State bank of india trading account charges
The Custodian Fee is charged for safely keeping your Shares in the Demat Account and is charged based on the number of securities in your account. This is generally charged yearly and majorly depends on the number of securities in the Demat account. It may vary from Rs. The Transaction Fees is the fee which is charged for trading of shares. Whenever, you buy or sell a security, a brokerage would be payable by you which would depend on the scheme you have opted for as the charges vary from Scheme to Scheme.
In case you have share certificates in physical form, the bank would also be charging you a very nominal fee to convert these physical shares into online form. These Charges are not applicable for all Account Holders and are applicable only for those who have Physical Shares and opt for converting these Physical Shares if any into Demat Form. You may note that these charges may not remain same every month as DP can also revise them.
It is always highly advisable for the Investor to cross check the Account Charges levied by different Service Providers before opening a Demat Account. He is also the founder of this website and loves to help people with their Tax Queries. Select your email service Close Gmail Yahoo! How to Open a Demat Account? The first and foremost step is to approach DP or depository participant with whom you want to open your Online Demat Account.
Like a bank or broker, depository participant acts like an agent between the investor and depository. Secondly, you will have to fill up online demat account opening form and attach documents for proof of your identity and address.
The documents that you will need are: You will have to sign a pact with your depository participant in which all the rules and regulations will be written to be followed by the investor and DP both.
Your DP will give you the copy of the agreement. Once the agreement is signed and the verification of your documents will be done, in about 15 days you will get your online demat account number. The depository system helps in reducing the cost of new issues due to lower printing and distribution costs. It increases the efficiency.
Benefit to the investor: The depository system reduces risks involved in holding physical certificates, e. It ensures transfer settlements and reduces delay in registration of shares. It ensures faster communication to investors. It helps avoid bad delivery problems due to signature differences, etc. It ensures faster payment on sale of shares.
No stamp duty is paid on transfer of shares. It provides more acceptability and liquidity of securities. It reduces risks of delayed settlement. It ensures greater profit due to increase in volume of trading.
It eliminates chances of forgery or bad delivery. It increases overall trading and profitability. It increases confidence in their investors. A depository in simple terms is an institution holding a pool of pre-verified shares held in electronic mode that offers efficient settlement of transactions. A Depository Participant DP is an intermediary between the investor and the depository.
A DP is typically a financial organization like a bank, broker, financial institution, or custodian acting as an agent of the depository to make its services available to the investors. Converting physical records of investments into electronic records is called "dematerialising" of securities. In order to dematerialise physical securities, investors must fill in a Demat Request Form DRF , which is available with the DP and submit the same along with physical certificates.
A comparison of the fees charged by different DPs is detailed below. There are a few distinct advantages of having a bank as a DP. Having a Demat account with a bank DP, usually provides quick processing, accessibility, convenience, and online transaction capability to the investor.
Generally, banks credit the Demat account with shares in case of purchase, or credit a savings account with the proceeds of a sale, on the third day. Banks are also advantageous because of the number of branches they have. Some banks give the option of opening a demat account in any branch, while others restrict themselves to a select set of branches.
Some private banks also provide online access to the demat account. Hence, the investors can conveniently check online details of their holdings, transactions and status of requests through their bank's net-banking facility. A broker who acts as a DP may not be able to provide these services.
There are four major charges usually levied on a demat account: Charges for all fees vary from DP to DP. Depending on or may not be an opening account fee. But in Ventura Securities ltd, Angel Broking  and some other companies do not have an any opening charge.
State Bank of India does not charge any account opening charge while other maintenance and transaction charges apply. Most players levy this when re-opening a demat account. The fee is also refundable.
This is also known as folio maintenance charges, and is generally levied in advance. It is charged on annual or monthly basis. The fee also differs based on the kind of transaction buying or selling.
Some DPs charge only for debiting the securities, while others charge for both. In addition, service tax is also charged by the DPs. In addition to the other fees, the DP also charges a fee for converting the shares from the physical to the electronic form or vice versa. This fee varies for both demat physical-to-electronic and remat electronic-to-physical requests.
For demat transactions, some DPs charge a flat fee per request in addition to the variable fee per certificate, while others charge only the variable fee.