A depository participant (DP), such as a bank, acts as an intermediary between the investor and the depository. In India, a DP is described as an agent of the depository. The relationship between the DPs and the depository is governed by an agreement made between the two under the Depositories Act. The demat account number is quoted for all transactions to enable electronic settlements of trades to take place. Access to the dematerialized account requires an internet password and a transaction password which allows the transfers or purchases of securities.
A security is a tradable financial asset; the term commonly refers to any form of a financial instrument, but its legal definition varies by jurisdiction. Purchases and sales of securities on the demat account are automatically made once transactions are confirmed and completed.
There are three types of demat accounts offered by depository participants:[1]
Regular demat accounts
Repatriable demat accounts (allows foreign funds and transfers abroad)
Non-repatriable demat accounts
Feesedit
There are four major charges usually levied on a demat account: account opening fee, annual maintenance fee, custodian fee and transaction fee. Charges for all fees vary by depository participant.
Account-opening fee - There may not be an opening account fee. Private banks do not have one, but other entities do impose an opening fee.[2]
Maintenance fee - This is also known as folio maintenance charges, and is generally levied in advance.[3] It is charged on an annual or monthly basis.
Custodian fee - A fee for holding the securities.
Transaction fee - A fee per transaction.
Documents requirededit
Opening a demat account requires providing documents that fulfill the requirements of Know Your Customer.[4]
^"Everything about demat account fees and charges". Moneycontrol. Retrieved 2020-05-02.
^"Everything about demat account fees and charges". Moneycontrol. Retrieved 2020-05-02.
^"How to open demat and trading account online". The Economic Times. Retrieved 2021-04-06.
External linksedit
Central Depository Services Limited website
April 15, 2024
demat, account, this, article, multiple, issues, please, help, improve, discuss, these, issues, talk, page, learn, when, remove, these, template, messages, examples, perspective, this, article, represent, worldwide, view, subject, improve, this, article, discu. This article has multiple issues Please help improve it or discuss these issues on the talk page Learn how and when to remove these template messages The examples and perspective in this article may not represent a worldwide view of the subject You may improve this article discuss the issue on the talk page or create a new article as appropriate April 2018 Learn how and when to remove this template message This article needs additional citations for verification Please help improve this article by adding citations to reliable sources Unsourced material may be challenged and removed Find sources Demat account news newspapers books scholar JSTOR February 2020 Learn how and when to remove this template message This article possibly contains original research Please improve it by verifying the claims made and adding inline citations Statements consisting only of original research should be removed February 2020 Learn how and when to remove this template message Learn how and when to remove this template message A demat account is an Indian term for a dematerialized account that holds financial securities equity or debt digitally and to trade shares in the share market In India demat accounts are maintained by two depository organizations the National Securities Depository Limited and the Central Depository Services Limited A depository participant DP such as a bank acts as an intermediary between the investor and the depository In India a DP is described as an agent of the depository The relationship between the DPs and the depository is governed by an agreement made between the two under the Depositories Act The demat account number is quoted for all transactions to enable electronic settlements of trades to take place Access to the dematerialized account requires an internet password and a transaction password which allows the transfers or purchases of securities A security is a tradable financial asset the term commonly refers to any form of a financial instrument but its legal definition varies by jurisdiction Purchases and sales of securities on the demat account are automatically made once transactions are confirmed and completed Contents 1 Types of demat accounts 2 Fees 3 Documents required 4 References 5 External linksTypes of demat accounts editThere are three types of demat accounts offered by depository participants 1 Regular demat accounts Repatriable demat accounts allows foreign funds and transfers abroad Non repatriable demat accountsFees editThere are four major charges usually levied on a demat account account opening fee annual maintenance fee custodian fee and transaction fee Charges for all fees vary by depository participant Account opening fee There may not be an opening account fee Private banks do not have one but other entities do impose an opening fee 2 Maintenance fee This is also known as folio maintenance charges and is generally levied in advance 3 It is charged on an annual or monthly basis Custodian fee A fee for holding the securities Transaction fee A fee per transaction Documents required editOpening a demat account requires providing documents that fulfill the requirements of Know Your Customer 4 References edit About Demat Account India Infoline Everything about demat account fees and charges Moneycontrol Retrieved 2020 05 02 Everything about demat account fees and charges Moneycontrol Retrieved 2020 05 02 How to open demat and trading account online The Economic Times Retrieved 2021 04 06 External links editCentral Depository Services Limited website Retrieved from https en wikipedia org w index php title Demat account amp oldid 1212169183, wikipedia, wiki, book, books, library,
