Sunday , 25 June 2017

Demat Charges

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.

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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