FAQs

What is Dematerialisation or Demat?
Dematerialisation (Demat) is the process of converting your physical (paper) shares into electronic form. Almost all share transactions now take place in Demat form.

How do I benefit from Demat?
With Demat Services, you won't have to worry about bad deliveries, forgery and duplicate or stolen share certificates. Apart from safety, you can also save on transaction costs.

How do I save on transaction costs?
You no longer have to pay any stamp duty when you transfer your shares. What's more, we take just 3-4 weeks to dematerialise your shares. And when you buy shares deliveries are quick.

How can I open a HSBC Demat Account?
You have to open a separate account for dematerialisation. Please visit any of our branches to open a demat account. If you already have a Demat account elsewhere, you could also transfer the balance by requesting for a transfer.

How can I buy and sell my shares after Demat?
You can continue to buy and sell shares, as usual, through your broker. After you sell shares, you need to instruct HSBC to transfer your shares held in the demat form. Shares bought by you will be automatically credited into your account.

What happens to my Bonus and Rights Issues?
You don't have to worry at all. We'll receive New Issues, Rights and Bonus Issues in Demat form on your behalf. Do remember to instruct your company accordingly.

How can I keep a track of my share portfolio?
We will provide to you a quarterly statement which shows the current portfolio of your shares and also a transaction statement on a monthly basis, if you have transacted in the preceding month. This helps you keep a record of your shares and further ensures their safety.

How do I get an overdraft against my Demat shares?
You can get up to Rs. 20 lakhs overdraft against select Demat scrips, through our Asset Link facility. Interest rates for loans against Demat shares are lower than the rates for loans against physical scrips.

Why is HSBC the right choice?
You can expect the same high quality service from our Depository Services that is synonymous with HSBC. Besides, we are among the key players in custodial services in India.