Comparison of demat accounts in India
A demat account is a convenient way to hold most of your investments – from stock and mutual funds to NCDs and NSC. Here’s how depository participants are charging customers.
A demat account – short for dematerialised account – is convenient for any regular investor. While initially meant only for storing equities electronically, you can now hold mutual fund units, bonds, debentures and national savings certificate. If all goes according to plan, perhaps you’ll be able to control your insurance policies here, too.
Its best use, now that you can have control online, is that you can make changes at your convenience. You can simply log in and transact in shares. It also gives you access to certain investments that would not be beyond reach without it. ETFs and NCDs, for example, require an active demat account.
The service is offered by depository participants (DPs), which can be banks, trading houses and other financial institutions. Here’s a list of their charges and fees.
As per Basic Services Demat Account, introduced by SEBI in August 2012, no annual maintenance charge will be levied on an account in which the holdings do not exceed Rs50,000. There is no restriction on how many accounts you can hold:
|DP||Account opening charges||Annual maintenance charges||Brokerage|
|Angel Broking||Rs390||First year free, Rs300 thereafter||30p per transaction, delivery based
6p per transaction, intra-day based
|HDFC Securities||Rs999||Rs300 to Rs750, depending on number of transactions||0.5% of transaction value, delivery based
0.05% of transaction value, intra-day
|ICICI Direct||Rs975||First year free, Rs500 thereafter||0.25% to 0.75%, depending on transaction value|
|IndiaBulls||Rs1,350||Rs450||0.4% of transaction value, delivery based
0.04% of transaction value, intra-day based
|Kotak Securities||Rs750||Rs600||0.59% to 0.18% depending on transaction value, delivery based
0.06% 0.03% depending on transaction value, intra-day based
|Reliance Securities||Rs950||First year free, Rs200 thereafter||50p per transaction, delivery based
5p per transaction, intra-day
|SBI||Rs500||Rs350||75p per transaction, delivery based
5p per transaction, intra-day based
|Sharekhan||Rs0 (Online account)||First year free, Rs400 thereafter||0.1% of transaction value, delivery based
0.5% of transaction value, intra-day based
*Correct as on October 8, 2013
Accounts with a fixed transaction charge (Angel Broking, Reliance Securities, SBI) have a big edge over those that charge a percentage of the transaction value.