Demat Account

A dematerialized or demat account is a facility that allows investors to hold shares in an electronic format. This is similar to a bank account, where you keep your money. In this case, a demat account holds the certificates of your financial instruments like shares, bonds, government securities, mutual funds and exchange traded funds (ETFs).

You need a demat account before you start to trade on India’s stock exchanges.

What does Kotak Securities offer?

At Kotak Securities, you can open both demat as well as trading accounts either independently or at the same time. This is called a two-in-one account.

Kotak Securities also offers a three-in-one account – demat, trading as well as a bank account, together with Kotak Mahindra Bank Limited. This means, you won’t have to open three accounts separately, but instead do so with a single application form. Also, you won’t have to manually transfer money to your trading account from your bank account. The required funds get credited automatically.

How to open a Demat Account with Kotak Securities

Kotak Securities is a depository participant – the intermediary between CDSL and NSDL, and you. It is very easy to open a demat account with Kotak. Here are the key things that you require:

  • Filled application form for opening demat

  • Passport size Photographs

  • Proof of identity (Driving Licence, Voter's Id, Aadhar Card)

  • Proof of address(Passport, Driving Licence, Voter's Id, Aadhar Card)

  • Copy of PAN card

  • Signup and reap the benefits of Super Multiple Open a Trading Account

Why Demat Account?
  • Mandatory by SEBI
  • Easy Portfolio Management
  • Security of Equity Investments.
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4 Reasons Why you need a Demat?

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What are the benefits?

Account Charges:

Several charges apply while operating the demat account. These are transparent and you (the account holder) must know these upfront. We mention below the exact charges along with the attendant conditions, so that there is complete clarity.

Sr.No. Account head Rate Minimum payable
1 Dematerialisation Rs.50/- per request and
Rs.3/- per certificate
--
2 Rematerialisation Rs.10/- for 100 shares Rs. 15/-
3 Debit transactions
- On market 
- Off market
0.04% of the value of securities 
(plus NSDL charges as applicable)
Rs.27/- 
(plus NSDL charges as applicable)
4 Account maintenance charges
- Resident Indian
- NRI

Rs. 50/- per month
Rs. 75/- per month
--
5 Pledge charge 0.05% of the value of securities Rs. 30/-
6 Invocation of pledge 0.04% of the value of securities Rs. 30/-
7 Charge for client master change intimation Rs.25/- --
More on charges +
  • You do not have to pay any charges at the time of account opening. All other charges billed on a monthly basis
  • In case of delays in the payment of charges, the demat_account account could be frozen for all operations. Please refer clause VIII mentioned in the agreement signed by you.
  • "All market instructions for transfer must be received latest by 4.00 p.m. on the previous working day prior to the pay in day as per SEBI Guidelines. All off market instructions for transfer must be received atleast 24 hours before the execution date. Late instructions would be accepted at the account holder's sole risk and responsibility".
  • Charges are subject to revision at the company's sole discretion and as per revisions in NSDL charges.
  • Any service not quoted above will be charged separately.
  • Value of transaction will be in accordance with rates provided by the Depository or actual transaction value, whichever is higher.
  • Service tax and other statutory charges if applicable will be levied separately.
  • Quarterly statements of transaction may not be sent to the clients, if there is no transactions and no securities balance in the account. Annual Maintenance Charges will NOT be levied in such cases.
  • In accordance with the SEBI circular (Ref # SEBI Circular No. CIR/MRD/DP/22/2012 dated August 27, 2012) effective from 1st October 2012 all Sole or First Holders of a demat_account account having value of securities not exceeding Rupees Two Lakhs are eligible and have an option to avail Basic Services Demat Account (BSDA), As per the said SEBI circular, for availing BSDA facility, the individual shall have only one BSDA in his/her name across all depositories for availing this facility a request letter in the prescribed format (available at you nearest Kotak Securities branch) can be submitted with the account opening form. Also an existing individual client who is eligible to convert his Demat account into BSDA can do so by submitting the request letter in this regard. In case the BSDA account holder converts such account into Non-BSDA (regular account) account or the account holder ceases to meet the eligibility criteria for BSDA account, the charges applicable to Non-BSDA (regular account) shall be levied.
  • For demat_account accounts having NIL transactions during the year, statement of holding will be sent only once in a year w.e.f. 1st October 2012

Signup and reap the benefits.Open a Demat Account

More reading on Demat

When the Bombay Stock Exchange, the oldest in Asia, was founded in 1875, it was an open outcry floor trading exchange. This means traders would buy or sell stocks by verbally shouting prices on an open floor. Today, it is vastly different. It is an electronic system where you buy or sell stocks online.

Similarly, earlier, shares were physical receipts. On buying shares, you got a certificate. Over the years, people thought stock market trading was not for them because of the sheer paperwork involved in completing a transaction. Stock market settlements, wherein you receive shares if you buy or money if you sell them, were longer. In 1996, trading began on NSE for shares held in demat_account form. It was the beginning of a new paperless trading stock market trading environment. If you buy a share today, it gets credited to your account in two days. Today, shares get transferred to your demat_account account.

You cannot trade in the stock market without a demat_account account.Create a Demat Account Today

Here are some things to know about demat_account:

 

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