Changing the name in the Demat account for various reasons, whether minor or major, is very crucial. In addition, it is a streamlined process and you can change it by following some basic guidelines and having the necessary documents. It ensures flawless account proceedings, accurate investment records and identity assurance.
The Demat account name change process basically involves filling out a form you can get from your Depository Participant (DP). In this blog, we will provide a comprehensive guide on the Demat account name change process.
Importance of Name Change in Demat Account
Your name in a Demat account is a crucial factor the intermediaries use to process your transactions and other services. It is important to maintain compliance and ensure accurate transactions. Here are a few reasons why you should change name in the Demat account:
1. Legal Compliance
A mismatch between your name in the credible documents (PAN card, Aadhaar card and Voter ID card) and your Demat account can hinder compliance with regulatory bodies. It will be difficult for you to trade and manage investments.
2. Ensures KYC Approval and Other Modifications
Any services in the Demat account such as KYC approval, broker change or any other modification in your account will require a thorough check of documents. Hence, a mismatch in name can cause rejections.
3. Dividend Claim
Companies distribute their annual dividend based on the name registered in the Demat account. A mismatch in name can cause trust issues and claiming the dividends might be difficult.
4. Streamlined Inheritance process
In case of the uncertain demise of a person, the legal successor of the person can easily inherit their ward’s shareholdings. If the names do not match, they will not be able to inherit the securities stored in the Demat account of the deceased person.
Documents Required for Demat Account Name Change
The documents required procedure to change name in Demat account varies from one reason to another. Here is a list of documents you must submit when you want to change your name in the Demat account, according to the valid reason:
1. Minor Changes in Name
Here, minor changes mean spelling correction, interchange of first and last names, expanding initials, etc. For example, “Manoj Agarwal” to Monoj Agarwal/ Manoj Kumar Agarwal). The following is the list of documents you must submit for such a reason:
- PAN Card
- Aadhaar Card
- Voter ID Card
- KYC Copy
2. Change due to Marriage or Divorce
Generally, women change their names in India after marriage. Moreover, people can change their names after divorce. In such scenarios, they must change their name in the Demat account. Here is a list of documents they must submit when changing their name due to divorce or marriage:
- PAN Card
- Aadhaar Card
- Voter ID Card
- KYC Copy
- Marriage/Divorce Certificate
- Passport
3. Other Reasons for Name Change
There can be various other reasons when you want to change your name in the Demat account. Here is a list of documents you must submit during such scenarios:
- PAN Card
- Aadhaar Card
- KYC Copy
- Address Proof
However, the documents required are generic and might differ from one broker to another. Hence, you must check with your broker for specific documents you must submit for Demat account name change.
Steps to Change Name in Demat Account
Investors change their name in the Demat account for various reasons such as marriage, divorce, errors, etc. The procedure to change Demat account name can appear lengthy, but it is a hassle-free process. Here are the steps if you are wondering how to change name in Demat account:
1. Contact your Depository Participant
The DP is responsible for managing your Demat account. They act as the registered middleman between the depository and investors.
2. Fill Out the Name Change Form
The DP will provide a name change form. You must duly fill out the application form with valid information and submit it back to the DP for verification.
3. Submitting Required Documents
Submit the required documents as asked by the broker, such as PAN card, Aadhaar card, etc. Make sure your documents are updated and accepted by the regulatory bodies.
4. Verification and Confirmation
Once you submit the form with the required documents, the Depository Participant (DP) will verify them. It might take three to five working days to verify its credibility. However, they might ask for more supporting documents according to their requirements.
Once the depository approves your application, your Demat account name change will be done. You will receive a confirmation through mail or post.
Final Words
Updating your name in the Demat account is crucial for seamless account functionalities. Be it a minor change or a major change, you must not overlook the Demat account name change. In addition, remember the Demat account name change might take some time to process. In the meantime, you cannot carry out any buy or sell orders. It is wise to make necessary strategic steps that will be able to hold your transactions for the next few days.
If you are planning to open a Demat account, you can visit the Torus Digital platform to open a Demat account for free!
