What is the mode of operation feature for a joint demat account?

CDSL has introduced a Mode of operation feature for joint demat account holders to enable any of the account holders to carry out specific operations without requiring the signatures of other account holders. Previously, the signatures of all account holders were necessary for operations in a joint demat account. However, with the introduction of the new mode of operation, any one of the joint account holders can independently perform such operations without requiring the signature of the other account holders.

The mode of operation is only applicable for the following operations:

1. Off-market transfer: Any account holder can transfer securities to other demat accounts without requiring the signatures of other account holders. To learn more, see How to transfer shares from a Zerodha demat account to another demat account offline?
2. Pledge: Any account holder can pledge securities with a bank or any NBFC without requiring the signatures of other account holders. To know the steps to avail LAS from other NBFCs, see How to avail Loan Against Securities(LAS) from other NBFCs?
3. Freeze/unfreeze: Any account holder can freeze or unfreeze the securities in the demat account without requiring the signatures of other account holders. To learn more, see How to freeze or unfreeze the stocks in the demat account?

To enable the mode of operations for the existing joint demat account with Zerodha, follow these steps:

1. Print out the mode of operations form (PDF).
2. Fill in the demat account number column with the 16-digit demat ID. To learn more, see What are DP name, DP ID, BO ID and demat ID?
3. Select the option Anyone of the holders or survivor(s) by ticking the appropriate box.
4. Obtain the signatures of all joint account holders on the form.
5. Courier the form to:
   
   Zerodha Customer Support Centre,
   680, Fortuna 1, 15th Cross Road,
   8th Main Road, 2nd Phase, J. P. Nagar,
   Bengaluru, Karnataka, 560078
   

The mode of operations will be enabled within 72 hours of receiving the form.

To enable the mode of operations feature when opening a new joint demat account with Zerodha, tick the box next to Anyone of the holder or survivor(s) on page 16 of the joint demat application form. Alternatively, if someone decides not to enable the mode of operations, they can tick on Jointly. To learn more about joint demat account opening, see How to open a joint demat account at Zerodha?