Mr. Satish holds 100 shares of Raj Company Ltd. in physical mode and wishes to convert the same into electronic mode :(a) Mr. Satish holds a Savings Bank Account with SBI. Can he deposit his shares in this account for demat?(b) What type of account i…

Answer: (a) No. (b) A demat (beneficial owner) account with a Depository Participant. (c) No, the depository (NSDL or CDSL) is the custodian.

(a) No. A savings bank account holds money, not securities. Shares cannot be deposited in it for dematerialisation.

(b) Mr. Satish must open a Demat account (Beneficial Owner account) with a Depository Participant, such as a bank or a broker registered with a depository. He then submits a Demat Request Form with his share certificates to the DP.

(c) No. After dematerialisation the shares are held in electronic form by the depository (NSDL or CDSL), through the DP. The RBI has no role in holding shares.