Introduction to a Demat Account
Demat Account is rapidly becoming one of the most crucial things for one to invest in the field of stock markets. It makes the entire procedure of share trading convenient and secure.
It is the acronym for Dematerialization Account. The charges for the account vary as per the volume held by the account with its assorted subscriptions followed by the terms and conditions.
In the year of 1996, India adopted the system of Demat accounting for depositing the shares in a digital format where they would be maintained in a systematic and secured manner which automatically eradicates the manual work to a very good extent.
This helped in increasing the sales and the market values as the procedures and especially transferring the shares became comparatively easier to the physical procedures.
What Is Depository Participant?
A demat account is generally defined as a type of account that is used by an investor to store financial securities and other holdings in a digital format.
There are only 2 administrations in India which administrate the working of demat account
- NSDL (National Securities Depository Limited)
- CDSL (Central Depository Services Limited)
The investor has to assign a DEPOSITORY PARTICIPANT which would act as a mediocre in between the user and the firm officials.
The investor can trade with as many as firms he/she wishes but at the condition that the transaction should take place with demat account number which would be linked with a bank and should enable all types of electronic devices.
The investor can utilize the demat account only after the user ID and password for the internet login and the transaction procedure has been set and processed.
Then after that, the user can not only trade but also can use the benefits like transferring the shares between accounts, be it internally or externally.
The transacted holdings are updated once the purchasing and payment procedure are processes and completed and they get updated directly into the demat account
When investing in equity shares includes a lengthy procedure comprising of large paperwork and the extent of getting duplicate shares so to keep the security intact a Demat account is required.
Online trading utilizes a Demat account in an electronic format and under this, the share certificates are converted into a digital format which increases its accessibility.
A Demat Account allows a customer to buy shares and deposit them securely which is similar to a bank account that holds the deposits and keeps a record of all the transactions.
Similarly, when a user buys or sells the shares its data reflects into the Demat account and holds various aspects of investment like shares, bonds, and government securities.
A Demat account can be opened irrespective of any prior shares previously bought or not and can even be maintained with a null balance.
Types of Demat Account
There are three types of Demat Account Let’s know about all three.
- Regular Demat Account
- Repatriable Demat Account
- Non-repatriable Demat Account
1. Regular Demat Account
A regular demat account is required for investors who live inside India. The account is perfect for individuals who manage equity shares alone.
The shares one purchases are put away in the digital design in the account. The shares one investments are put away in the digital design in the statement.
2. Repatriable Demat Account
This type of demat account is used by NRI people. Under which money can be transferred abroad. An NRE bank account is required for this type of demat account.
3. Non-repatriable Demat Account
This type of demat account is used by NRI people. In any case, you can’t move funds abroad. You must also have an NRO bank account connected to the demat account.
What is Stock Broker ?
Stockbrokers connect buyers and sellers of stocks, creating liquidity in the market. He deals with buying and selling orders submitted by investors.
They trade on behalf of individuals and companies, and for their services, They charge a flat fee or a commission, a percentage of the sale or purchase price.
The growth of discount brokers on the Internet has made it easier for the general public to invest. But stockbrokers provide service and expertise that brokers do not discount.
Stockbrokers undergo extensive training to learn about securities, and must also pass rigorous licensing exams, including series.
There are many types of brokers, and other licenses are required to trade specific securities such as commodities. They advise their customers to buy, sell or hold securities.
Good stockbrokers conduct thorough research on any security to which they make recommendations. And they will take the time to learn about the client’s position to make appropriate recommendations.
It is up to individual investors to determine that the shares and commissions they pay to the stockbroker, which accounts for their returns, are worth the services provided.
How to Open Demat Account
There are many stockbrokers in the market so that you can create a demat account by visiting their website. But here we are talking about Zerodha, how you can create a demat account on Zerodha.
In this, you will create an account in two ways. Online and Offline. Let us know in detail about both the processes.
Online Account Opening Process
- First, you have to go to this link
- Here, enter your mobile number for sign up and press the ‘continue’ option.
- After clicking on Continue, You have to enter your correct name, correct email id. OTP will be sent to your mobile number. You have to put it. And then click ‘Confirm.’
- After login, You need to enter your pan card number and Date of birth (DOB) then click on the ‘Continue’ option.
- Now comes the payment, let me tell you that its payment process is very safe, so for this, you do not need to take any tension.
You need to pay Rs 200 For Equity, and you have to pay Rs 100 for Commodity. To make the payment, you have the option of UPI or Net-banking/Card Payment. You can select any of these methods and pay.
- Next, you need to provide your bank details like Bank Account number, Branch MICR and IFSC Code and etc.
- Then, submit your personal details like Marital status,
Father’s name, Mother’s name, Annual Income, Occupation and etc.
- Let’s go to the next step. IPV or In-person-verification is the required rules set by the SEBI in opening an online Demat account, which the entirety of the investors must hold fast to.
Under this law, a depository member in close to home checks the entirety of the necessary reports under the set rules of SEBI.
You have to experience the required IPV (Person Verification) process over the webcam or cell phone according to your benefit. In-Person Verification (IPV) – In case your PAN is KRA confirmed, You don’t have to do IPV. For IPV, take your photo with OTP given on your screen with webcam and save.
- The next step is Aadhar based e-Sign here. You need to enter your Aadhar number and verify OTP.
- In this step, you have to upload your scanned copy of the documents like PAN Card, Bank Account Proof, your current signature, and Income Proof.
- Then, you have to press on the ‘e-Sign Equity’ option and go to the next step. Enter the ‘Security Code’ and click on ‘submit.’
- Then, you need to enter your Aadhaar number, tick the checkbox, and enter on the ‘Request OTP’ button. Here, enter the OTP number got on your mobile. With this, the e-Sign process for Equity is done.
- Once you have completed the application sign up process, Zerodha Sales Team validate the documentation and send your email with Demat Power of Attorney (POA) –
This is a mandatory requirement from SEBI where POA needs to be download, print, physical sign, and the courier to Zerodha office. This process will take a few hours as the sales team need to validate all your document.
Offline Account Opening Process
Due to being Digital India, many platforms have been online. But there are still some people in our country who have problems working on online platforms. If you want to open a demat account in Zerodha through offline, then follow this step by step.
If I am talking about charges, then for Trading & Demat Account Rs. 400. and for Trading, Demat & Commodity account Rs 600.
By visiting this official website, you have to download some forms and fill them. Like
- Application Form for Equity Segment
- Application Form for Commodity Segment
- Nomination Form: If you want to appoint a nominee to your demat account like your mother, your father, your brother, etc. Then, you need to fill this form.
Now talking about the document, You should have Xerox of your PAN Card, Address proof like Driving License (DL), Aadhar Card, Voter-Id,
Bank statement, Cancelled Cheque, Income proof & Passport size photographs. It would help if you crossed sign on all these docs as self-attest.
When all your document is filled and sign it, you can send the application forms to the Zerodha head office. You can see address in below:
#153/154 4th Cross Dollars Colony, Opp. Clarence Public School, J.P Nagar 4th Phase, Bangalore – 560078
3-in-1 Trading & Demat A/c
In 3-in-1 online trading account, you get instant online trading, demat, and bank account opening facility. In it, you can see the live share price, trade shares on NSE and BSE, futures and options, can trade in currencies.
Through a 3-in-1 online trading account, you can invest in secure mutual funds, IPOs, and life insurance.
Here I would like to share the names of some banks that offer 3-in-1 Trading & Demat Account.
Kotak is a 3-in1 account that investor calls and trades to invest in equities, mutual funds, and IPOs. In addition to this, it also facilitates margin against securities for intraday trades at a cost.
SBI provides services like equity investment, retail equity, derivatives, etc. under SBI Securities, SBI charges for opening an account would be around Rs 500. and maintenance charges would be around Rs 400 for an individual and Rs 800 for non-individuals.
Under the cash segment, the bank charges around 0.50% on the value of delivery turnover.
HDFC has a trading account next-generation trading and investment platform and advanced portfolio tracker, a research assist watchlist, which is a customized stock alert for easy and convenient trading.
The bank charges a customs duty of 0.50% or Rs.25 or 2.5% on the transaction value for both purchase and sale.
The securities transaction fee applies to 0.125%. The brokerage of banks is generally higher than in other firms.
Customers of ICICI Securities can invest in various transactions such as stocks, IPOs, mutual funds, derivatives, etc. through their 3 to 1 account.
You can buy and sell stocks on the online security platform with the traditional method of buying with 100% cash at the time of purchase.
Best & Cheapest Share Broker for beginners.
|Company||Demat Fee||Broker Type|
|Angel Broking||Rs.0 Free||Full Service|
|Edelweiss||Rs.0 Free||Full Service|
|Trade Smart||Rs.0 Free||Discount|
Power of Attorney (POA) is an authoritative document that empowers one individual to represent someone else (principal).
A power of attorney is now and again utilized in case of a principal’s disease or incapacity, or when the principal can’t be available to sign fundamental authoritative records for financial transactions.
The operator can have a full lawful position or restricted power to settle on legitimate choices about the principal’s property, finances, or clinical consideration.
A power of attorney can expire because of a few reasons. For example, when the principal dies, the principal drops it, the court refutes it, the principal divorces his life partner who can’t be an operator is.
Regular POAs are missed when the manufacturer is disabled. However, the “tough POA” remains with the goal that the specialist can deal with the manufacturer’s issues, and the “springing POA” applies just if the manufacturer impairs the POA. A clinical or medicinal services POA empowers an operator to settle on clinical choices in the interest of a weakened individual.
Zerodha Kite Demat First time login Process
Here I am telling the process of login to Zerodha Demat account. First of all, let me tell you that for this you will have to create a Demat account first. If you have created an account, you can log in to it in two ways.
First, You can log in through kite and second Zerodha console. As an example, let’s log in with kite.
- Go to this link’ As soon as you click on the link you will see a box like this.
- You need to enter your ‘User ID’ and ‘Password’ What you got from Zerodha. Then click on the ‘Login’ option.
- After that, You have to put the ‘PIN’ and then press on the ‘Continue’ option
- Then, Dashboard appears on the computer screen, because you logged in first time here, you can add fund and then you can start your trading.
Free Demat account List
Here I am sharing the list of free demat account using which you can save some money.
|Broker||Demat Open||Demat Account Opening Fee|
|Upstox||Visit Broker Website||Rs 0.00 (Free)|
|5paisa||Visit Broker Website||Rs 0.00 (Free)|
|Stoxkart||Visit Broker Website||Rs 0.00 (Free)|
|Angel Broking||Visit Broker Website||Rs 0.00 (Free)|
|Fyers||Visit Broker Website||Rs 0.00 (Free)|
|Edelweiss Broking||Visit Broker Website||Rs 0.00 (Free)|
5Paisa is one of the online platforms utilized for stock trading and it is also a very convenient option for trading and investing.
One of the very notable things about this firm is that it doesn’t charge a brokerage fee and on the other hand the flat fee is also very less.
It is a trustable and successfully established brand, with good customer support.
Opening a Demat account in this firm can also be done paperless. All the user needs is an identity proof and the bank account details.
The prominent features of this firm are:
- A brokerage charge of 10Rs.
- There are brokerage charges for some specific facilities.
- It charges opening fees around Rs. 650 with also a fee for maintaining the account and securing the account.
- The investor can also be given some relief on the charges.
- The firms give the user different types of platforms for different types of trading where one is for minimal trading and the other is for extensive trading.
Upstox has been upgrading the brokerage platform on the online field in India. It has upcoming as one of the largest broker firms that provide a discount in India from the day it has come into the market. It also handles a high volume of stocks on day to day basis.
One of the most prevailing issues that the new investors come across is that they are not sure about where to start.
So this is the reason why the new investors should start with a renowned firm such as Upstox because not only it a very easy to use the platform but is also very convenient.
Some very prominent features of Upstox are:
- The brokerage rate for account is 0.01% or Rs. 20 is decided on the basis of market rates.
- Kite 3.0 is an advanced and a very convenient trading platform
- It also offers free delivery services on equity
- The brokerage fee comparatively is very low
- It charges a small fee of only Rs. 300 annually
- It offers a great amount of support and also extra features.
Angel Broking is around for a long time since it was founded in 1987. It has achieved and has become one of the most famous brokers as it is presently handling over 1 million users.
They have a large number of outlets and branches in the whole country
Angel Broking is an important member of the organization. They provide an online platform for trading that are comparatively easy to apply and regularly offers various services.
Some of the key features are:
- The user can get a non-costing Demat account for lifetime upon signing up
- The user is allowed to start trading almost immediately after opening the account
- The firm’s website offers numerous resources and also advises about investing
- The brokerage fees vary from other firms, but it is generally low
If you are interested in the share market or want to do some earnings by investing, then it is important for you to know this. Something special about the Demat and trading account difference that I am sharing.
|Demat Account||Trading Account|
|Through demat account, you can buy shares and securities from the market are stored.||The trading account is used to buy and sell securities, through which your demat account is debited and sold in the market.|
|Unlike a trading account that acts like a current bank account, a demat account acts like a savings account.||A trading account connects your demat and your bank account.|
|It works in a way where you can also convert your electronic format securities into physical form. Demat accounts permits to investors for placing their financial instruments in an electronic format.||It works by removing from your demat account and selling your shares in the market.|
Let me explain you with an example. You purchase shares of ABC organization for Rs. 1000 at Rs. 100 for each stock.
As the bank account is connected with the trading account, Rs. 1000 gets debited from your trading account when you purchase the shares, and a similar sum is credited to your trading account when you sell these shares.
The shares you buy get credited to your demat account, and it gets debited from the demat account when you sell the shares.
The trading account goes about as a middle person between financial balance and demat account. At the point when you open a demat account on the web, at the same time, your trading account also gets opened.
You get a client id and password using which you can begin investing through your trading account. Expectation, you got the point.
Demat account holds your shares in the electronic organization while doing the purchase or sell exchanges. You need a trading account.
Transferring shares between accounts
There are two ways you can transfer shares. First Offline and second Online. I am going to explain both ways here.
Offline Process for Transferring Shares
There are two depositories in India, one is Central Depository Services Limited (CDSL) and the other is National Securities Depository Limited (NSDL). Those authorized to hold shares of account holders.
these are the means that should be followed:
- First, you need to collect the names of the shares to be transferred.
- Then, the ISIN number additionally must be entered, with the ISIN or International Securities Identification Number being the 12-digit code required to recognize securities,
for example, equities, funds, bonds, debt, stocks and more. It is crucial to enter the ISIN number accurately as the transaction will be handled on its premises.
- In the next step, you need to record Target Client ID. It is a 16-character code that contains the client’s ID and the DP’s ID.
- If the transfer mode is Intra-Depository, then the column has to be selected titled Off-Market Transfer. But if the transfer mode is Inter-Depository, then the Inter-Depository column will be selected here.
- The filled and signed DIS slip has to be submitted to the existing broker of the account holder.
- And last, you must collect the acknowledgment receipt for the DIS slip from the broker.
It will take between 3-5 business days for the current broker to transfer the necessary shares from the old Demat account and for the new broker to get the shares in the new account.
Online Process for Transferring Shares
In online process, you can use the CDSL website and easily transfer your shares.
- First, go to the CDSL website and then, you need to register.
- And then, Fill all required details.
- Then, you have to select the “Print Form”. After that, it will be transferred to the account holder’s DP.
- After completed it, a password will be sent to the email ID of the account holder.
- And then, the Account holder can log in with the given password and also transfer the shares as per your requirement.
No.1 BEST BROKER OF INDIA?
If you are interested in investing in the stock market or are thinking now to invest, then it is good. But before that, you need to know which stockbroker is right for you,
so that you can invest safely. Here I would like to share some No. 1 stockbroker names.
|Broking House||Overall Rating|
|Zerodha||9.14 out of 10|
|5Paisa||8.38 out of 10|
|Upstox||8.44 out of 10|
|Angel Broking||8.46 out of 10|
|Edelweiss||8.42 out of 10|
How to Close Demat account
Here too, I am giving an example of Zerodha. If you do not use a demat account for six months, then your account will be closed in this situation.
And then, this account can be activated by calling Zerodha and talking to their representatives. You have two ways to close the account online and offline.
You must have to check before sending the request to close the demat account.
- Your account should not have a debit balance.
- Your account should not have a share.
- The presence of all the holders is mandatory for signing the closure request form.
In the online process, you have to sign in your account and raise a ticket for the closing demat account.
Talking about offline, you must first download the account closure application form from Zerodha website and fill it properly. You can see in the image below.
This will be the form in some way. After filling the form, send the forms to Zerodha head office in Bangalore –
#153/154 4th Cross Dollars Colony, Opp. Clarence Public School, J.P Nagar 4th Phase, Bangalore – 560078
Keep in mind that this process may take about 5 to 7 working days. When the process is complete, you will get confirmation on your register email.
Required Document for Demat Opening
The investor might distinguish a Demat account with a bank account that stores shares rather than cash. The opening process of a Demat account and the mandatory documents needed are similar across all the organizations.
Initially submitting any type document has an expiry date so the user should ensure that the document is valid on the date of submission.
|Document Type||Document Details|
|Address Proof||You need to submit one self-attested copy of any documents for address proof like Aadhar card, Voter ID, Bank statement, Passport, and DL.|
|Income Proof||It is necessary to provide income proof. You have to send one self-attested copy of current salary slip, Form 16, ITR, and six-month bank statement.|
|Photographs||Digital and Physical photo is required on the KYC form|
|Pan Card||You must have Pan Card|
|Aadhar Card||Digital Copy of Aadhar Card as well as Aadhar link with your primary phone number to get OTP.|
|Signature||You have to submit your current signature.|
The documents that the user might need to open a Demat Account are:
1. Income proof of User
Some rather mandatory documents needed are listed below:
- A photocopy of the Income Tax Return slip that is submitted to the IT Department when the tax filing procedure is going on.
- A Chartered accountant authenticated document i.e. The economical worth of the customer.
- Salary Slips of the present month or a Form 16.
- The demat account owning certificate
- A Current statement of the bank account containing the history of income in the past 6 months.
- Any documents that could prove the ownership of property by self-declaration.
2. Identity proof of user
The user can submit these as an identity proof:
- PAN card that has a valid photograph.
- Aadhaar card or Voter ID card or driving license or a Passport.
- The Identity card that has the applicant’s photo and is issued by the Central or State Government.
3. Address proof of user
Address proof can be submitted as:
- Passport of the user or Voting Card, Ration Card,
- Utility bills like the landline telephone bill or the current electricity/gas bills of the latest month.
- Bank Passbook latest transaction.
- The legal document certified by the court justifying the new address self-declaration.
- The address proving the existence which is authorized by the bank and the authorities of the bank.
- Centrally governed and proved identity proof and the address proof of the user.
- Address proof provided in the name of spouse
Opening process for Bank Demat A/c
1. SBI (State Bank of India)
Users should follow this procedure!
Visit www.sbismart.com site for signing up for the account:
The user has to mandatorily submit the scanned copies of the documents that are listed below:
- PAN CARD details
- Aadhaar Card details
- Passport size photos
- Existing SBI saving account passbook details
If the user knows the account number and the IFSC code, then the user does not need to save the scanned copy of the details related to the bank account. The investor is entitled to fill-up the form for opening an account but anyways it is always preferred keeping up a copy for safe side.
The user can open an account in many ways but if a user wants to open an account with SBI then he/she can open with the following methods:
- Reaching out to the nearest branch to them and physically filling out the account opening form.
- The online procedure where the user can open it directly from their home by virtually filling out the form online.
- The customer care services where the user can ask them for assistance and can give an application for the same.
Usually the users tend to think that physically filling out the form is a better option but if the branch office is at a long distance from the home then it h-gets a bit inconvenient but if the office at a small distance from home then it is the better option for the users. Further, the user gets all the doubts cleared and completed regarding the brokerage charges, the annual maintenance charge etc from the representatives present at the bank.
This method is particularly targeted to the youth-oriented people as they tend to keep their work online they can easily fill-up the form online and also upload their documents then and there.
This method is one of the most preferred methods as it easier and more convenient where the user has to follow some procedures and it is done and the procedures are:
- Opening the official website of the firm and filling the form there.
- Entering all the necessary details that are mandatory for the account to be opened.
- The branch executives or the people from the firm contact the user and then tell the process of the opening the account.
2. HDFC Demat Account Procedures
Step 1: The user can open an account by visiting the website of the firm and search for the demat account option and on visiting all the necessary details are available for the user to see. If the user is having an account initially associated with the firm then the user has to sign-up for the process of opening the demat account.
Step 2: When the user visits the demat account section then there is a form available for the application which the user has to fill up with the necessary details that are highlighted. When the process is completed, the officials from the firm contact directly with the user when the application gets submitted.
Step 3: When the account is opened the user can see physically with the login ID the status about the application form being successful and the interest of the user in the firm. After the duration of time the firm contacts the user about the necessary details related to the account.
The facility Provide by Bank In Demat account
Transfer of Shares for User
It is utilized to transfer the shares owned by an investor. It is also carried out by utilizing a Delivery Instruction Slip to conduct the share trading. The transactions can go smoothly if the details and the documents that are mandatory is provided within the given time.
Loan Facility Services
The investor can get various loans if he/she wishes on the basis of securities held in their account. The user can pledge for these securities as a deposit for securing a loan.
Dematerialization & Re-materialization of Shares
Transferring the shares into different formats from time to time is an easy task if the investor has a Demat account.
The user can even give necessary instructions to the assorted depository participant for dematerialization and also to get the owned physical form share certificates into digital form.
If the investor wishes to change their shares to the physical format from the digitized format, he/she can do it very easily.
Multiple Access Options
As the shares are traded online, they are vulnerable to be able to be used through various media platforms.
The facilities of the demat account can be utilized by the user through any electronic device at any given point of time.
Legal Actions are Taken
When a user buys the shares, he/she is allowed to use the benefits that come complimentary with the bank.
So, if the firm is giving any sort of extra facilities, the shore holders are automatically applicable for utilizing them.
Additionally, when the corporate actions that are related to equity shares, they get updated in the investor’s Demat Accounts.
Freezing the Active Demat Accounts
The customers owning the demat accounts are permitted to stop their accounts as per their wish for a certain period.
It is also carried out to avoid any type of unpredicted transaction into the user’s Demat Account. Even to end the account or even freeze it the customer must have a specific number of shares in it.
Speed E-Facilities for User
The (NSDL) extends the facilities for the users holding the Demat account. Rather than physically submitting the Depository Participant can even receive the slip digitally through the online process.
It is carried out to make the process faster, easier and more convenient.
Types of fees or charges
The firms charge for Demat accounts are collected by DP for offering numerous services.
- Charges for Account Opening
- Charges for Account Maintenance
- Charges for Debit Transaction
- Charges for offline Debit Transaction
- Charges for Pledge Creation
- Charges for Pledge Invocation
- Charges for Dematerialization
- Charges for Re-materialization
- Fees for Modification
- Charges for Delivery Instructions
- Charges for Account Statement
1. Charges for Account Opening
The brokers charge an assorted fee when an investor opens a Demat account with their associated firm. Such fees are non-refundable which are charged when the account is opened.
The customers can access the non-costing opening procedures. They provide the service of opening all 3 accounts in the same which means savings account, demat account and trading account all in the same where the charges are taken only for the demat account.
Brokers like Zerodha charge ₹100 demat account opening fee.
2. Charges for Account Maintenance
A yearly fee is charged to the user by the firm for the maintenance of the account which is around 300 to 100 Rs. And that is charged on the basis of the shares hold by the investor.
The major fees that are charged are on the basis listed below:
- Fixed Yearly AMC: The firm charges an annual fee which is mandatory which is more preferable than the other types and in some cases, the firm relieves the customers from the first year annual fee as a discount.
- Zero AMC Demat Account: Here the customers do not charge any yearly fees but certain brokers do take a deposit of a certain amount whereas the other charge only on time.
Lifetime Free Demat Account (Demat Account without AMC)
3. Charges for Debit Transaction
When an investor decides to sell his/her shares then this decodes that the shares that are being sold will be taken from the seller’s account and sent into the buyer’s account.
The investor has to pay a fee of some certain amount to carry on with the transactions and the trading if shares from one to another. The fees of the broker are variant where some brokers take their fees on the basis of the transaction values whereas some keep the fees same for all transactions.
4. Charges for Off-Market Debit Transactions:
This type of transaction means the trading of shares on the physical form on the condition that is pre-decided with their specified prices. For such transactions exchanging the stocks and the corporation, details are no included?
The physical transaction of shares or as per say off-market transactions can be done through the following possibilities:
- Changing to ownership of the stocks to some other party
- Giving away the shares to someone in the name of presents
- When the shares are transferred from one demat account to other
- Changing the client and seller’s security issues.
- Security sector should comprise the transaction details.
The user will have to pay a fee of some amount for every transaction made.
5. Fees for Pledge Creation
For the users ownership of shares, a pledge is created where the user continues to hold the ownership of the shares even if the user is unable to pay the dues. If it is not then the default case is assumed as it is utilized the repay as due for the charges.
The broker also gets a fee for every transaction a user makes in the pledge.
6. Fees for Pledge Invocation
By default when the user cannot pay the dues because of any certain reason then as per the rules and regulations the pledgee is permitted to give an invocation slip for the pledge. And also in the cases where the pledge is invoked then the stocks get transferred directly to the pledgee.
7. Charges of Dematerialization
Dematerialization is processes through which an investor can convert securities paper certificates in electronic form and store them in their accounts. Brokers charge fees for changing and converting them into other forms.
8. Charges for Rematerialization
To undo the process of dematerialization the phenomenon rematerialization is used. The stocks that are in the dematerialization form can also be transferred to another physical format with this process
The user has to get approval of the depository participant initially selected as a nominee and in such cases the brokers also tend to charge fees for certain reasons.
9. Fees for Modification in Address, Email, Mobile and Bank Updation
If there is any type of changes in the documents that are provided initially or any type of details provided by the user then it is to be informed to the depository participant with the detailed information about what is to be changed to what updated details with the changed information proof.
10. Charges for Delivery Instruction Slip
This is a type of form that authorizes the depository participant to withdraw the shares from the account and side by side transferring those shares to some another account as per mentioned in the regulation list
And if in a case where the form gets misplaced or gets lost then the user has to inform the depository participant at the earliest and give a written application of cancellation of the issue and reassuring per say.
11. Consolidated Account Statement
These types of statements provide a systematic and modified view for the investors to look at and have a greater point of view for the demat account and the information that is related to it. This makes the investors track the amount of transactions done and track the success and profit ration from the finances of the company from the market.
Leading Brokers of India
The leading brokers in India with the cheapest cost and that charge the minimum fees are:
Trade-Bulls:- It was incorporated in the year of 2009. It heads the list for the cheapest broker firms of India by offering the best service with the best trading platform for the investors and to top it all the maximum brokerage is of Rs. 20 per trade and it also provides the investors with free delivery trading. It is rated with a full 4.5 by the customer and from their reviews.
5paisa:-Incorporated in the year of 2016, comes second to ZERODHA in the list providing a great deal of customer service with flat fee of Rs. 10 per brokerage plan.
UPSTOX:-It is a Mumbai based discount broker firm that provides brokerage at a minimum of RS. 20 per trade and also free trading on equity delivery trades.
SAMCO:-SAMCO is also a Mumbai based broker firm which offers trade in the maximum of Rs. 20 per order that is executed and it is 100% online discount broker which operates from any one office location.
FYERS:-It is a Bangalore based trading hub. Its FYER’S SECURITIES is one of fastest-growing discount broker companies that offer brokerage plans of maximum Rs. 20 per trade plan and also provides free delivery trading. It is the main 2 pillars of a concept are High Margin and Best Customer Support to have success in this competitive market.
Trade-Smart:-It provides the best trading platform and offers at Rs.15 per trade.
Edelweiss:-It provides one of the best trading platforms at Rs. 10 per trade.
SAS Online:-It is a Delhi based broker firm that gives brokerage at Rs. 9 per trade and also provides monthly plans for volunteer traders.
Pro-stocks:-It is a Mumbai based discount brokerage firm that offers brokerage at RS. 15 per trade and monthly unlimited trading in Rs. 899 and Yearly trading at Rs. 8999.
Trade-plus:-It offers lowest refundable trading plans starting at Rs. 99 per month
The only thing anyone can conclude from the above texts is that a demat account is the most secure and reliable way to trade in share marketing where the user can not only trade but also keep a track of surroundings related to share market.
Which would be the best bank where for a user to open a Demat account?
There are several banks in the competition for the title of the best broker and they are, ICICI, HDFC, SBI, KOTAK, AXIS etc.
What is the working of a Demat Account?
Demat account is a type of a bank account where all the data of the transactions or any type of activity is carried out.
It is very helpful in terms of security issues and also saves a lot of time and paperwork and users can even make an account online saving a lot of time.
Is it possible for an investor to have multiple accounts?
Yes, a user can have two different demat simultaneously and actively at that part with the only condition to be followed is that the accounts should not be comprised of the same broker.
If a user wants to close his/her demat account, can he close it?
The answer is yes, a Demat account can be closed, the user just has to visit the branch office and have to fill up the respective forms and details for the same and the account is then closed.
What is the use of a demat account?
The use of a demat account that assumes you need to buy shares, then you can easily purchase stocks and securities from the market through this account, and then you can store.
Is demat account free?
It is free. If you want to open a demat account, then there will be no charge for it. But there is an annual maintenance charge of Rs. 450/- and a onetime cost of Rs. 50/- for POA.
Which is the best bank for opening a demat account?
By the way, there are many banks in which you can open a demat account, but I am sharing the name of some of the best banks. Like SBI Bank, Kotak Mahindra Bank, HDFC Bank, ICICI Bank, and more.
Can we buy shares without a demat account?
If you want to buy shares, you must have a demat account. You cannot purchase shares without a demat account and can’t invest money in the stock. There is a lot of natural processes to open a demat account.
Can we withdraw money from the demat account?
A demat account only stores your shares electronically, which is why you cannot withdraw your funds from a demat account. If you want to withdraw the fund, it must be done from the trading account.
As of now which is the cheapest broker?
Till date ZERODHA has been ruling the title of the cheapest share broker in India and followed by it is the WISDOM CAPITAL, RKSV SECURITY, etc.
Stockquantum was founded by Dharmendra Mukati in 2018. I am a Trader and Investor in the last 10 years.
I am writing here about stock broker review, broker comparison, IPO investment, Crypto currencies, technical analysis, fundamental analysis, sub brokership, mutual fund, personal finance, and our experiences.