How to open Demat account ?
What is a demat account ?
Demat account is short form of Dematerialised account. You need a demat account to operate your trading such as buy and sell shares electronically or invest in equity or debt instruments. You should have sufficient funds in your demat account for online trading. When you buy or sell shares your account will get automatically adjusted. This method of trading has practically wiped out physical shares. You may have to pay annual maintenance charges for your demat account.
How to open a demat account ?
Demat account should be opened with DPs (Depository Participants). You can open a demat account at your bank like SBI, ICICI Bank, HDFC, etc as most banks are DPs or with your share broker. You need to fill Demat Account opening form, sign agreement with DP and also submit your Photograph, ID Proof, Address Proof, Standing Instructions, Nomination Form, etc.
Why is demat account compulsory for trading ?
SEBI (Securities and Exchange Board of India) has made it compulsory to trade in demat form if you want to buy more number of shares. When you open a demat account, the Depository Participant (DP) will allot a Beneficial Owner ID which is required to make transactions. Demat account reduces paperwork, reduces brokerage, reduces delay in processing, avoids postal delays, signature mismatch, etc.
Website Links to some of the banks / brokerage firms where you can open a demat account are:
* Almondz
* Citibank
* ICICI Direct
* Indiabulls
* Kotak Securities
* Reliance Money
* Religare Securities
* Sharekhan
* SBI
Brokerage Fees Comparison Table of some main Brokerage Houses in India
|
Broker Name
|
Delivery Charges
|
Intraday Charges
|
|
Angel Broking
|
50p
|
10p
|
|
Canmoney
|
0.35%
|
0.05%
|
|
Geogit BNP Parabas
|
0.30%
|
0.03%
|
|
Indiabulls
|
0.35%
|
0.05%
|
|
Kotak Securities
|
0.59%
|
0.6%
|
|
Reliance Money
|
1p
|
1p
|
|
Religare Securities
|
0.3%
|
0.06%
|
|
Sharekhan
|
0.5% or 10p
|
0.1% or 5p
|
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link : How to open Demat account ?
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