State bank of india trading account charges
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How to Open a Demat Account? The first and foremost step is to approach DP or depository participant with whom you want to open your Online Demat Account. Like a bank or broker, depository participant acts like an agent between the investor and depository. Secondly, you will have to fill up online demat account opening form and attach documents for proof of your identity and address. The documents that you will need are: You will have to sign a pact with your depository participant in which all the rules and regulations will be written to be followed by the investor and DP both.
Your DP will give you the copy of the agreement. Once the agreement is signed and the verification of your documents will be done, in about 15 days you will get your online demat account number. All your future transactions will be done with this ID. Now that you own a demat account, you can step into the world of stock exchange and start investing your money in mutual funds , shares, debentures, insurance, retirement funds etc.
You can open a demat account with zero amount and also you need not have any minimum balance to maintain the account. You may have zero balance in your online demat account. Apart from the procedure to open a online demat account, one should also know the Demat Account charges Demat Account Charges There are mainly 5 types of Charges that are levied on Demat Accounts 1.
Annual Maintenance Fee This charge is mainly folio maintenance charge which is levied well in advance. If they are offering you good services, the Maintenance Fee would be high, else it would be low 3. Custodian Fee The Custodian Fee is charged for safely keeping your Shares in the Demat Account and is charged based on the number of securities in your account. Dematerialization Fee In case you have share certificates in physical form, the bank would also be charging you a very nominal fee to convert these physical shares into online form.
Every shareholder will have a Dematerialized account for the purpose of transacting. Access to the Dematerialized account requires an internet password and a transaction password. Transfers or purchases of securities can then be initiated. Purchases and sales of securities on the Dematerialized account are automatically made once transactions are confirmed and completed.
Further, it eliminates the risks associated with forgery and due to damaged stock certificates. After the introduction of the depository system by the Depository Act of , the process for sales, purchases and transfers of shares became significantly easier and most of the risks associated with paper certificates were mitigated.
In , trading began on NSE for shares held in demat account form. It was the beginning of a new paperless trading stock market trading environment. If an investor buys a share today, it gets credited to the investor's account in two days.
Today, shares get transferred to the investor's demat account. The depository system helps in reducing the cost of new issues due to lower printing and distribution costs. It increases the efficiency. Benefit to the investor: The depository system reduces risks involved in holding physical certificates, e. It ensures transfer settlements and reduces delay in registration of shares. It ensures faster communication to investors. It helps avoid bad delivery problems due to signature differences, etc.
It ensures faster payment on sale of shares. No stamp duty is paid on transfer of shares. It provides more acceptability and liquidity of securities. It reduces risks of delayed settlement. It ensures greater profit due to increase in volume of trading. It eliminates chances of forgery or bad delivery.
It increases overall trading and profitability. It increases confidence in their investors. A depository in simple terms is an institution holding a pool of pre-verified shares held in electronic mode that offers efficient settlement of transactions. A Depository Participant DP is an intermediary between the investor and the depository. A DP is typically a financial organization like a bank, broker, financial institution, or custodian acting as an agent of the depository to make its services available to the investors.
Converting physical records of investments into electronic records is called "dematerialising" of securities. In order to dematerialise physical securities, investors must fill in a Demat Request Form DRF , which is available with the DP and submit the same along with physical certificates.
A comparison of the fees charged by different DPs is detailed below. There are a few distinct advantages of having a bank as a DP. Having a Demat account with a bank DP, usually provides quick processing, accessibility, convenience, and online transaction capability to the investor.
Generally, banks credit the Demat account with shares in case of purchase, or credit a savings account with the proceeds of a sale, on the third day. Banks are also advantageous because of the number of branches they have. Some banks give the option of opening a demat account in any branch, while others restrict themselves to a select set of branches. Some private banks also provide online access to the demat account. Hence, the investors can conveniently check online details of their holdings, transactions and status of requests through their bank's net-banking facility.
A broker who acts as a DP may not be able to provide these services. There are four major charges usually levied on a demat account: Charges for all fees vary from DP to DP. Depending on or may not be an opening account fee.
But in Ventura Securities ltd, Angel Broking  and some other companies do not have an any opening charge. State Bank of India does not charge any account opening charge while other maintenance and transaction charges apply.