Technology has made things much more appropriate and advantageous for us. Moreover, things have changed in the stock market industry as well.
HDFC is one of the leading banks in India that offers Demat account services to their customer.
So, if you want to take delivery of shares, then opening a Demat account is quite mandatory. Let us briefly understand the various features that HDFC security Demat account offers to the customers.
Let us understand briefly what is HDFC Demat account?
We all have come across the term Demat account. But if you are still under confusion as to what a Demat account is, let us help you understand.
Demat account stands for the dematerialization account. A Demat account lets you share certificates and various other securities in an electronic form.
In simpler words opening a Demat account helps you get rid of all that paperwork and let you hold your shares and securities in an electronic format.
This makes the entire process incredibly convenient and comfortable for the customers and provides a smooth way to hold shares and securities.
HDFC Demat account also provides a range of investments that includes mutual funds, equity, and bonds.
It provides two types of Demat account:
- 2 in 1 Account – This includes Demat plus trading. Here you get the facility to combine them both.
- 3 in 1 Account – This includes Demat, saving, and trading.
Benefits of HDFC Demat account:
Opening the HDFC Demat account will provide you an easy and accessible way to view all your investments and statements at one go.
Reduces the risk of theft:
With the Demat account, all your securities and shares are saved in an electronic form. This will prevent loss, theft, and wear and tear that your documents in physical form will be subjected to.
So, if you don’t want to go through the risk when you are dealing with physical shares, then it is best to go for Demat account. Opting for a Demat account gives you a safer and better option.
Easy access to loans:
HDFC Securities Demat account helps you with loan facilities. You can get a loan against the securities if you are a part of the Demat account.
Dealing with things related to physical securities means that you will have to go through and deal with lots of things. That includes stamp duty, handling charges, and various other additional costs.
But once you go for Demat account, all these are reduced and eliminated. Just because of the more straightforward reason that it is stored in a dematerialized form.
Sometimes, it gets better, painful, and annoying to maintain the record in the physical state. But to make it beneficial and conducive, the Demat account will let you keep the documents with the help of a single account.
Easy access to a wide range of options:
Opting for the HDFC Securities Demat account means that you will get access to your account through various modes of devices.
It doesn’t matter which part of the world you are in; you can approach your account through computers, laptops, smartphones, and various other electronic devices.
It reduces and lessens time:
HDFC Securities Demat account will make the entire process of buying and selling shares instant and quick.
Moreover, the process of transaction consumes lots of time, but it can be made smooth and inexpensive with the help of the HDFC Demat account.
Easy transfer of shares and securities:
Demat account will help you transfer shares easily and quickly without any hassle.
Makes the entire process convenient and flexible:
With HDFC Securities Demat account, you will enjoy quite a few numbers of services through a single platform.
With HDFC Demat account, you stay up to date:
A depository participant will update you regularly.
Eliminates terrible deliveries.
HDFC Demat account lets you access from anywhere.
Documents required for opening HDFC Demat account:
To submit the application for opening the HDFC Demat account, a person needs to provide the following documents.
The lists of documents that are required are:
- Pan Card. This is an essential document that is needed at the time of opening the account.
- Copy of Aadhar Card, Passport, or Voter ID Card.
- Your address proof which the following documents – Passport, Voter ID, Driving license, telephone bills, electricity bills, passbook, or your bank statement account.
- Your income proof, which includes the following necessary documents – ITR copy, salary slip, canceled cheque, and bank account statement for the last six months.
With all these above documents, you can easily open the HDFC Securities Demat account.
How to open HDFC Demat account – Step by Step
HDFC Securities Demat account is easy and convenient, and the entire process is extremely smooth.
Follow these easy steps if you want to open HDFC Demat account:
- You need to submit a filled-in form and KYC (know your customer) form.
- With this above document, a person needs to attach the following copies:
- Pan Card
- Address proof
- Identity proof
- Passport sized colored photograph
- For the complete verification process it is advisable to carry the originals along with the photocopies of the documents. You also need to carry a canceled cheque along with you.
- Next, you need to sign in the agreement that includes all the rules and regulations that are combined with a Demat account. Do not forget to read the rules and regulations thoroughly to clear all the doubts.
- Do not even hesitate to ask the official in case of any confusion.
- After submitting the documents, it will be signed by an authorized person, and a copy of it will be handed to you.
- Once your account is opened, you will receive a unique customer ID from the Depository participant. This individual ID will help you access your Demat account.
- In the end, you will receive instruction slip by Depository Participant, which you can utilize for transfer and purchase.
After submitting all the required documents, the representatives will get in touch with the customer for completing the remaining formalities.
In case you are facing any problems, then you can reach out to the executive who will be ready to help you with your queries.
Additional features of HDFC Demat account:
- HDFC provides zero charges for the Demat account.
- No stamp duty is required.
- Investors can easily purchase and reclaim securities and other investments.
- HDFC Demat security account lets to save equity, funds and also exchange traded funds.
HDFC Demat account opening charges
To activate the HDFC security Demat account, you need to pay account opening charges and annual maintenance charges.
|Opening Charges for Trading Account||Rs.999|
|Opening Charges for DEMAT Account||NIL|
|AMC For Trading Account||NIL|
|AMC For DEMAT Account||Rs.750|
Close The HDFC Securities Demat
To close the account, you need to do the following things:
- To close the Demat accounts, give a visit to the nearest HDFC Securities office and fill in the required form.
- Once you submit the filled-in form, you will receive a confirmation SMS alert on your registered mobile number.
- You can even download the account closing form from the website.
- Fill in all the required information and details, which include Depository Participant ID, details such as name and address, and your reason for closing the account.
- Submit the form to your nearest branch office.
HDFC Demat Account Frequently asked Questions (FAQs)
1. Does HDFC security Demat account charge any fee for closing the account?
No, the HDFC security Demat account doesn’t charge any closure fee from the customer.
2. What to do if the Demat account has any negative balance?
If in case there is any negative balance in the account, then it must be settled and cleared before you submit the request for closing the account.
3. How much time HDFC Demat account takes for closing the account?
It takes around 5-7 working days to close the account after the requests have been submitted.
4. What are the details that your Demat service provider should give you?
You should get the following details from your Demat service provider:
- Depository Participant ID
- Demat account number
- POA (Power of attorney) number
5. Is there any annual maintenance charge for HDFC securities?
Yes, HDFC security Demat account charge 0 annual maintenance charge if you have a trading account and Rs.750 if you have a Demat account.
6. Why is Annual maintenance charged?
Annual maintenance is charged in order to maintain the accounts.
7. Does HDFC Demat account provide freezing account features?
Yes, HDFC security provides the benefit of freezing the account for a certain period, if need be.
8. What are the three types of Demat account that HDFC provides?
There are primarily three types of Demat account:
- Regular Demat account
- Repatriable Demat account
- Non-Repatriable Demat account
9. What to do if I need to change the address in the Demat account?
If at any time you need to change the address in the Demat account, then the following documents are required to be submitted:
- Your identity proof needs to be self-attested.
- A copy of your new address that needs to be self-attested.
- New address proof
Once your new address is updated you will receive the confirmation letter will be sent to both new and old address.
10. What to do in case of a change of signature?
Again if you want to change your signature of the holder following documents needs to be submitted:
- The person whose name needs to change needs to visit the nearest branch to provide the new signature.
- A New signature then gets attested by the banker.
- You need to provide the self-attested identity proof of the account holder whose signature needs to be changed.
- You also need to provide the reason for the change of signature. This needs to be submitted to the branch.
11. What are the various exciting features that the HDFC Securities Demat account provides?
HDFC Demat account comes with various exciting features:
- Live tracking feature
- Option to buy and sell
- Advanced tracking option
12. What are the eligibility criteria for opening the HDFC Securities Demat account?
The vital point to note here is that there is no age restriction when it comes to opening a Demat account.
Both adults and the minor can easily invest in the stock. Anyone irrespective of his or her age can open HDFC Demat account.
13. What procedure should I follow if I want to open the Demat account in the name of a minor?
If you want to open HDFC Demat account in the name of minor then either his or her parents or the guardians of the minor will have to submit their respective documents.
14. How do I check HDFC Securities Demat account details?
As you open the HDFC net banking website, then you need to click on the Demat tab. You will be able to view all the transaction details from the date ranging from 4 years to 18 months. You can even download the details in excel or pdf format.
15. Who are all eligible to open HDFC Securities Demat account?
If you are an Indian citizen or an NRI, then you are eligible to open HDFC Demat account.
16. Do I need to wait after my account gets activated?
No, you can start trading once your account is activated.
17. Is it necessary to have two Demat accounts?
No, it is not mandatory. But there is no harm if you want to have multiple Demat accounts. But remember you cannot open two Demat accounts from one same bank.
18. Is it easy to transfer shares to a new Demat account?
Yes, it is possible. You can quickly transfer your shares from one Demat account to another without any hassle.
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