How to open Demat Account and Charges

Opening a Demate account

The first step towards investing in stock markets is to open a Demate account. A Demate account is opened with a depository participant, which may be a stock broker, a Bank or a financial intermediary. To open a Demate account you need to fill up a securities account opening form together with an agreement with the Depository Participant. Following documents should be enclosed with the form.
Passport size colors photograph
a copy of the PAN card.
An address proof (Copy of Passport, Driving License, Ration card, Election identity card, etc)
Proof of Bank account (a cancelled cheque or bank statement can be given)
A passport size color photograph of the nominee (if appointed)

Once these documents are submitted together with duly filled up account opening form, your demat account will be opened in a week’s time and you will receive a booklet containing instruction slips and your beneficiary account number. A DP ID number will also be printed on the delivery instruction booklet which is the unique identity number of your Depository Participant. These delivery instruction slips are used to transfer shares from your account to another account. You will need these when you sell shares through your broker or when you want to transfer shares to some other person.

Charges for opening a Demate account

There are two types of charges on your Demate account. One, annual maintenance charges and two, transaction based charges. Annual charges range from Rs. 100 per annum to Rs. 500 per annum for most of the Depository Participants and transaction charges vary from 0.01 percent to 0.05 percent of the transaction value, some Depository Participants, mostly brokers, charge flat transaction charges like Rs. 10 or Rs. 30 per transaction slip irrespective of the value of trade. Some brokers have come out with a lifetime free Demate account where you do not need to pay for annual account maintenance charges.