Demat Account Opening - Procedure

Demat account can be opened with any registered DP or depository participant. One who is wondering how to open Demat account should get a list of registered DPs in the websites of National Securities Depository Limited and Central Depository Service Limited The willing person should fill a demat account opening form.The customer should submit attested photocopies of his/her details. The documents needed for opening a demat account are:
y y y

Pan Card (Pan card would work as a proof of identity normally) Identity & Residence proof Photocopies of passport or driving license You will have to submit a passport size photograph on which you sign across

When opening an account with a bank, you need a minimum balance. Not so with a demat account. A demat account can be opened with no balance of shares. And there is no minimum balance to be maintained either. You can have a zero balance in your demat account. One would have to sign an agreement with DP in a depository prescribed standard format, which details rights and duties of investor and DP. DP should provide the investor with a copy of the agreement and schedule of charges for their future reference. Within 15 days of submitting the form and associated documents the DP will open the account in the system and give an account number, which is also called BO ID (Beneficiary Owner Identification number). You can then start applying for shares or transfer in your shares from other DP's or purchase shares from a broker or even apply for mutual funds, bonds etc.

Demat account charges

There are four major charges usually levied on a Demat account: Account opening fee, annual maintenance fee, custodian fee and transaction fee. All the charges vary from DP to DP.

Demat account opening fee: Depending on the DP, there may or may not be an opening account fee. Annual maintenance fee: This is also known as folio maintenance charges, and is generally levied in advance. Custodian fee: This fee is charged monthly and depends on the number of shares (international securities identification numbers ISIN) held in the demat account. It generally ranges between Rs. 0.5 to Rs. 1 per ISIN per month. DPs will not charge custody fee for ISIN on which the companies have paid one-time custody charges to the depository. Brokerage / Transaction fee: The transaction fee is charged for crediting/debiting shares to and from the account on a monthly basis. While some DPs, charge a flat fee per transaction, some peg the fee to the transaction value, subject to a minimum amount. Some DPs offer a frequent trader account, where they charge frequent traders at lower rates than the standard charges. The fee also differs based on the kind of transaction (buying or selling). Some DPs charge only for debiting the shares while others charge for both. The DPs also charge if your instruction to buy/sell fails or is rejected. In addition to the other fees, the DP also charges a fee for converting the shares from the physical to the electronic form or vice-versa. This fee varies for both demat and remat requests. For demat, some DPs charge a flat fee per request in addition to the variable fee per certificate, while others charge only the variable fee. No charges can be levied by a DP on a Beneficiary Owner (BO) when a BO transfers all the securities lying in his account to another branch of the same DP or to another DP of the same depository or another depository, provided the BO Account/s at transferee DP and at transferor DP are one and the same, i.e. identical in all respects. In case the BO Account at transferor DP is a joint account, the BO Account at transferee DP should also be a joint account in the same

sequence of ownership. The DP may revise the charges by giving 30 days notice in advance. In addition, service tax is also charged by the DPs Once you choose your DP, it will be prudent to keep all your accounts with that DP, so that tracking your capital gains liability is easier. This is because, for calculating capital gains tax, the period of holding will be determined by the DP and different DPs follow different methods. Within 15 days of submitting the form and associated documents the DP will open the account in the system and give an account number, which is also called BO ID (Beneficiary Owner Identification number). You can then start applying for shares or transfer in your shares from other DP's or purchase shares from a broker or even apply for mutual funds, bonds etc.

Dematralised account
As per SEBI instruction for an individual to trade in stock market one is supposed to own a demat account which is a short and popular form of dematerialized account. In India, concept of demat account was adopted in 1996 and because of fast and safe transaction of securities it become popular among all the related entities. Demat account is used for holding securities in electronic form and their transactions too, one need to open demat account with depository participants, because of several advantage over older version of trading , the concept of demat account played an important role to attract new investors inshare market. Using of demat account not only makes transactions safe and fast but it eliminates risks associated with forgery, counterfeiting and loss due to fire, theft or mutilation.

Are you Looking for Lower Brokerage Demat Accounts?

Our team remains in touch with sales agents and customers of different Stock Broking companies on regular basis to update different charges and facilities broking companies offering to their customers. So compare the demat Account Charges below for choosing the best demat account for yourself. Share Broker : India Infoline Demat Account Opening Charges: Rs.750 Demat AMC: Rs.25 p.m. Software Charges: Free of cost Intraday Brokerage: 5p, 2p Delivery Brokerage: 50p, 20p Share Broker : Unicon Securities Demat Account Opening Charges: Free Demat AMC: First yr Free, Rs. 200 2nd yr onwards Software Charges: Free, Browser based software free of cost Intraday Brokerage: 3p, 1p Delivery Brokerage: 30p, 10p Share Broker : IndiaBulls Demat Account Opening Charges: Rs.900 Demat AMC: Lifetime Free Software Charges: Rs.250 Intraday Brokerage: 3p Delivery Brokerage: 30p Share Broker : Kotak Securities Demat Account Opening Charges: Rs.750 Demat AMC: Rs.360 p.a. Software Charges: Free of cost Intraday Brokerage: 6p Delivery Brokerage: 60p Share Broker : Reliance Money Demat Account Opening Charges: Rs.750 Demat AMC: Lifetime Free Software Charges: Free of cost Intraday Brokerage: 4p Delivery Brokerage: 40p

Online Trading Account - Benefits

Online trading account eliminates risks associated with physical certificates such as bad delivery, fake securities, postal delays, forgery, loss due to fire, theft or mutilation Online trading account helps in automatic credit into demat account of shares arising out of bonus/split/consolidation/merger etc. Enables easy receipt of public issue allotments Demat account ensures faster payment on sale of shares and hence more acceptability and liquidity of shares Demat account holders can also avoid stamp duty (as against 0.5 per cent payable on physical shares) No odd lot problem, even one share can be sold via a demat account Change in address recorded with DP gets registered with all companies in which investor holds securities electronically eliminating the need to correspond with each of them separately. Transmission of securities is done by DP eliminating correspondence with companies. It enables holding investments in equity and debt instruments in a single account

Upcoming IPOs Investment is no more a daunting task

Initial Public Offering, or IPO, refers to the sale of a companys shares to public for the very first time. You can subscribe to the upcoming IPOs either by filling out an IPO Application form, or by applying online through various brokers websites. Demat9 enables you to stay abreast on upcoming IPOs in India , IPO News and all that is happening in the IPO market.

Advantage of Subscribing to Upcoming IPOs and FPOs

y

IPOs are moderately priced in order to attract high subscription

FPOs offer a perfect chance to invest in the company you always wanted to, but could not because of high share prices.

Advantage of Subscribing to Upcoming IPOs and FPOs

y y y

Get the latest information and news on upcoming IPOs Identify the hottest IPOs and FPOs Identify the hottest IPOs and FPOs

Demat Account Benefits

Demat account is must for investing in share market. Investors can buy or sell stocks with a demat account.
y

y y y y y y y y

Demat Account is safe and convenient way to hold securities. For example If you are holding your shares, bonds etc in physical form, there are chances of its theft and loss. However, In demat account you can preserve your investments safe and secure. You can transfer your securities immediately if you have a demat account. There are no chances of signature mismatch because most of the process of buying and selling dematerialized securities is electronic. There is no stamp duty on transfer of securities. Major Reduction in paperwork involved in transfer of securities. Reduction in transaction cost. Demat Account helps in easy settlement of the ownership title of securities, and provides easy receipt of public issue allotments. No odd lot problem, even one share can be sold thus there is advantage. Change in address recorded with DP gets registered with all companies in which investor holds securities.

Demat account popularly used short name for dematerialised account, is something you
would require in case you wish to online purchase and sale of securities such as stocks, mutual funds, gold etfs, etc. Although you have the option of receiving securities in physical or demat mode, it would be advisable for you to receive the dematerialized form of your security.

Demat account and its functioning resembles that of a bank account. Just the way a
savings bank account holds money, a demat account holds securities. It helps in holding securities electronically, or in other words, in dematerialized form. This feature helps in doing away with all the negative points of physical possession of securities. In addition, a periodic statement of transactions and holdings is also provided by the Depositary Participant (DP) that is similar to bank statement or passbook

How to Open Demat Account for Online Trading

Online trading means that you can trade during the trading hours from wherever you feel like. As we all know, you cannot carry out onlicenario, online trading is the norm of the day, given the convenience it provides. Demat account opening is very simple. All you are supposed to do is to approach a DP registered with SEBI, the regulator of Indian Stock Market. Demat services are presently being offered by all stock broking houses, as well as several financial and banking institutions. These stock broking firms also offer depository services and, thus, also known as depository participants. By definition, a depository participant is an intermediary between depositories, like NSDL and/or CDSL, and an investor. Demat account has to be opened while registering with a share broker or a sub-broker. There are just 4 simple steps for demat account opening:
y y y y y y y

Select & approach a certified DP (eg. ShareKhan, HDFC Securities, Unicon Securities, IIFL etc.) Fill up demat account opening form given by the DP. Attach xerox copies of proof of address and proof of identity along with the demat form.etc.) Produce your original PAN card during demat account opening.

Power of Demat A/c + Online Trading A/c

Opening a trading account along with opening demat account is highly recommended. Following are the things that you will be able to do with just few clicks once you have a demat and an online trading account. Nowadays, practically all trades have to be settled in demat form. Although the market regulator, SEBI, has allowed trades of up to 500 shares to be settled in physical form, nobody wants physical shares any more. So a demat account is a must for trading and investing in the Indian share market. Opening a demat account for trading in the Indian share market is as simple as opening a savings

bank account. You have to approach a Depository Participant (DP) to open a Demat account. Most banks and share brokers that offer share trading services are DPs.

Discover the power of Online trading + Demat account:

It is highly recommended that you also open an online trading account (if possible) when you open a Demat account. Here is a list of things that you can do with a few clicks once you have a Demat account and an online trading account linked to it.
y y y y y y

Purchase and sale of shares and stocks of any company on BSE and NSE Online investment in mutual funds online without any paper work Investment in Gold through Gold ETF's Online IPO (Initial Public Offer) subscription Online trading in Futures and Options Investment in Liquid BeEs