Benefits to Open an Online Demat Account with Religare Broking

Religare Broking provides you a wide range of investment products across all asset classes with state of the art trading platforms i.e. Religare Dynami and Religare Online to help you start your investment journey.

  • Attractive offers on account opening
  • Zero AMC charges
  • Free Research Notifications
  • Multiple Brokerage plans to choose from
  • Trade via Mobile, Web or Desktop terminal

How Demat Account Works in India?

NSDL operates under NSE and CDSL operates under BSE. A depository is similar to a bank where securities are held in an electronic form.

When investors buy shares, their respective broker credits them from the investor’s account accordingly and an investor can view their holdings online or in the holding statement.

When an investor needs to sell shares, he/she needs to give a delivery instruction note in which details of shares sold are filled, to their respective broker. The account is debited and the investor is paid for the shares being sold. In the case of online trading, the account will spontaneously reflect the stocks sold and the amount credited to the account.

Eligibility & Documents Required to Open a Demat Account

There is no minimum age to start investing in the stock market – you do not need to be 18 years of age to hold a demat account. A minor can also hold a demat account, given it is open by the parents or the appointed guardian after submitting their respective documents. Once he/she turns 18 years of age, the depository participant will send an advisory to the individual in order to obtain certain KYC (Know Your Client) documents to open and transfer details to a new account.

PAN Card is the most important document required to open a demat account. You will have to submit a copy of your PAN card along with other KYC documents while opening a demat account. You can choose to open your demat account either online or offline.

In order to be eligible to open a demat account, you will need to submit other documents in addition to you PAN card for identification purposes –

● Aadhar card
● Bank proof – copy of passbook/bank statement
● Signature (same as PAN card)

What Is a Demat Account?

A Demat Account is an account that allows investors to hold their shares in an electronic form. The abbreviation of a Demat Account is Dematerialisation Account. To open a free Demat account online, you need to upload few documents. A Demat account number is compulsory to enable electronic settlements of all the trades.

A Demat account is similar to a bank account, where you hold your money and respective transaction entries are done in the bank’s passbook. Similarly, securities are held in electronic form and are debited or credited accordingly from a Demat Account. A Demat account can be opened with zero balance of shares.

Benefits of Demat Account

Easy Accessible Trades

A convenient way to hold securities where you can easily access (buy/sell) information anytime, anywhere through net banking via computer, smartphone or any other smart device. The USP here stands that a single Demat account can hold both equity and debt investments.

Less Paperwork

A Demat account is much secure and safer than paper- shares and also reduces paperwork for the transfer of securities. Also, the risks associated with physical documents such as delays, theft or face securities can all be avoided.

Easy and Instant Transactions

Demat accounts reduce the time-consuming process of receiving dividends, interests or funds, something which is all auto-credited into the account. Be it stock splits, bonus issues or public issues, it’s all very convenient to update the investor’s account.

Safe and Secure

Transfer of securities is done by DP (Depository Participant), eliminating the need to notify companies. Facilitates automatic credit into De-mat account for shares arising out of bonus/split, consolidation/merger, etc. A specific type or quantity of share can be frozen by the account holder which can stop the inflow or outflow of the money for a specific period of time as per the holder’s requirement.

Features of Demat Account

Online Trading is convenient

You can easily trade through multiple platforms: Web, mobile and Call & Trade service.

Investors can track their investments anytime

Trades are easily accessible; investors can buy and sell securities at any time and anywhere

Investors are able to review all of their options instead of depending on a broker

All the facts and methods to follow a task are stated online and in some simple and user-friendly ways.

Faster and Secure Transactions

A point where physical transfers would take one month or so which has become simplified with a cost-effective method as there are no more stamp duties on transfer of securities.

Hassle-free trading experience

You can easily trade through multiple platforms: Web, mobile and Call & Trade service that lets you have hassle-free and convenient handling.

Frequently Asked Questions

Who can open a Demat account?
Any individual who is a resident of India and 18 years old or above is eligible for opening a demat & trading account, provided he/she has a PAN card. After verifying your details, your process of opening a demat account begins.
How long does it take to open a demat account?
If you are opting for online KYC, your demat account will be activated in less than 24 hours. However, if you opt to open your demat account by submitting physical documents, it will take 2-3 days for your demat account to be active.
Can I open a demat account online?
Yes, you can open a demat account online. You have to choose a brokerage firm, submit demat account opening form, submit required documents and complete e-KYC in order to open a demat account online.
Is demat account free?
Yes, you can open a demat account free of cost. However, you will have to pay brokerage in case you wish to make any trades.
Can I have two demat accounts?
Yes, you can have multiple demat accounts. However, you cannot open multiple demat accounts with the same stockbroker.
What is the cost of opening a demat account?
A demat account can be opened free of cost. However, one has to pay a nominal annual fee or account maintenance charge to the stockbroker in order to keep your account active.
Does demat account charges monthly?
No, you don’t have to any charges on your demat account on a monthly basis. However, one has to pay a nominal annual fee or account maintenance charge to the stockbroker in order to keep your account active.
Do I have to pay income tax on demat account?
You will have to pay income tax on the gains you have made by selling your shares that you hold in your demat account. Long-term capital gains (LTCG) over Rs 1 lakh on listed equity shares per financial year are taxable at the rate of 10% without the benefit of indexation. STCG covered under section 111A is charged to tax @ 15% (plus surcharge and cess as applicable).
Is tax automatically deducted when selling shares?
A rate of 15% will be charged as income tax on short-term capital gain on shares that fall under this category. They would further attract surcharge and cess where ever applicable.
How much income from shares is tax free?
If you treat your income as capital gains, expenses incurred on such transfer are allowed for deduction. Also, long-term gains from equity above Rs 1 lakh annually are taxable, while short term gains are taxed at 15%.
How can I avoid demat charges?
While you cannot avoid demat charges, you can certainly minimized your demat charges if you open a demat account with a broker who offers discount brokerage plans.
Is tax automatically deducted from demat account?
No, tax is not automatically deducted from the demat account. Deduction is made available for individuals under Section 80C of the Income Tax Act and you need to duly file the taxes annually.
Can I withdraw all money from demat account?
Yes, you can withdraw all money from your demat account and credit it to your linked bank account in maximum 3 working days.
What is the maximum balance in demat account?
There is no limit on the number of shares that you can hold in your demat account. You can hold any number and value of securities in your demat account.

How to Open an Online Demat Account with Religare Broking

Fill up your personal details via our secured online account opening platform.

Fill up your DOB, PAN, personal and bank details, upload your documents.

E-sign your application via Aadhaar OTP. You are done!