Don’t worry if you want to open a DEMAT account in India, but is not aware of the procedure for the same. Opening and maintaining an account is quite easy, and doesn’t need you to be an expert to operate it. The applicant can download the relevant form from the respective website and submit it to the concerned branch that offered the form. Ensure that you fill in all the details as mentioned, or else it might get rejected. Also you can visit the branch of the service provider and fill in the form with the help of an expert. There are some banks, financial institutes, and brokers who allow their clients to open the account for free. However they might charge a nominal amount for the services they render. It is necessary that you go through the process and understand the fees structure well, as no one would want to get any ugly surprises, in the form of unwanted charges.
The fees usually depend upon the volume of trading activities you indulge into. The more you trade, large will be the charges. You can also hold or purchase bonds and maintain them through the DEMAT account. It is called as Bond rate card. The account opening is categorized into the following two types like –
- Resident non-corporate account opening form
- Resident corporate account opening form
These terms are quite important to be understood, as they will help you in opening the right type of account. If you are a non resident of the country, and still want to trade in shares, securities, and other activities then it is mandatory to open a Repatriable DEMAT account. In this case the trader needs to open a separate account, which is also called as NRE or Non-resident account. This account keeps a track of the money that you fund in or out of the country. Unless a trader opens this account he or she cannot trade or indulge into any trading activities.
The other type of account is non-repatriable account, which needs to be operated within the country. In other words, you can use it to trade internationally and is called NRO account. The proceeds from the sales or profit from this account cannot be transferred to another country at all. It is quite important to understand this difference, before you think about opening an account.
Through these accounts you can indulge into different types of trading activities, which is required for improving your financial portfolio. PINS or portfolio investment scheme is the best option for non resident Indians. Such schemes are recognized by the Reserve Bank of India. Through this account the trader can purchase and sell any shares that are recognized by the reputed stock exchange of the country.
DEMAT account in India also allows the trader to trade in Non-PINS accounts like mutual funds, investment in derivatives, subscription to primary market offerings, and gifts and inheritance. You can get all the required information about such trading activities by visiting one of the reputed and well known websites that has listed down all the details in the best possible manner.