Since you have been filled with a lot about the Demat account and its necessary jargon. Now let us proceed to:
5 Easy Steps To Open A Demat Account
- Pick one DP taking into consideration of the brokerage charges, and demand charges related to shares. Remember your DP can be any choice of your bank, financial institution, or broker.
- File an account form along with the KYC form with the necessary required document in hand.
- Read thoroughly the given terms and conditions of the Demat account and if necessary ask your queries, so that you won’t have any misunderstanding. By this sign the form and proceed further.
- After successfully opening the account, the user will receive a Client ID from their DP.
- With this ID you can operate your actions online and also get a hands-on solution manual to use the services and translation details associated with your DP.
Top 5 Banks In India With Demat Account Services
ICICI Bank
- The users experience self-explanatory advanced technologies related to trading and also hold a Pan India presence.
- It has a vast variety of brokerage plans as per your requirements.
- If you are already holding an account in this bank, you should swift your account to Demat account.
HDFC Bank
- This security service provider has been awarded as the best Ethical company as swears for the safety and security of its investors.
- It is one of the first to provide voice assistance and not only that but guidance related to trading offline and in-person to have a better trust in the work functions.
- Their digital platform Digify gives services to invest in mutual funds and DigiGold to invest in gold for their customers.
Kotak Bank
- The company gives assistance to the one who finds difficulty in investing or making their portfolio.
- The company has an international presence and hence one can trade within them.
- Kodak University, provides educational assistance with articles, videos to help guide fundamentals of stock markets and related jargon.
Axis Bank
- This bank service provider company is one of the few that provide Integrated-Trading-Demat- Bank account.
- They charge 0.25% of the trade value which is somewhat lower.
SBI Bank
- Also known by SBICAP Securities, provide precise brokerage and is a trusted bank since 1995.
- They provide a high insight into the investing of a particular company which makes investors confident in taking decisions.
- They have a smart institute to provide necessary education related to trading and investments.
Minimum Balance For Demat Account
- The minimum balance to open or maintain this account closely depends upon the DP you have opted for. This can range from 0 to 500 rupees.
- As the sole purpose of the Demat account is to hold the shares there is no such money-related issues, thus no such maintenance of balance is a necessity.
Closure Of The Demat Account
- If you have more than one Demat account which is of no use or inactive it is better to close it to avoid any further unnecessary brokerage charges. One should visit their DP office to get this done
Easy Steps To Close The Account
- Download the closure form from your respective DP’s website.
- Carefully fill the required information with the attachment of the KYC form. Make sure you are filling your Client ID accurately.
- Before submitting the form, check your account balance, or if the balance is negative settle the cost beforehand.
- The reason for closing the account should be mentioned with all the information matching the former filled form. Like the address, name, etc.
If by any chance you won’t be able to close this account, this account will be no longer be used for further transactions and it will be a dormant Demat account.
If still the dormant account is not reactivated the bank calls it inactive and it expires. This happens when the time limit exceeded 6 months or so without any transaction happening.
Transfer Of Funds From One Demat To Another (Online)
- One has to fill the DIS(Delivery Instruction Slip) and submit to the broker.
- This then gets to the DP as a request form.
- Your DP will transfer the shares to your account.
- Once the process is done, the same amount will be reflected in the account.
Transfer Of Funds From One Demat To Another (Offline)
- If one has shares in NSDL or CDSL they get the option to transfer offline.
- The same DIS slip needs to be filled with all details of the number of shares, DP information, and Client ID.
- Afterward, the same will be the further steps.
