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Open Free Demat Account in just 5 minutes
One Account, Many Benefits
₹ 0 Account opening charges
₹ 20 order for carry forward F&O trades and Brokerage on intraday trades
Margin Trading Facility
FAQS ON DEMAT ACCOUNT
What is a Demat Account?
A Demat Account or Dematerialised Account provides the facility of holding shares and securities in an electronic format. During online trading, shares are bought and held in a Demat Account, thus, facilitating easy trade for the users. A Demat Account holds all the investments an individual makes in shares, government securities, exchange-traded funds, bonds and mutual funds in one place.
What are the benefits & uses of a demat account?
A Demat account helps keep your equity investments, your mutual fund units, bonds, and other financial assets safe and secure in an online electronic environment. With a Demat and trading account, you can not only invest in upcoming IPOs of companies but also start a mutual fund, digital gold and SIP as well.
Here’s a quick look at some of the other uses of a Demat account:
• Enables easy and quick share transfers.
• Highly secure storage with zero risk.
• Can be accessed at any time from anywhere through the internet.
• Very less paperwork involved.
Who can open a Demat Account?
Any individual resident of India, HUF, NRI, proprietary firm, partnership firm or company can open a Demat and trading account with Motilal Oswal.
What are the documents required to open a demat account?
The different types of documents required for opening a Demat account are:
1. Proof of Identity (POI) (Eg.: Driving license)
2. Proof of Address (POA) (Eg.: Passport)
3. Proof of Income (For trading in derivatives such as F&O) (Eg.: Copy of ITR Acknowledgement)
4. Proof of Bank Account (Eg.: Cancelled cheque)
5. PAN Card
6. Passport size photographs
What is the difference between a Demat Account and a Trading Account?
One significant difference between the two accounts is the function they perform. A trading account is used for the buying and selling of securities. With every trade request, the securities are debited or credit from the Demat account accordingly. A Demat account stores your stock holdings electronically, which is linked to their trading account. While one is required to facilitate the exchange of transactions, the other enables the safe-holding of the assets in a dematerialised format. However, both of them are necessary to have while trading in the stock market.
What is the minimum amount required to open a demat account?
There’s absolutely no requirement of having to put up a minimum amount for demat account opening. You can open a demat account with us for free!
Can I open two/multiple demat accounts?
There are no restrictions on the number of demat accounts that a user can hold. When considering opening multiple Demat accounts, there are a few key factors to keep in mind:
1. It is legal to have two or more demat accounts, however, they must not be with the same Depository Participant or Broker.
2. Each individual Demat account will levy individual charges as is expected of each account such as opening charges and annual maintenance charges which will be charged even if there are no transactions being conducted through the account.
3. Having multiple Demat Accounts can be useful if you are an active trader or investor as. having multiple Demat Accounts or trading accounts helps in segregating the investment portfolio.
4. Unused Demat accounts can be frozen and require the KYC details to be redone in order to reactivate the account, hence be aware not to leave the account idle.
What is a Collateral Amount in Demat Account?
A collateral amount is a form of loan against shares offered by a broker to their clients for trading in stock and shares. In simpler words, it is providing shares in your Demat account as collateral to increase your trading limits.
Collateral in the Demat account is beneficial for both a client and the broker. Investors (Demat account holders) can use their idle shares in their Demat account which they do not intend to sell in the near future as collateral with their broker. This enables them to obtain a margin against their financial assets lying idle in their Demat account instead of cash to increase their trading limits. The broker charges an agreed upon rate of interest for this service.
Can a demat account be opened in the name of Joint Holders?
Yes, a demat account can be opened in single or joint names. However, a demat account can have a maximum of three account holders - 1 main holder and 2 joint holders.
Can an NRI open a demat account in India?
Of course. It is certainly possible to open a Demat account for NRIs. But to do so, you will have to possess either an NRO or NRE bank account and submit a Portfolio Investment Scheme letter of approval from the Reserve Bank of India along with your Demat account application form and other supporting documents.
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