Why should one open a joint demat account?
To convert jointly held physical shares to digital (demat) form or transfer them between joint demat accounts, here are a few key things to keep in mind:
- Conversion to Demat: Open a joint demat account in the same names as on the physical share certificates to convert them to digital form.
- Transfer Between Brokers: Shares can be transferred from one joint demat account to another, as long as the names and order of holders are identical.
Key Points to Note
- Tax liability on profits/losses is attributed to the first holder in a joint account.
- If you're opening a joint account just to add a nominee, it's better to open an individual account and add a nominee online.
- Names on the account may not match submitted documents because Firstock fetches names directly from Income Tax Department (ITD) records.
