Demat Account Opening Charges, Benefits & Features – An Overview

In this article, we will get into details of Demat Account Opening Charges, Benefits of Demat Account & various features of Demat Account.

Demat Account Opening Charges

Demat Account Opening ChargesWhen someone says about opening a Demat account, it means an account which allows the investors to hold the shares in an electronic form. Whatever stocks are present in the Demat account remains in the Dematerialized way.

Dematerialization means the conversion of physical shares into the electric format. The Demat account can be started with zero balance. The shares hold a lot of long processes, paper works and the risk of fake shares.

Many Stock Brokers do not charge anything as demat account charges. They give it for free to their customers. While some stock brokers charges demat account opening fees or annual maintenance charges for opening a demat account.

Some brokers also offer lifetime free demat account. This means no requirement of paying any demat account opening charges. AMC is also free for lifetime.

Apart from Demat Account Opening Charges, the stock broker also charges few SEBI charges, Turnover Charges, Trasaction charges & others.

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Demat Account Facts that one should know

You will need some proof to open a Demat account. So you will need PAN card, identity proof, Proof of residency, Bank account details and a recent passport size photo.

Before you opt for opening a Demat account, there are certain facts that you must know.

  • There are no opening charges for a Demat
  • Monthly charges are only levied, and all charges are made transparent to their customers.
  • Delay in the monthly payment can result in the freezing of account.
  • The charges and subject to change depending on the Company’s decision.

Demat account opening charges

There are no opening charges for a Demat account. Every share broker will ask for the transaction or operational fees. If one fails to pay these fees the account might end up in freezing the account.

Demat account features

  • Easy transfer of the shares. The customers can transfer with the help of a Delivery Instruction slip or the receipt institution. The slip has all the details which are needed for the transaction to be done.
  • Multiple accessing modes: as these accounts are opened online; the accounts can be accessed with the help of various accounts from tablets, phone or computer.
  • One can freeze their Demat account for a certain period. This is good for the people those who do not want any debit or credit in their Demat account. They have this option on a specified quantity of securities in the account.
  • The account also permits the lenders to give off the loan against the securities in the Demat account of the people borrowing.
  • The E- facility: it helps the National Securities Depository Limited to send instruction slip electronically than one going physically and submitting it. This is more convenient and does not consume much.
  • The corporate benefits are that if a company offers the account holder with dividends, refunds or the interest to their investors, it directly comes to the Demat account. Other corporate actions like right shares, bonus issues or stock split are automatically updated in the account of the shareholders.
  • Dematerialization helps to convert the physical certificate in the electronic form and vice versa, the electronics form can be converted to the physical certificate.

Benefits of a Demat accounts

  • Physical securities are very risky because of the fear of thefts, any damage or loss or any fake securities may pose to have a further risk. The risk is eliminated with the Demat account opening. The Demat account holders have the option to hold the investment in electronic form.
  • The demat account holders can make a track of all the investments through a single account. The maintenance of the physical certificate is a very tiring job.
  • While using physical certificates, buying and selling were fixed to only certain quantities. The dealing with odd lots or single security was not available and demat eliminates the issue.
  • The physical certificate has a lot of extra charges while the Demat account eliminates all these unnecessary charges while using electronic security.

Demat Account Concepts and Processes

  • Transfer, closure cum Waiver: the individuals can transfer from an existing demat account to other institution without any extra charge.
  • The Depository Concept: A depository is where all the electronics securities are held, in a centralized location. There are two of such depositories: National Securities Depository Limited. And Central Depositories Service Ltd.
  • Securities Dematerialization: here all the physical securities are converted into the electronic securities. All the transaction is done
  • Transposition cum Demat: if the names on the demat account do not match the names on the physical certificate on can submit a Transposition cum Demat form and submit DP to convert it into the electronic forms.

Every shareholder must use a Demat account to keep their stock and money safe in an electronic mode.

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List of all Full-Service Brokers in India –

Angel Broking , Motilal Oswal , Kotak Securities , HDFC Securities , Sharekhan , India Infoline / IIFL , ICICI Direct , Edelweiss , Karvy , SBI Cap Securities , Geogit BNP Paribas , Anand Rathi , Religare Securities , Indiabulls Ventures , Just Trade , Ventura Securities , Aditya Birla Money , Axis Direct , SMC Global , GEPL Capital , IDBI Direct , GCL Securities , Arihant Capital , Mangal Keshav , MasterTrust , Networth Direct , Reliance Securities , Sushil Finance , LSE Securities

List of all Discount Brokers in India –

Zerodha , 5Paisa , Upstox / RKSV , Samco , SAS Online , Wisdom Capital , Trade Smart Online , Tradejini , Beeline Broking , Compositedge , RK Global , Achiievers Equities , Bonanza Portfolio , MDirect , TradingBells , EzWealth , Fyers , Fortune Trading , Prostocks , Tradeplus Online , Finvasia , Zeroshulk , Alice Blue Online

List of Stock Broking Franchise in India –

Angel Broking Franchise , Kotak Securities Franchise , ICICI Direct Franchise , Sharekhan Franchise , Motilal Oswal Franchise , IIFL Franchise / India Infoline Franchise , SMC Franchise , Nirmal Bang Franchise , Sushil Finance Franchise , Profitmart Franchise , IDBI Direct Franchise , Ventura Securities Franchise , Sykes & Ray Franchise , Ski Capital Franchise , Geojit Franchise , Edelweiss Franchise , Arihant Capital Franchise , Fyers Franchise , Narnolia Franchise , Anand Rathi Franchise , Choice Broking Franchise , Elite Wealth Franchise , Just Trade Franchise , Karvy Franchise , Swastika Investment Franchise , Prabhudas Lilladher Franchise , IFCI Franchise , Religare Securities Franchise

Important Blog Posts –

Top 10 Stock Brokers in India , Best Stock Broker in India , Top 10 Intraday Trading Brokers in India , Top 10 Sub Broker Partner in India , Full Service Broker vs Discount Broker in India , 10 Best Practices of Share Market Investment , Mutual Fund vs Real Estate Investment , Top 10 Full Service Brokers in India , Top 10 Discount Brokers in India , Best Demat Account in India

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