Open Demat Account

Before you open a Demat account, understanding the various types of Demat accounts is important so that you can understand your needs and consider relevant factors before selecting the most suitable 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: Since the Demat account is electronically managed and is available at your fingertips, it becomes very easy to monitor, review and modify your investment portfolio from anywhere.
• One stop storage:Users can track their investments and transactions through a single Demat Account.
• Safety and Security of assets: As the Demat account is a digital platform it reduces the risk of investment due to no fear of document loss, tampering, theft, etc.
• Elimination of odd lots: Before Demat account, buying and selling of shares had to be done in fixed quantities. But with the digital platform available for trading, traders can now buy or sell shares in the desired quantities or volumes.
• Reduced costs: Stamp duty and other handling costs are eliminated due to the digital format.
• 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.

Below are two eligibility criteria to open a Demat account:

• Age Criteria: Individuals who are 18 years or older are eligible to open a Demat account. In some cases, minors can also have a Demat account with a guardian's consent.
• KYC Compliance: Know Your Customer (KYC) compliance is mandatory. It involves providing identity proof, address proof, and photographs. Documents like Aadhar cards, PAN cards, passports, voter IDs, and utility bills are commonly accepted for KYC.

There are different charges you need to pay for using a Demat account. The actual charge will vary depending on your depository participant.

Demat Account Opening Charges

DPs charge a one-time fee when you open a Demat account. The charge covers the administrative costs of setting up the account.

Annual Maintenance Charges (AMC)

AMC is an annual fee for maintaining the Demat account. It is a recurring charge and varies among DPs. Some DPs offer lifetime free AMC for the first year or for a specified duration as part of promotional offers.

Transaction Charges

Transaction charges are incurred for every buy or sell transaction conducted through the Demat account. These charges may be based on the transaction value or the number of securities traded.

Additional Service Charges

DPs may charge fees for additional services, such as a physical account statement, SMS alerts, or email statements. These charges are usually optional and depend on the investor's preferences.

Trade in Equities & Futures and Options

Futures and Options or F&O market refers to the buying and selling of an underlying asset. An individual can participate in the equities as well as the F&O 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.

A Demat Account makes financial transactions easy and convenient. It becomes very important to analyse the best DP to open Demat account and avail all the benefits. Features of ICICI Direct’s Demat account are

Simplified buying and selling of shares

At ICICI Direct, you get the opportunity to have a 3-in-1 account and 2-in-1 account. With the 3-in-1 account, the bank account also gets linked to the Demat and trading account providing a seamless trading experience to the investors.

Accessing multiple options

A user can operate a Demat Account electronically through various devices and modes. The ICICI Direct’s Apps are designed to enhance the user experience and provide all the required information in one go.

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.

Receive dividends directly

Users can receive stock dividends and bonus issues of shares released by companies directly and safely through a ICICI Direct Demat 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 and with an efficient customer support team, the entire process becomes easier.

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. ICICI Direct facilitates the opening of a NRI Demat account effectively and efficiently.