Best Brokers for Demat Account in India-2018
Demat Account is like a safe where you can hold your shares, mutual Funds, debentures and bonds in an electronic form. A Demat Account holds all the investments an individual makes in shares, government securities, exchange traded funds, bonds and mutual funds in one place. An investor cannot directly go to the National Depositories (NSDL and CDSL) and open the demat account. You have to go through the channel of depository Participant or DP. Demat account can be opened with broker as the brokers serves as depository Participant for the national depositories. So your broker serves in 2-in-1 way by not only providing services related to transaction in securities but also holding securities as DP. Most of the Indian Share Brokers offer DP services along with trading account. Many brokers offer free Demat Account opening but apply annual Demat maintenance charges (Demat AMC) which lies between 300 to 700 Rs yearly. A person can open more than one demat account but more demat accounts attract more AMC charges. So it is in your favor to consolidate all your holdings in one Demat Account.
Now since demat account is required when we want to hold the securities. So you only need demat account for trading in equity delivery. If you are a F&O and Intraday trader then you don't need a demat account.
Explaination Of Demat Charges:
- Demat Account Opening Fee: This is one time fee that you need to pay to open an account.
- Demat Account Annual Maintenance Charges (AMC): It is a yearly fee that is automatically deducted from your account every year. The fee is charged to maintain your demat account.
- Transaction Charges: Transaction charges are only levy while selling or outgoing of shares from your demat account. For incoming or buying of shares, there is no transaction charges applied.
It is usually charged as:
- ₹8 + ₹5.50 + service tax for every market debit transaction.
- 0.02% or ₹20 whichever is higher for off market debit transactions.
- Dematerialization Charges: Charges to pay if you like to change all your holding from paper form to electronic form. It can be charged per certificate or one amount for one company's share. You have to request for the dematerialization of certificates by filling up a dematerialization Request Form (DRF), which is available with your broker (DP) and submitting the same along with the physical certificates.
- Rematerialization Charges: These are charges incurred for conversion of electronic holding to physical lot. It can be charged per certificate or per set up. It can be done by submitting the Remat Request Form (RRF). The RRF must be signed by all holders, verified by the DP and then submitted to the Company or Registrar.
- Pledge Charges: The charges to pay if you like to pledge your securities to take a loan against the financial securities like share / bonds in your DP account.
- Unpledge Charges: The charges to unpledge your securities.
- Pledge Charges Invocation: These are charges incurred for creating new holdings after closer of pledge.
Read the ProStocks Review
ProStocks offers 2-in-1 account, which includes a trading account and a demat account for seamless transactions between the two. ProStocks is DP with CDSL. ProStocks is the cheapest Demat service provider in India as it offer zero Demat Account opening fee and no Demat annual maintenance charges (AMC). You only need to pay a one time refundable deposit of Rs 1000.
ProStocks Account Opening charges: Zero
ProStocks Demat Account Maintenace charges: Zero
Special Offer:Free Life time Demat AMC & Trading AMC for limited time.Sign up now
Read the Angel Broking Review
Angel broking is registered as a Depository Participant with CDSL. You can avail Demat services with Angel to get fast and paper less transaction.
Angel Broking Demat Account Opening charges: Zero
Angel Broking Demat Account Maintenance charges (AMC): Zero
Special Offer:Free Life time Demat AMC & *Trading AMC and Flat 20% discount on for online transaction Sign up now
Read the Sharekhan Review
Sharekhan is the full service broker offering 2-in-1 account that includes trading and Demat Account under one roof. Sharekhan is registered as a Depository Participant with CDSL.
Sharekhan Demat Account Opening Charges : Zero
Sharekhan Demat Account Maintenance charges AMC: Rs 400 yearly.ero
Read the Zerodha Review
Zerodha, the biggest discount broker in India offers demat account along with the trading account. Zerodha is depository participant (DP) with Central Depository Services Limited (CDSL).
Zerodha Demat Account Opening Charges: Rs 100
Zerodha Demat Account Maintenance charges: Rs 300 per year
Special Offer:100 Rs off on account opening fee for limited time. Sign up now
How to open a Demat Account?
Here are the steps to open a demat account:
- Select your DP: DPs can be banks, brokers or financial service providers. Select your DP, preferably the stock broker with which you have a trading account, so all your trading transactions will be seamless.
- Fill out and submit account opening form, KYC form and Documents: Fill out and submit the form given to you for opening an account, the KYC form, passport size photographs, your PAN card (Permanent Account Number), and other photocopied documents. The documents required to open a demat account include a proof of address and proof of identity. Also you need to give a name of a person as your nominee.
- Proof of Identity Documents:
- Voter’s identity card
- Income tax returns
- Bank attestation
- Electricity bill
- Driving license
- PAN card
- Identity card issued by central or state govt., professional bodies like the Bar Council, Institute of Chartered Accountants of India, and Institute of Cost Accountants of India or by public sector undertakings, regulatory or scheduled authorities, public financial institutions, university-affiliated colleges, or scheduled commercial banks.
- Proof of Address Documents:
- Ration card
- Leave and license agreement
- Verified copies of electricity bill
- Bank statement or passbook
- Driving License
- Residential telephone bill
- In-Person Verification (IPV): In-person verification (IPV) is conducted by a person from your DP’s firm to find out the existence of the customer by meeting in-person and verifying identity and address proof with original and to ensure that the details provided by you in the form are authentic. This can be done over your pc by video meeting/conferencing with the help of internet and web camera. Before the IPV starts, make sure you have your address proof and PAN card ready to show.
- Get Beneficiary Owner Identity (BOID): Once your application has been processed and your DP has facilitated the opening of your account, they will give you a Beneficiary Owner Identity (BOID) – a unique account number – that you can use during future transactions and to access your account.
How can I close my Demat Account with my previous broker and transfer my shares to new broker?
For some reason if you want to switch your demat account from your previous broker to the new broker, say from HDFC Securities to ProStocks, you need to fill Close and Transfer Instruction Slip or Delivery Instruction Slip (DIS) at your previous demat service provider and provide your new demat account number. Also you have to get the Client Master list from your new broker and providing the same to your old broker. They will transfer the equity in off-market transactions at no additional cost.
What is Delivery Instruction Slip?
By first look, DIS looks like a cheque book in which you DP ID details are already filled. This is issued by your broker to you at the time of demat account opening. First book is usually free and you have to pay for additional book if you need one.
Are there any charges on transfer of scrips from my previous DP to new DP?
As per SEBI regulation, your depository should not charge you for account closure nor for transfer effected through closes and transfer instructions. But you still need to check with your broker.
What are the charges for credit and debit of shares from my Demat Account?
Credit of shares in your demat account is completely free and debits are charged Rs 13.50 plus service tax per ISIN ( International Security Identification Number).
What is intra-depository tranfer and inter-depository transfer?
There are only two National Depositories in India NSDL (National Securities Depository Ltd.) and CDSL (Central Depository Service Ltd.) and your demat account will be with either of these. If your old and current demat accounts are with same depository, you’ll be making an intra-depository transfer. If they belong to different depository, then it will be called an inter-depository transfer.
What is DP ID and where can I find it?
Your unique DP Id is 16 digit alpha-numeric or just numeric number. For CDSL depository account, all 16 digits are number.
For NDSL depository account, first 2 digits are alpha and next 14 digits are number.
Now, first 8 digits represents your demat service provider called DP. It will be same for all the clients of that broker.
Next 8 digits represents your individual demat account number with your demat service provider which is also called beneficiary ID. It will be unique for you.
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