Get Your Demat Account Online

DEMAT Account

Account that provides the facility of holding shares and securities in electronic format is called DEMAT account. Account holder can buy and order their share through this account. DEMAT Account stores information about mutual funds, trading exchange information, bonds, government securities funds and other useful records. Account holder gets the authority to access and handle these facilities from one platform.

Demat account is a short form of dematerialized account that allows to account holders to be the owner of the shares and securities in electronic format. Dematerialization is the process of converting share certificates in electronic format which makes it easy and convenient for the accountholder to keep and maintain the shares from anywhere in the world. In the electronic trading system, the shares are brought and held in a demat account that facilitates convenience of easy trading for the shareholders. An account holds all the investment made by an individual in shares, exchange traded funds, government securities, bonds, and mutual funds, all at one place. The online trading services are provided by depositories such as NSDL and CDSL through the network of intermediaries, depository participant, and stock brokers. The charges vary according to the volume held in the account, subscription type, and the terms and conditions laid by the stock broker and the depository.

In simple words, demat account is more than similar to a saving or current account, the only difference is that the account holds securities such as shares, debentures, mutual funds, exchange traded funds, bonds, and government securities, instead of holding cash. The account acts like an alternative for holding securities in the form of physical certificates.

It is mandatory for the company enrolled in a stock exchange to offer the securities in both physical and dematerialized format; where, physical securities denote the original certificate, whereas, dematerialization converts the physical shares in the digital format along with the entire information about the shares of a company owned by an individual. Therefore, to buy or sell the securities in Indian Stock Market, an individual is required to open a demat account. Such account reduces the risk of share certificate fraudulent, postal delays, and counterfeit shares because the online mode of holding the securities is quite safe and convenient.



Objective of DEMAT Account

1. Opening DEMAT account less costly.
2. Lowest Documentation Required.
3. Instant transaction facility.
4. Completely secure and robust account.

Types of DEMAT Account

If you are investor then DMAT account is mandatory for you. It offers different types of benefits to customers. There are two main type of DEMAT account 

1. Repatriable demat account: - Fund or Amount that can be transferred in other countries is called repatriable amount and account that offer this facility is known as repatriable demat account. 

2. Non- Repatriable demat account :- Funds deposited in different bank but cannot be transferred to other countries refer as Non-Residential Ordinary and Account that offer this type of facility is known as Non- Repatriable demat account.



Importance of DMAT Account

Demat account offers most secured way to handle and mange your account related securities and allow instant transaction and approval facility easily. Account holder will get protection from online trapping, financial trapping, Damage of physical certificate, forgery, thefts and several other possible threats. You will get facility to track and access your account from anywhere as per your interest and need. User will also get freedom from paying stamp charges and custom charges.


Benefits of DEMAT Account

Authorize banks offers following facility for account holder

1. Benefits in online transaction.
2. Account can be use for debit and equity investment. 
3. One of best secure transaction facility provider.
4. In case of Utilities transfer Zero stamp charges.
5. Least use of paper work. 
6. Easy transaction facility.
7. Account holder will get flexibility in account accessing; you can access your account anytime from anywhere.
8. Much integrated funds and records sharing Facility.

Disadvantage of DEMAT Account

1. Sometimes dematerialized securities create complication.
2. Sometimes fund approval and other process may consume too much time that irritate account holder.
3. Procedure to handle DMAT account is quite complicated. If you are successful account holder then you can close your account.
4. To boost your business you have to follow some important protocol otherwise you will not boost in trading.

Important Document to open DEMAT Account

1. Last Three Month Banks Statement.
2. Applicants PAN Card.
3. Two Passport size Photograph.
4. Proof of income tax return.
5. Valid Address Proof.
6. Aadhar card.
7. KYC Details.
8. Applicants Cheque Book.

A copy of PAN card – As per the instruction of the National Securities Depository Limited (NSDL), it is mandatory to submit a copy of PAN card while opening demat account, in order to avoid the existence any fake trading account.

Individual verification – To open a demat account, an applicant is also required to submit the copy of documents including Voter ID, passport, saving account details, and hardcopy of an application. However, the NRIs and foreign nationals are provided the flexibility to escape the session. Thus, they can send all the mandatory documents such as duly filled account opening form, identity, and residential proof via post. The documents need to be duly attested either by the consulate general of the country or by the Indian embassy.


Fees and charges incurred:

Account opening fee – The value of the fee varies according to the depository participant. There are certain groups who don’t charge any fees for opening a demat account such as HDFC Bank, Axis bank, and ICICI. On the other hand, some DPs do charge an account opening fee. Also, the stock holding corporation allows the accountholder to hold the account for longer by paying a lifetime fee. The fee is wholly refundable.

Transaction fee – A nominal transaction fee is charged every month for all debit and credit transactions held during a month. However, the value of the fee depends on the type of transaction, i.e., selling or buying of shares. While some depository participants may charge only for debit transactions, others might charge for credit transactions as well. In addition, service tax is also charged along with the transaction fee.

Conversion charges – The depository participant (DP) can charge for the conversion of shares for every conversion from electronic to physical mode and vice versa.

Maintenance fee – A management fee is charged in monthly or annual intervals.


Steps to Open Demat Account at Applykaroo

1. Go to url following window will appear on screen.

2. Enter your city name, monthly income and your profession in search box. Then, click on SEARCH button and following window will appear on screen

3. List of all banks will appear on screen as per your eligibility.

4. Then, user can select the best DEMAT account as per his interest and now click on the APPLY NOW button.

5. Now fill the application and proceed for further processing.

6. After activation of your account you will be able to enhance your business and trading.


How does a demat account works?

It is somewhat similar to physical trading; the only difference is that it works on electronic platform. The trading begins with the orders placed through an online trading account. Thus, it is mandatory to link both demat and trading account. The exchange security board will process the order once it is placed and the owner will get the entire details along with the current market price and the availability of the shares. Also, when a shareholder decides to sell the shares, the instructional note is sent to the account holder with details of the stock. On finalizing the process, the shares are debited and the equivalent cash value, against the shares sold, is credited to the trading account.

This online trading system was first introduced in the year 1996 under the Depository Act which made the dealing process of securities quite easy, reliable, and convenient. The system reduced the involvement of paperwork to almost zero. The system also comes with great transparency that reduced the risk of confusion and fraudulent.

Features of a demat account:

Easy share transfers

Through a DIS (delivery instruction slip) or RIS (receipt instruction slip), investors can easily transfer their holdings. These slips allow the account holder to access all the details required for executing the transfer.

Quick dematerialization & re-materialization of securities

Shareholders can provide instructions to their DP (Depository participant) for converting their physical certificates in an electronic format. Simultaneously, electronic securities can be converted into physical format.

Loan facility 

Certain lenders also provide loans against the securities held in the demat account of the shareholder. The holdings are treated as collateral to approve the loan.

Freezing the accounts

If required, accountholders can freeze their account for a specific period of time. This will prevent from any unexpected debits or credits.

Multiple accessing options 

As demat account is operated on an electronic platform, it can be accessed using multiple modes. The accounts can be accessed via any smart device such as smart phone and computer.

E-slip facility 

As per the instruction of the National Securities Depository Limited (NSDL), security-owners are send instructions electronically instead of sending hardcopy of the slip to the depository participant. This makes the process more reliable, easy, convenient, and quick.

Corporate benefits 

The privileges offered by the company in the form of dividends, refunds, bonus, and interest are automatically delivered to the demat accountholders.


How to open a demat account?

1. First of all, select your depository participant that can be any financial institution such as banks, brokers, and custodians, which will actually work as an agent of the depositary to avail the services to the investors.
2. Fill the account opening application form and submit along with the copy of mandatory documents
3. In-person verification will be conducted by the depository
4. Once the verification process is complete, DP will provide a unique account number that will be treated as shareholder ID, which can be used for accessing the demat account online.

Types of online trading account:

Repatriable demat account : As Repatriable funds can be taken abroad, they need to be kept in an individual bank account, i.e. NRE bank account. Typically, the funds brought in and from foreign currency are kept in such n account. Investments made from such an account can be repatriated and thus, are maintained in a Repatriable demat account.

Non-Repatriable demat account : As funds cannot be taken abroad, they need to be kept in a separate bank account, i.e. NRO bank account. Thus, investments made from such funds cannot be repatriated and so, are maintained in an individual non-Repatriable demat account. Once the funds are transferred from NRE to NRO bank account, the repatriability of the account gets lost and cannot be converted to NRE account.


Key benefits of the account:

1. The risk of fraud and skimming is reduced and the shares, bonds, and debentures are transacted under utmost safe and reliable gateways 
2. Transaction cost is lower than the cost involved while dealing with physical counterparts
3. It is now easy and simple to invest in shares and securities online
4. Any number of shares can be transacted at a time
5. Hard copy of physical certificates often involve the risks such as fake certificate, theft, forgery, poor delivery, transfer delays, etc. An online trading system eliminates all these threats
6 Electronic settlements are quite easy, faster, and convenient