By You may wonder, what is there to choose between Demat accounts? After all, it looks like a plain vanilla account where you can hold your shares. But it would help if you did your homework before opting for your Demat account. Here are some factors to consider before opening your Demat account. Ideally, keep your trading account and Demat account in the same place as Top Gainers.
This is no statutory requirement as you are free to have your trading account and Demat account with different brokers. It is more about your convenience. Usually, brokers open trading-cum-demat accounts together, so this should not be a real issue. The only problem is if your broker does not have a DP license. Then you must ensure that once you sell shares, you submit a debit instruction slip (DIS) to your broker on time. If the DIS gets delayed, it can lead to quick delivery and auction losses for you. This process becomes simple and seamless when your broker and DP are the same demat account app. Today, demand is about technology so check the tech specs.
Opening a Demat account is usually a 2-in-1 account, and the entire process should be seamless. It should be cost-effective and simple and ensure a smooth process. Most brokers offer you access to your trading account and Demat account through a single platform. The funding of bank account, credit to demat, debits to Demat, and credits to bank account – all happen seamlessly. The DP must have a robust technology platform that ensures the same. Focus on a DP that can deliver a tech-smart solution with the help of Top Gainers.
Compare the costs of demat with the competition.
There are various costs to a Demat account. The annual maintenance charge (AMC) is billed to you each year. This is usually based on the value of shares in custody and ranges between Rs.500 to Rs.800 per year. DPS cannot charge you for credit of shares, but each time you sell shares, and the stakes get debited from your Demat account app, the DP pays a charge to NSDL or CDSL. This charge gets passed on to you. In addition, DPs also charge you for physical statements, duplicate statements or more frequent statements of holdings/transactions. If DIS gets rejected, DP charges you a penalty. There are additional costs for dematerializing shares and when the demat request form gets denied due to technical errors. Add up all these costs for the complete picture. You must save on costs without compromising on the quality of service.
Check the service standards of the DP in the market.
A DP must be judged based on the quality of the regular and ancillary services. For example, how long does it take to get your physical shares dematerialized? Do corporate actions get credited to your Demat account automatically? How efficiently does the DP deal with issues like a pledge, lien, and customer complaints, among others? Check with other customers and the market grapevine before zeroing in on your DP with Top Gainers.
