How to Use a Demat Account?

Close your existing Demat account and transfer all your holdings at one go (Recommended)
In case clients chose this mode of transferring securities, they can end up saving costs on off-market transfer of shares which shall otherwise be applicable if single/specific securities are transferred from one Demat account to another. This is because SEBI mandates that in case of closure cases, no charges can be levied by the DP as can be levied in case of off market transactions. No charges shall be levied by SAMCO for such incoming transactions but the existing DP may charge for outgoing transactions.

Steps:

1. Request a Client Master Report Copy i.e. CML copy from the target Depository participant i.e. in this case SAMCO Account.
   This CML copy shall contain exhaustive details like your Name, PAN, Date of birth, BO ID, etc. CML copy is sent to you at the time of your account opening. In case you haven’t received the same, you can request a copy by raising a support ticket at www.samco.in/support

2. Submit the CML Copy to your existing Depository Participant along with an account closure form and Delivery instruction slip of your existing Demat account
   Once you submit these documents, your existing depository participant shall execute the instruction and transfer your securities.

3. Confirm that your stocks have been credited to your SAMCO Demat account
   As a prudent practice it is advisable to double check that the credit has been received at your target Demat account i.e. in this case SAMCO Demat account.

Transfer specific securities from your existing Demat account to your new SAMCO Demat Account
In case clients chose this mode of transferring securities, they shall be liable to incur off market transaction charges that shall be levied by the existing DP. No charges shall be levied by SAMCO for such incoming transactions but the existing DP may charge for outgoing transactions.

Steps:

1. Identify the type of transaction to be stated on the DIS slip to be issued – within CDSL off market or Inter DP i.e. between NSDL and CDSL
   In case your existing account is an NSDL account, you shall be required to select the Inter DP option/Transfer Outside CDSL option and in case your existing Demat account is a CDSL account, then you shall be required to select the within CDSL option.

2. Issue a delivery instruction slip of your current/existing Demat account to your depository participant
   While submitting this delivery instruction slip correctly enter your SAMCO BO ID i.e. a 16 digit BO ID which starts with 12054200 followed by (Your 8 Digit SAMCO DP Client ID) Ex. 12054200XXXXXX52. In case you don’t have your BO ID handy, you can request for the same by raising a support ticket at www.samco.in/support
   

3. Confirm that your stocks have been credited to your SAMCO Demat account
   As a prudent practice it is advisable to double check that the credit has been received at your target Demat account i.e. in this case SAMCO Demat account.

Pledgor and Pledgee shall have account in CDSL only
The pledgee’s Demat account could be in Samco Securities DP or another DP as well.

Pledgor to submit Pledger request form to Depository participant - Samco
This shall be submitted in duplicate copies

Samco Securities i.e. the Depository participant shall setup a pledge in the Depository system
A unique PSN i.e. Pledge sequence number shall be generated.

Pledgee to accept the Pledge through it’s DP
In case the Pledgee has standing instructions to accept pledges, this step shall be skipped

Pledge is created
Once the pledge is accepted by the pledgee, pledge of the pledgors securities is created in the Depository system.

Pledgor i.e. customer to initiate a pledge request from the Back office Samco Star
Customer shall be required to select the quantity and the ISIN/security to be pledged. Only permissible securities shall be available from margin pledging.

Samco Securities i.e. the Depository participant shall initiate setting up a margin pledge in the Depository system
A unique PSN i.e. Pledge sequence number shall be generated by Samco and send to CDSL and CDSL shall in turn send an link for confirmation on the customer registered email and mobile for confirmation.

Customer to confirm the margin pledge on CDSL’s web page received on email/mobile.
This confirmation can be done by entering the CDSL TPIN. This works as a dual confirmation of pledge.

Margin Pledge is created
Once the pledge is accepted by the pledgee, margin pledge of the clients securities is created in the Depository system.

Submit Demat Request form (DRF) to DP i.e. Samco Securities Limited
A filled and signed DRF along with the physical share certificates needs to be submitted to our office.

DP i.e. Samco Securities Limited will setup the Demat request with Depository system.
Samco will verify the details and setup the Demat request in the DP system. We will then also deface and mutilate the certificate and send the same along with the DRF to Issuer company and the RTA i.e. Registrar of the company.

Confirmation by Issuer and RTA
On receipt of confirmation by the issuer/RTA, the securities shall be credited to the customers Demat account held with Samco.

Submit Demat Request form (DRF) to DP i.e. Samco Securities Limited
It is advisable to hold two separate Demat accounts from an income tax point of view - one for trading and the other for long-term investments. This is because otherwise, in certain cases, assessing officers may decide that all transactions are of trading nature and classify the income as business income, which is taxable at higher rates. Segregating the two accounts clears all doubts and will ensure that you can enjoy the benefits of lower capital gains on long-term investments.

Reconcile dividends and other corporate actions for securities in Demat account
Investors should periodically reconcile all corporate actions received in form of dividends, right entitlements, splits, bonus shares, etc and ensure that all the benefits have been correctly enjoyed by them. In case shares are pending for settlement in brokers pool accounts, make sure appropriate credits are given to the trading ledger account in such cases.

Recording off-market transfers correctly from accounting point of view
It is very critical that off market transactions by way of gifts/purchase/sale are recorded correctly in an investors books of accounts. This is to ensure compliance with income tax laws as well as anti-money laundering laws.