Things that one must understand before opening a Demat Account
You have to pay some charges when you open a Demat account. You also need to pay some charges for operating the same. At a primary level, these are the ones you are likely to encounter – annual maintenance fee, transaction fee, and account opening charges. The annual maintenance fee would be charged from you in advance. This means that here you are paying for the next year during which the concerned service provider would keep your account operational. This fee can range anywhere between 300 and 800 rupees depending on the service provider. In exchange of this money, your broker would provide you the services that you want regularly.
Some more information on these charges
One of the most important among the various Demat account charges is the money you pay for opening the same. Please remember that there is no uniform amount in this case as well. The broker would charge the money from you based on factors such as structure, services offered by them, and the overhead expenses. The discount brokers are known to charge the lowest for opening such an account. The transaction fee is the money that you pay for each transaction that you perform through such an account.
Documents needed to open the account
The documents needed to open demat account could be divided into two main groups – identity proof and address proof. When it comes to identity proof following are the necessary documents in this regard:
- PAN (permanent account number) card
- driving license
- voter ID card
- Aadhaar card
- passport
You can submit any of these as your identity proof in such an application. Similarly, any of the following documents can act as address proofs in such a process:
- ration card
- bank passbook
- passport
- electricity bill
- driving license
- voter ID card
Please remember that you have to mandatorily submit your PAN card when you apply to open such an account.
Steps for opening such an account
The first step of the process is to choose a broker. It is always better to go for a top name such as Sharekhan. After that, you need to get in touch with them to initiate the process properly. However, before you do this, please compare the rates and the services offered by various brokers. The broker would send a representative to your home for you to fill up the KYC (know your customer) and power of attorney forms. You would receive all the account details from your service provider after completing these formalities.