A Step-by-Step Guide to Opening a Joint Demat Account 

A demat account is one of the most important components in the securities trading process. With the application of technology, it has become convenient to open a demat account without any paperwork or extensive time and effort. You can open a demat account online and start trading. 

There is also the option to open a joint demat account. In this article, we shall discuss what is a demat account, how to open a joint demat account, and what are the various salient features of a joint demat account. 

What is a Demat Account?

A demat account is an account that holds your market-linked securities in a dematerialised state. Once your buy or sell orders placed through the linked trading account have been executed, securities get credited/ debited from your demat account. With demat accounts, it is convenient to access your investment portfolio at any time and recalibrate it if required. 

What is a Joint Demat Account 

Now that we have discussed what is demat account, let us turn our focus towards joint demat accounts. As its name suggests, a joint demat account is a demat account held by more than one individual. 

Each account holder can access such an account and carry out transactions. However, there is only one primary account holder for a joint demat account and the other holders are termed as secondary account holders. 

Salient Features of a Joint Demat Account 

In addition to the features of demat accounts in general, there are some specific features of joint demat accounts, for instance:

• Only individuals who are 18 years old or older can be account holders in a joint demat account. 
• A joint demat account can have a maximum of three account holders.
• The Know Your Customer (KYC) documents of each account holder have to be submitted in order to open a joint demat account. 
• After the opening of a joint demat account, the names of the holders thereto cannot be changed. 
• The demat account fees for a joint demat account has to be paid by all the account holders in equal proportion. 
• The liability to pay taxes pertaining to the securities in a joint demat account lies with the primary account holder. 
• In the event of the death of the primary account holder, the secondary account holder/s can continue holding and operating their joint demat account. 

Steps Required to Open a Joint Demat Account 

Now that we have discussed what is a demat account and what are the salient features of a joint demat account, let us delve into the steps required to open such an account.

• Select A Depository Participant

The first step towards opening a joint demat account is selecting a credible depository participant. While selecting a DP, you must consider several factors, including demat account features, demat account fees, the DP’s customer service and compliance record, etc. 

• Complete the KYC Requirements

After choosing a depository participant, you must visit their official website and fill the online demat account opening form. The relevant personal details of all the account holders must be entered in the approp fields. 

Subsequently, you must submit the aforementioned form along with the KYC documents of all the account holders; these documents include the copies of each account holder’s Permanent Account Number (PAN) card, proof of identity, proof of address, bank account details, and recent passport size photographs. 

• Carry out In-person Verification

The next step is to complete the In-person Verification online. This step is necessary for identity and document verification by the selected DP. 

• Start Using Your Joint Demat Account

Once your DP has opened your joint demat account and shared the account credentials, you can access their trading platform and start using your demat account. You must also have a functional trading account to place buy and sell orders in the securities market. 

The Bottomline 

The process of opening a joint demat account is similar to that of a demat account with sole ownership. However, the requisite personal details of all the account holders are required to open such an account as are their KYC documents. 

Furthermore, a joint demat account is held jointly by all the account holders and the demat account fees are levied jointly on each.