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More Related Topics
Stock
Broker
Choosing A Broker
Online Broker
Selection
Online
Trading Tips
Demat Account
Demat Account
and various Charges
by brokers
Brokerage Houses
Brokerage Structures of Major Broking Houses In India
Broker
Comparison
Brokerage
House In Depth Details
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An Overview on Demat Account Charges
in India Demat account is more or less an essential
requirement for all the investors who invest in equities, bonds and
debentures. On this site, I have written two articles on the subject of
Demat
“Know the Significance of DEMAT Account” and
“Know the basics of DEMAT Account”, wherein I have explained various
details about how and why of demat accounts. However, in none of the two
articles, I have mentioned about DP charges of various banks and brokers.
I thought that it might be helpful to the readers to have a look at the
comparison of demat charges.
Despite various efforts by the regulators to make electronic
transactions as cheap as possible for the ordinary investors, the charges
for Demat accounts continue to remain on higher side. Depending upon the
individual profile, requirements and suitability, different investors open
DP accounts with major banks, big online broking houses or local brokers.
In this article, I have given below a comparison of demat charges of
couple of well-known banks and big brokerage houses.
In the table, I have not included charges for Dematerialization,
Rematerialization, Pledge Services, off-market transfers and other minor
charges because, for most of the ordinary investors, these charges are
rarely applicable. I hope this comparison table will give an idea to the
investors about the prevailing Demat account charges.
Please note that many online brokers offer you low charges initially
but they may revise it subsequently. For instance, Reliance Money was
initially charging Rs.50 per year towards annual maintenance charges but
they have later on revised it to Rs.200 per year. Therefore, while
choosing the broker or bank for opening new demat account, you should
consider all the factors such as service, convenience, your frequency of
transactions, number of shares in physical formats etc. instead of taking
decision based only on the charges.
Comparison of Demat Charges
|
|
Account Opening
& documentation charges |
Folio Maintenance Charges
|
Transaction Charges for Debit of Shares
(in case of sell) |
|
Axis Bank |
Nil + Stamp paper fees |
500 |
0.04% of the transaction value, minimum 20 per
transaction |
|
Asit Mehta Investmentz.com |
Nil |
- No Annual Maintenance Charge
- Transaction charge as per various plans
- Lowest plan – Rs.500 per year, which includes
60 free transactions
- Note: even if nos of transactions are less
than 60 or nil, you will have to pay Rs.500 per year
- Above 60 transactions, Rs.20 per transaction
|
|
Bajaj Capital |
Nil |
250 |
0.02% of the transaction value, minimum 25 per
transaction |
|
Citi Bank |
Nil |
250 |
0.06% of the transaction value, minimum 17 per
transaction |
|
Geojit |
Nil |
300 |
11 flat per transaction10 flat per transaction |
|
HDFC Bank |
NIL |
500 per year |
0.04% of the transaction value, minimum 21 per
transaction |
|
HSBC |
Not known |
750 |
Free up to first ten transactions , thereafter
100 per transaction |
|
ICICI Bank |
100/- stamp paper charges |
500 per year |
0.04% of the transaction value, subject to
minimum 10,15 or 30 depending upon where and how you submit the
delivery instruction slip |
|
India Bulls |
100 |
500 |
10 flat per transaction |
|
Kotak Securities |
Not known |
30 per month; 360 per year |
0.04% of the transaction value, subject to
minimum 22 per transaction |
|
Reliance Money |
Not known |
200 per year |
12 flat per transaction |
|
SBI |
100 |
400 |
0.03% of the transaction value, minimum 10-30 per
transaction depending upon where and how you submit delivery
instructions |
|
Sharekhan |
Nil |
300 |
0.03% of the transaction value, minimum 30 per
transaction |
Note:
- As per the regulator SEBI, no broker can levy
transaction charges for credit of shares (when you buy) and therefore it
is free.
- On the above charges, the banks levy service tax
and education cess at the rate of 10.3%
- Many banks and brokers offer account opening and
documentation free of cost if you open trading account with them
- Many banks waive off annual maintenance charges
for the first year
- If you opt for E-Statements, some of the banks can
offer you discounts
- If you have a trading and DP account with the same
broker, you may have to pay substantially lesser charges for annual
maintenance and transactions.
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Comparison of Account Opening Charges,
Account Maintenance Charges, Charges for BUY and SELL trades.
When opening a new Demat
account with a broker negotiate and try to get
some of the charges waived off.
These are the charges
which matter most to most of us.
|
Depository |
Account
Opening Charges |
Account Maintenance Charges |
BUY
Charges |
SELL
Charges |
|
SBI
Charges |
NIL |
Rs. 400/-
per year (Rs.350/- if you choose email statement) |
NIL |
NIL for trade on' SBICAP Securities, else 0.03%
(Min. Rs.30/-) |
|
HDFC
Demat Account
Charges |
NIL |
Rs. 500/-
per year |
NIL |
0.04%
Min. Rs. 20/- |
|
CITI Bank
Demat Account
Charges |
NIL |
Rs. 250/-
per year |
NIL |
0.06%
Min. Rs.18/- |
|
Sharekhan
Demat Account
Charges |
NIL |
Rs. 75/- per quarter |
0.02%
Min. Rs. 15/- |
0.04%
Min. Rs. 15/- |
|
ICICI
Demat Account
Charges |
NIL |
Rs. 500/-
per year (Rs. 450 if you choose email statement) |
NIL |
NIL for trade on ICICIDirect.com, else 0.04%* |
*Min Rs.10/- for e-instruction, Min Rs.30/-
for instructions through branches.
Comparison of
Dematerialisation and
Rematerialisation charges
(only relevant if you
want or have shares in old paper format style)
|
Depository |
Dematerialisation Charges |
Rematerialisation Charges |
|
SBI
Demat Account
Charges |
Rs. 35/- for each request form, +Rs.2/- for each
certificate |
Rs. 25/- for each request form |
|
HDFC
Demat Account
Charges |
Rs. 35/- per request form+ Rs. 3/- per certificate |
Rs. 10/- per certificate |
|
CITIBank
Demat Account
Charges |
Rs. 50/- per request form |
Rs. 50/- per request form |
|
Sharekhan
Demat Account
Charges |
Rs. 15/- per request OR Rs. 3/- per certificate,
whichever higher |
Rs. 25/- or 0.12% of value, whichever higher |
|
ICICI
Demat Account
Charges |
Rs.35/- per request form + Rs. 2/- per certificate |
Rs. 20/- per request form. |
Comparison of Additional Statement Charges
and Account Closing Charges
|
Depository |
Additional Statements Charges |
Account Closing Charges |
|
SBI
Demat Account |
By courier: Rs. 30/-,
By email: NIL |
NIL |
|
HDFC
Demat Account |
Rs. 25/- (inland)
Rs. 500/- foreign |
? |
|
CITIBank
Demat Account |
? |
? |
|
Sharekhan
Demat Account |
Rs.10/- upto 10 pages. For every extra page, Rs.3/- |
Rs. 100/- |
|
ICICI
Demat Account |
Rs. 20/- |
NIL |
How to transfer
shares between Demat Accounts?
Just as every person is allowed to open as
many savings account as he likes, there are no restrictions of the number
of Demat Accounts a person can have. Moreover you can transfer shares from
one demat account to another (whether that other demat account is owned by
you or not) by following the steps.
- Fill in a
transfer-shares slip. Every Depository (DP) usually sends out such
transfer slips once in a year or so (just like banks issue check books).
If you have not received them, contact your DP.
- Once you fill in the
transfer slip, the shares will be transferred according to your given
instructions within a few days.
- Click on Demat Account
Charges to check various charges charged by leading Demat Accounts like
SBI Demat Account, ICICI Demat Account, Motilal Oswal Demat Account,
Sharekhan Demat Account, etc. for performing this transaction.
If you think you are not
going to use one of your demat accounts and would like to transfer all the
shares to your other demat account, you can give instructions to do so
while closing your account.
Note: If you have the list of your broker charges please
contact us
so that we can update the charges levied
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