Just like mobile network portability, soon you will be able to port your demat account if you’re dissatisfied with the service.
Under the proposed Demat Account Portability system, you can transfer your account from one depository or broking house to another without closing it.
This means if you are unhappy with your current broker’s service, you can seamlessly move your account elsewhere. SEBI is expected to unveil this master plan soon.
SEBI’s Efforts to Launch the System
Sources reveal that SEBI is actively working on launching this service, with discussions already underway with brokers and depositories.
To make this system operational, brokers and depositories will need to adapt to technological changes.
A major challenge lies in retaining the same Depository Participant ID and account number during the transition.
SEBI plans to address these technical issues before officially rolling out the system.
Benefits of Demat Account Portability
Experts have praised this move, highlighting several benefits:
Encourages Healthy Competition: Good brokers will benefit, while weaker brokers will be motivated to improve their services.
Better Services and Lower Costs: Increased competition will push brokers to offer better services at competitive rates.
Simplified Process: Users won’t need to close their old account and open a new one. They can simply switch to a better option.
Enhanced Transparency: This initiative will bring more transparency to the capital market.
Surge in Demat Accounts After COVID-19
The popularity of demat accounts has soared post-COVID-19. By 2024, the total number of demat accounts in India reached 46 million, with an average of 3.8 million new accounts being opened every month.
This growth underscores the rising interest in stock market investments among Indians.
