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What is a Demat Account?

A Demat Account holds shares and securities electronically or in a dematerialised form. It is an easy and convenient way of holding assets such as shares, Exchange-Traded Funds [ETFs], government securities and bonds.

A Demat Account allows for quick, secure and convenient transactions for buying and selling shares and other securities. With a Demat Account, shares or other financial instruments can be easily accessed and all activities can be instantly checked by simply logging into the account anytime. A Demat Account is connected with a trading account to simplify stock market transactions.

What is Dematerialisation?

Dematerialisation is a proper form of keeping record online in demat account and is designed to offer enhanced protection and increased speed for buying and selling in an electronic form.

A Demat Account enables the electronic transaction of shares and securities to be bought and sold through the process of Dematerialisation. Financial transactions involving stocks and other securities of the investor are held in the Demat Account as a means for convenient and hassle-free trades.

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Margin Funding interest rate to buy stocks
9.65% P.A.

Margin Funding interest rate to buy stocks

Intraday Trading Brokerage Charges
₹20

Intraday Trading Brokerage Charges (Unlimited per order)

Features Of ICICI Direct Demat Account

A Demat Account makes financial transactions easy and convenient - features of Demat Account include.

Simplified buying and selling of shares

Simplified buying and selling of shares

A Demat Account helps in buying and selling shares online. Formerly, transferring shares physically would take anywhere between a fortnight to a month. A Demat Account ensures a simplified process with reduced costs. Besides, holding securities in the electronic form does not require stamp duty when transferring them.

Transfer securities electronically

Transfer securities electronically

With a Demat Account, users can transfer securities online in seconds. Delivery Instruction Slips [DIS] are used to transfer securities from one Demat Account electronically.

Loans on your securities

Loans on securities

When choosing an online Demat Account opening, users benefit from taking a loan on their securities. Pledging securities held in the online Demat Account as collateral can help obtain necessary funds when needed.

Receive dividends directly

Receive dividends directly

Users can receive stock dividends and bonus issues of shares released by companies directly and safely through a Demat Account.

Quicker dematerialization and rematerialization

Quicker Dematerialisation and rematerialisation

Upon providing instructions to the DP, users can convert physical certificates into electronic forms whenever needed. Certificates can also be converted into physical form if required through rematerialisation.

Option to freeze the account

Option to freeze the account

A Demat Account can be suspended for a specific period whenever needed. This feature comes in handy when users avoid unexpected debits or credits into their Demat Account. Users can also opt to freeze their Demat Account for a specific number of securities in the account.

Accessing multiple options

Accessing multiple options

A user can operate a Demat Account electronically through various devices and modes. A Demat Account can be accessed via a computer, laptop, and other smart devices through the Internet.

Easy access to the Indian stock market

Easy access to the Indian stock market

Non-Resident Indians can also open a Demat Account and invest in shares in the Indian stock market through their NRE or NRO bank account.

Features and benefits of a Demat account

Invest in various financial products: Besides stocks, Demat account allows you to invest in various other financial products too like Futures and Options, Commodity, Currency, Bonds, Exchange Traded Funds (ETFs), Mutual Funds,etc.

Easy Portfolio Monitoring: Demat account also comes in handy to monitor, review and modify your investment portfolio easily from anywhere.

One stop storage: Users can track their investments and transactions through a single Demat Account.

Swift settlements: A Demat Account reduces settlement cycles, thus saving users time and effort.

Safety and Security of assets: There is no fear of loss, theft or damage to the stocks and securities owing to the Demat Account's digital format.

Elimination of odd lots: Buying and selling of single units are possible with a Demat Account.

Reduced costs: Stamp duty and other handling costs are eliminated due to the digital format.

Easy liquidation and monetization: A Demat Account offers easy liquidation of assets.

Effortless KYC Updating: Users can easily update any change in address, mobile number or nominee details via a single Demat Account.

Easy transmission: A joint Demat Account can add a next-of-kin as a nominee to effortlessly transfer assets.

Auto transfer of corporate benefits: Get automatic update of corporate actions such as dividends, bonus issues, right shares or stock splits in the Demat account.

Remain Informed: Get all the latest news, analysis, stocks and company information to remain informed in the market and take the right decisions.

Things to know before opening a Demat Account

Account opening eligibility

The following investors are eligible to open a Demat Account:

  • Any resident Indian with a PAN can open an account.
  • Hindu Undivided Family (HUF) can open a Demat account. The account will be opened in the name of the leader or the eldest male member of the family.
  • Non-Indian Residents (NRI) can also participate in the Indian financial markets by opening a Demat Account. The investor has to specifically inform the DP that it is NRI Account.
  • Domestic companies are also eligible to open an account.

Account opening charges

There are various charges associated with a Demat Account, which are as follows:

  • Account opening charge – It is the fee a depository participant (DP) levies on you to open a Demat account. The charges vary from DP to DP.
  • Annual maintenance charge – You are required to pay an annual maintenance charge as long you hold the Demat Account with the DP. You are liable to pay this charge irrespective of whether you use the account or not.
  • Dematerialisation charge – You must pay a specific charge to convert your physical share certificates into the electronic or dematerialized format. This fee is known as the Dematerialisation charge.

Multiple Account Holding

  • If you are wondering if it is possible to have more than one Demat Account, then the answer is yes. There is no restriction to the number of Demat Accounts you can open as long as they are opened with different DPs. Every account should be linked to your PAN card as per the mandatory Know Your Customer (KYC) requirement. You have the option to assign a nominee to your account.

List of Documents Required to Open a Demat Account

To open a Demat Account requires specific documents. Below is a complete checklist of documents to open a Demat Account.

  1. PAN Card

    It is mandatory to enter correct PAN details in the account opening journey. Image of PAN Card required only if PAN verification fails.

  2. Signature

    Sign on a white paper and upload its picture. Ensure that your signature matches the one on your PAN card.

  3. Proof of bank account

    As proof of your bank account enter correct IFSC code and bank account number. Image of a cancelled cheque or your bank statement/passbook for the last six months required only if Bank verification fails.

  4. Financial document

    To trade in derivatives such as F&O, you need to submit the soft copy of the Income Tax Return (ITR) statement, salary slips for three months, bank statement for six months, net-worth certificate, Demat holding statement, or holding report. This is optional and not mandatory.

Various Investment Options with Demat Account

Trade in Equities & Derivatives

Derivative market refers to the buying and selling of an underlying asset. An individual can participate in the equities as well as the derivatives market by opening a demat account. The demat account helps traders hold shares and other securities.

Invest in Mutual Funds

A mutual fund is a financial instrument which pools in money from several investors to purchase a diversified portfolio. Systematic investment plan (SIP) and lump sump are the two ways to invest in a mutual fund. With the help of an ICICI Direct demat account, one can invest in a SIP with just one click.

Invest in Exchange Traded Funds (ETFs)

An exchange traded fund invests in multiple underlying assets rather than just one. Investors receive an interest for putting their money in the fund. A demat account holder can opt for this basket index fund.

Trade in Commodities

The commodity market deals in raw products rather than manufactured products. It involves buying and selling of goods such as crude oil, gold, coffee, silver, and so on. In order to trade in the commodity market a demat account is required along with a commodity trading account.

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Demat Account FAQs

To open your demat account, it typically takes 2 to 5 working days — depending on the kind of account.

After submitting your demat account application form, the Depository Participant [DP] will carry out the necessary verification of the information you provided in the form. On successful verification, you will be provided with your login details. In the event that your application is not processed, due to any missing information, you will be notified by our representative.

Yes. You need to link the two accounts for seamless and hassle free transactions.

A joint demat account is one a primary account holder can hold the same account another holder. In a joint demat account account, there can be a maximum of three account holders, with one primary holder. However, a joint demat account cannot be opened with a minor.

Yes. You can open a demat account without a trading account. To convert your physical shareholdings and hold them into the dematerialized format, a demat account works as a repository that does not require a trading account.

Yes. You can open multiple demat accounts as long as you open them with different Depository Participants [DP]. That means, you cannot open more than one demat account through the same depositary participant.

As part of a three and one account, you get the combination and benefits of a savings bank account, trading account and the demat account. All these three are linked to one another for seamless online investments and trading in the stock market.

Typically, there are three different types of demat accounts: a regular Demat Account, Repatriable Demat Account and Non-Repatriable Demat Account.

ICICI Securities Ltd. ( I-Sec). Registered office of I-Sec is at ICICI Securities Ltd. - ICICI Centre, H. T. Parekh Marg, Churchgate, Mumbai - 400020, India, Tel No : 022 - 2288 2460, 022 - 2288 2470. AMFI Regn. No.: ARN-0845. PFRDA registration numbers:  POP no -05092018. I-Sec acts as a Composite Corporate agent having registration number –CA0113. Investments in securities market are subject to market risks, read all the related documents carefully before investing.Mutual Fund Investments are subject to market risks, read all scheme related documents carefully. Please note, Mutual Fund, Corporate Fixed Deposits, Bonds, IPO and Loans related services are not Exchange traded products and I-Sec is acting as a distributor to solicit these products. All disputes with respect to the distribution activity, would not have access to Exchange investor redressal forum or Arbitration mechanism. Please note, Insurance related services are not Exchange traded products and I-Sec is acting as a corporate agent to solicit these products. The contents herein above shall not be considered as an invitation or persuasion to trade or invest.  I-Sec and affiliates accept no liabilities for any loss or damage of any kind arising out of any actions taken in reliance thereon. The contents herein mentioned are solely for informational and educational purpose.