DEMAT Account

What is DEMAT Account

DEMAT account is a facility that allows investors to hold shares in an electronic format. A demat account acts exactly like a bank account, which you use to transfer and receive money without using actual paper money. In this case, a DEMAT account enables you to electronically buy and sell shares on the stock market, without having to exchange physical share certificates.

To initiate transactions, you will need to log in to your demat account, using a client ID (provided by your brokerage firm, for example, Kotak Securities) and a password.

A DEMAT account also acts like a safe deposit – it holds the certificates of your financial instruments like shares, bonds, government securities, mutual funds and exchange-traded funds (ETFs) in a dematerialized form.

Wondering what is DEMATERIALIZATION? It’s simple.

Dematerialization is the process of converting share certificates from physical to electronic format.

By holding your certificates in dematerialized form, you:

- gain higher security and escape forgeries

- successfully avoid hassles of managing and maintaining physical documents which can decay, disappear or be damaged

Since India has shifted to dematerialized share certificates, you compulsorily need a DEMAT account before you start to trade on India’s stock exchanges.

Benefits of having a DEMAT account

• ZERO RISK:

Dealing with physical share certificates can put you at the risk of:

- Forgery – forging a copy of a paper is easy, using a demat account to store your shares electronically will help you avoid such a situation

- Loss – with our busy schedule, losing or misplacing a paper is commonplace. Using a demat account ensures that all your shares are stored in one place, safely

- Damage of paper or ink – over time, papers decay and inks erode. Using a demat account ensures there is a permanent, digital record of your transactions

In the demat form, certificates last forever and opening a Demat Account with Kotak Securities puts you at zero risk

• ZERO PAPERWORK:

When you use a demat account to buy and sell shares, all your certificates are in electronic form - thus transactions are hassle-free and less cumbersome. When you trade shares or other financial instruments, there is no need to actually hand over certificates to the buyer or seller.

After opening a demat account, you will have to deal with zero paperwork.

• ZERO COST:

Dealing in physical securities involves a lot of additional costs such as handling expenses, stamp duty as well as for safety. These are very hard to determine beforehand. All these are eliminated when maintaining a demat account. Since the brokerage charges you have to pay are detailed in advance, you pay zero hidden costs.

• ZERO TIME:

Buying and selling shares through your demat account in electronic format is instant. Earlier, exchanging physical certificates used to take weeks, if not months. This means transactions become seamless and inexpensive. And transactions require zero time.

Advantages of a Kotak Securities DEMAT account

20 Reasons to Trade with Zerodha, The Discount Stock Broker

Published on Sunday, March 30, 2014 by Zerodha | Modified on Thursday, March 1, 2018

LOOKING FOR A SHARE BROKER?

We can help you find the right broker for your trading needs.

Zerodha is India based discount broker offering stock and commodity trading at flat Rs 20 or 0.01%/0.1% whichever is lower per executed order. Zerodha is among the cheapest and best brokers in India.

Zerodha is India's fastest growing brokerage and largest discount broker. Zerodha has over 50,000 clients contributing to a daily turnover of over Rs. 5000 crores on NSE, BSE, MCX, and MCX-SX.

Zerodha charges a flat fee of Rs. 20 per executed order irrespective of the size of order. Zerodha also give its lower volume traders a benefit of 0.01% for intraday & futures, 0.1% for delivery, or Rs 20 whichever is lower.

With Zerodha; you can trade using Zerodha Trader (ZT); the desktop terminal, Z5; the HTML5/Web application, or its mobile application.

Here are top 20 reasons why you should choose Zerodha as broker:

Zerodha Pricing

Rs 0 (FREE) for equity delivery trades and Rs 20 or .01% whichever is lower per executed order for everything else.
Same pricing for Equity, F&O, Currency, and Commodity on NSE, BSE, MCX-SX and MCX.
No upfront fee or turnover commitment.
No special penny stock brokerage or minimum contract charge.
Brokerage Calculator to help you calculate all charges upfront.

Zerodha Support

Z-Connect, interactive blog and portal for all your queries.
Over 96,000 customers, averaging a daily turnover of over Rs 8000 crore. (As of Dec 2015)
No Relationship Managers, no brokerage or sales targets, no forced trades.
250+ dedicated support team to ensure the fastest turnaround time for your queries via email or phone. (As of Dec 2015)
Zerodha Associate Program: Refer a friend - earn for a lifetime

Zerodha Platform & Technology

Trading, charting, and analysis, all rolled into one next generation desktop platform Pi. Desktop, Web, and Mobile trading platforms.
Minimilastic, intuitive, responsive web based trading platform Kite.
Innovative and unique trading tools - SPAN Calculator, Bracket orders & Trailing Stoploss, Market Intel, algoZ, Option Strategy, Market Monitor,etc.
Amongst few brokerages with multi-datacenter disaster management infrastructure for safety,speed, and reliability. Exchange connectivity of 140 orders/second vs. an industry average of 40 orders/second
Q & Quant, the next generation backoffice, reporting, and analytics suite

Other Benifits with Zerodha

60-day-challenge - Trade profitably and get acknowledged... with a full brokerage refund
algoZ - write, backtest and go live on Technical Analysis strategies for free
Average exchange margin utilization of 55% vs. industry average of 70% -- lower broker risk
T+0 settlement on NSE and no additional margin on MCX -- lowest overnight margin requirement
Debt free, profitable, and QOQ growth from day one (37 cr. revenue in 2013-14 and 70 cr. in 2014-15)

How to open a DEMAT account – Procedure

Step 1: Fill up demat account opening form
Step 2: Submit Documents
Step 3: In-person Verification
Step 4: Once the process is complete you will be provided with the Account Number / ID

When you fill up the short, demat account opening form on our website, you will receive a call from a Kotak Securities customer care executive within 3 minutes on a working day. This call helps us understand:

a) If you have valid Pan Card and Aadhaar Card,
b) Your location, so we can assign a Relationship Manager (RM)

You then have to submit copies of these documents to our Relationship Manager, who will collect it from any location convenient for you. This also completes the mandatory in-person verification required to open a demat account.

On the completion of the above procedures, you will receive your Demat Account number and Client ID on your email as well as by post.

The demat account opening procedure at Kotak Securities is hassle-free and does not take more than a few days.

Documents required for a DEMAT account with Zerodha Securities

Filled application form for opening DEMAT account
Passport size Photographs
Proof of identity (Aadhar Card, Driving License, Voter Id)
Proof of address(Aadhar Card, Passport, Driving License, Voter Id)
Copy of PAN card

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DEMAT Account Charges

DEMAT Fees

Zerodha is a Bangalore, India based Flat Fee Share Broker (Also known as Budget Broker / Discount Broker / Pay Per Order Brokerage) for trading in Stock, Commodity and Currency Derivative. It charges brokerage of 0.01% or Rs 20 per executed order, whichever is lower, irrespective to number of shares or their prices (Except equity delivery trades wh...

Zerodha offers stock trading account and demat account services. Customer pays the fees, commission and taxes while trading with Zerodha. Zerodha fee structure and trading commission rates are explained as below.

Zerodha Account Opening Fee / Annual Maintenance Charges (AMC)

To open Zerodha account you have to pay account opening charges and annual maintenance charges (AMC).

Zerodha account opening charge & Zerodha AMC 2018
Transaction	Fee
Trading Account Opening Charges (One Time)	₹300
Trading Annual Maintenance Charges AMC (Yearly Fee)	₹0 (Free)
Demat Account Opening Charges (One Time)	₹100
Demat Account Annual Maintenance Charges AMC (Yearly Fee)	₹300

Find information about Zerodha account opening, Zerodha open account, Zerodha opening charges, Zerodha account opening charges, Zerodha account opening status, Zerodha amc charges, Zerodha account charges and Zerodha account closure.

Contact Zerodha / Request Call Back

Zerodha Brokerage Charges 2018

Customer pays commission (brokerage) when buying or selling stocks through Zerodha. The brokerage charges for equity, commodities and currency derivative trading for Zerodha are explain as below.

Zerodha Brokerage Plan - Standard Plan
Segment	Brokerage Fee
Flat Monthly Fee
Equity Delivery	₹0 (Free)
Equity Intraday	₹20 per executed order or .01% whichever is lower
Equity Futures	₹20 per executed order or .01% whichever is lower
Equity Options	₹20 per executed order or .01% whichever is lower
Currency Futures	₹20 per executed order or .01% whichever is lower
Currency Options	₹20 per executed order or .01% whichever is lower
Commodity	₹20 per executed order or .01% whichever is lower

Zerodha Demat Account Charges 2018

The demat account transactions are charged separately from trading commission. Find Zerodha demat account charges 2018.

Zerodha Depository Service Charges for Resident Retail Customers
ID	Transaction	Charges
1	Demat Account Opening Charges	₹0
2	Stamp Charges payable upfront (at actuals)	₹50
3	Annual Maintenance Charges (AMC):
	a. Individuals	₹300 Per Year + GST (Payable upfront every year)
	b. Corporates	₹1000 + GST (Payable upfront every year)
4	Transaction Charges per ISIN (Market Trades):
	a. Buy (Receive)	₹0
	b. Sell(Debit)	₹8 + ₹5.50 flat for every debit transaction
5	Inter Depository Transfer (Off-Market Trades):
	a. Buy (Receive)	NIL
	b. Sell(Debit)	0.03% or ₹25 whichever is higher
6	Demat (Per certificate)	₹150
7	Remat (Per ISIN)	₹150 (Per certificate) + CDSL Charges
8	Courier charges per Demat/ Remat request	₹100
9	Pledge per ISIN	₹20 + ₹12 per request (CDSL Charges)
10	Unpledge per ISIN	₹20 + ₹12 per request (CDSL Charges)
11	Pledge Invocation per ISIN	₹20
12	Periodic Statement:
	a. By Email	Free
	b. Physical	₹50 (Couier Charges)
13	Adhoc / Non Periodic Statement Requests:
	a. By Email	₹10 per request
	b. Physical	₹50 per request upto 10 pages. Every additional page at ₹5 (+Courier charges at actual)
14	Delivery Instructions:
	a. First Delivery Instruction Book	Free (10 leaves)
	b. Every Additional Booklet	₹100 (10 leaves)
15	Cheque Bounce/ Per cheque	₹350
16	Failed Transactions	₹50 per ISIN
17	Modification in CML	₹25 per request
18	KRA Upload / Download	₹50

All information about Zerodha demat account, Zerodha demat account review, Zerodha demat account charges, Zerodha demat account opening, Zerodha dp charges, Zerodha demat charges and Zerodha dp id

Zerodha Transaction Charges / Turnover Charge

A combination of Exchange Turnover Charge and Trade Clearing Charge. Know more about Transaction Charges.

Zerodha transaction charges
Segment	Transaction Fee
Equity Delivery	NSE ₹325 per crore \| BSE ₹1 per trade (each side)
Equity Intraday	NSE ₹325 per crore \| BSE ₹1 per trade (each side)
Equity Futures	NSE ₹210 per crore \| BSE ₹1 per trade (each side)
Equity Options	NSE ₹5300 per crore \| BSE ₹1 per trade (each side)
Currency Futures	NSE ₹135 per crore (0.00135%)
Currency Options	NSE ₹4400 (on premium) per crore (0.044%)
Commodity	Non-Agri ₹360 (0.0036%) \| Agri ₹275 per Crore

Here are some things to know about DEMAT account:

ELECTRONIC CERTIFICATE

There are three key requisites for trading in the stock market – a bank savings account, trading account and a DEMAT account. When you buy a share, you own a portion of a company’s assets. To prove your ownership, you are given a certificate. Today, this certificate is electronically available in your DEMAT account or DEMAT accounterialized account.
CENTRAL DEPOSITORY

For this reason, the first step of trading in the equity market is creation of a DEMAT account. There is a central database of all DEMAT accounts. It is called a depository. There are two depositories – CDSL and NSDL.
DEPOSITORY PARTICIPANTS

Banks, brokers and financial institutions are empowered to offer DEMAT account services. They act as the intermediary between the central depository and the investor, and are called depository participants (DPs). This means, CDSL and NSDL hold details of your shareholding on your behalf, just like banks hold your money in different kinds of accounts.
TRANSACTION IDENTIFICATION

Just like the DEMAT account, a trading account is a must for investing in the stock market. You register for a trading account with a stock broking firm. Each account comes with a unique trading ID, which is used for conducting transactions. To conduct a trade, you deposit some money in your trading account. This is linked to your DEMAT account. Using the money in your account, you place an order for a stock. Once the order is processed, the stock exchange identifies that the order belongs to you using your unique trading ID. It then forwards the shares to your DEMAT account.
PORTFOLIO HOLDING

At any time, your DEMAT account reflects the details of your portfolio. This includes stocks, bonds, mutual fund units, Exchange Traded Funds (ETFs), as well as government securities in electronic form. So, whenever you invest by buying stocks, it will be credited to your DEMAT account. Similarly, if you sell any of your holdings, these will be removed from your account.
NO MINIMUM BALANCE

A bank account requires a minimum balance. However, this is not so for DEMAT Account. There is no minimum number of securities required to keep the account rolling.