In this article, you will find all information about the Standard Chartered Demat account.
Before we begin, let's understand what a Demat account is. If you look at the history of stock trading in India, the transfer of shares included a lot of paperwork. For each share that was traded, a physical certificate had to be created. The demat system was created in 1996 to improve this highly inefficient process.
A Demat account stands for dematerialization account and allows us to hold the investments in an electronic format. It acts similar to a bank for holding investments such as shares, bonds, securities, etc. It is currently compulsory to open a Demat account to trade in the stock markets such as NSE and BSE.
Account Opening Charges | Rs.310 |
---|---|
Demat AMC (Annual Maintenance Charges) | Rs.310 per Annum |
Trading AMC (Annual Maintenance Charges) | Free |
Depository | CDSL & NSDL |
Standard Chartered charges an account opening fee of Rs.310 in general for opening a Demat and a trading account. Please note that account opening charges can differ depending on the asset class. A Demat account is technically different from a trading account. Many people don't quite understand the difference. Standard Chartered Demat account holds the investments, while the trading account enables you to buy and sell shares. So, a Demat account is almost always accompanied by a trading account. Some banks provide a 3 in 1 account, a combo of a savings account, trading account, and Demat account.
The other import charge related to the Standard Chartered Demat account is the Demat AMC charge. Demat AMC charge refers to the annual maintenance charge that you need to pay for maintenances of the Demat account. Standard Chartered charges Rs.310 per Annum as Demat AMC charge.
A trading AMC charge is a separate charge from a Demat account AMC charge and refers to the annual maintenance charge you pay to maintain your trading account at Standard Chartered. Standard Chartered charges Free as trading AMC charge.
Standard Chartered Demat account is maintained at CDSL & NSDL. By depository, we mean a financial institution that holds your certificates and securities. Standard Chartered is a depository participant, or in other words, an agent of the depository. Standard Chartered charges Demat AMC from you and pays it back to the depository source.
Standard Chartered Demat account can be one of the three types
Standard Chartered charges Rs.310 for trading and Demat account opening. There seems to be confusion regarding Demat account opening charges. A depository participant such as Standard Chartered combines both the Demat account and trading account charges into a single charge called account opening charge. Even if the Demat account is free, you need to pay a small amount to open a trading and Demat account together in Standard Chartered.
Standard Chartered Demat account requires documents such as an Aadhaar card, pan card for identity proof. You also need to submit documents for address proof and income proof. So it's good to keep documents such as bank statements, a canceled cheque ready. Apart from documents, you might need to provide passport size photographs.
Yes, the Aadhaar card is one of the most important documents which serves as identity proof for Standard Chartered Demat account. You might need to sign the Aadhaar card digitally.
Yes, a pan card is mandatory for opening Standard Chartered Demat account. SEBI enforces this. Whether you plan for a small or big investment, you are bound to provide a pan card for opening Standard Chartered Demat account.