NSDL website by filling details such DP ID, Client ID, and PAN. After verification through OTP, an account holder can select a nominee or ‘Opt Out’.

Conclusion

Every DP provides easy access to various forms to update details in the demat account. It’s important for you as an investor to keep your demat account updated as per latest personal details. This helps in seamless transactions and receiving payments.