What is the Minimum Amount Required for Opening a Demat Account?

There is no fixed required minimum amount to open a Demat account, since different depository participants (DPs) or brokers charge different amounts for this. However, some of them do not charge a single fee for account opening.

Knowing the charges while opening a Demat account might help you avoid unpleasant surprises down the road. This blog provides an in-depth analysis of the Demat account minimum balance.

What are the Demat Account Opening Charges?

In earlier times, opening a Demat account required paying up to INR 1000. However, the practice of overcharging starting fees has been reduced to a small amount due to the growth of stock trading and significant demand.

As a result, each broker may charge you various broking fees based on the DPs you choose. Some brokers offer a free Demat account opening procedure to make well-informed trading.

For instance, you can download the PL Capital Group – Prabhudas Lilladher application and open a Demat account for free.

What are the Charges Involved in a Demat Account?

Apart from the account opening charges, let us have a look at other crucial charges involved if you open a Demat account with PL Capital:

• Annual Maintenance Charges

The yearly maintenance fees you have to pay the broker to keep your Demat account active are known as the annual maintenance charges (AMC). PL Capital levies INR 300 to INR 800, depending on the scheme.

• Transaction Charges

The transaction charges refer to the expense you incur when selling a financial asset from your assets. Each broker has a different transaction fee. PL charges INR 25 to INR 75 per transaction based on the scheme type.

• Dematerialisation Fees

Converting your physical shares into an electronic format requires payment. Only individuals who have physical shares and decide to transfer them into Demat form are subject to these costs; other account holders are not. PL charges a minimum of INR 5 per certificate to a maximum of INR 50 per Demat request form (DRF) plus courier charges.

• Rematerialisation Fees

Rematerialisation charges are the fees you need to pay to convert your electronic securities into physical format. PL levies INR 10 per certificate or INR 10 per 100 shares, whichever is higher. However, for government securities, PL charges no fees.

Eligibility Criteria to Open a Demat Account

Let us have a look at the eligibility criteria for opening an online Demat account:

• Age Requirement

To begin with, there is no minimum age requirement to participate in trading. The idea that you must be at least eighteen to create a Demat account is untrue.

• PAN and Aadhaar

You need your PAN and Aadhar cards to complete your KYC.

• Depository

Either of the two Indian depositories, the Central Depository Services Limited (CDSL) or the National Securities Depository Limited (NSDL), may hold your Demat account.

How to Open a Demat Account?

Follow the steps below to open a Demat account with PL Capital:

Step 1: App Download and Account Setup

From any app store, download the PL Capital app. Open the app and select ‘Profile’ from the ‘Account’ section.

Step 2: Enter Details

Fill in the necessary field with your email address and mobile number. For verification, enter the two OTPs that you received via email and mobile number.

Step 3: Complete Your KYC

For instant e-KYC, enter your PAN and name according to your PAN card. Use the OTP verification that was sent to your Aadhaar-linked mobile number to confirm your Aadhaar number.

Step 4: Access to Digilocker

Your Demat account will be opened once you grant access to your Digilocker.

Final Thoughts

Opening a Demat account is no longer expensive, and the process is also straightforward. However, there is no fixed Demat account minimum balance since it varies depending on each broker.

Some brokers also allow Demat account opening for free. One of them is PL Capital. PL also provides you with market research with data-driven analysis.

Frequently Asked Questions

1. Is it free to open a Demat account in India?

Yes, you can open a Demat account for free in India, since a lot of brokers provide this benefit.

2. What is the minimum amount for the Demat account opening process?

There is no fixed amount required for the Demat account opening process since it may vary depending on each broker. However, some brokers also charge zero fees to open a Demat account.

3. Do Demat accounts charge any hidden fees?

Indeed, Demat accounts have several fees that can appear ‘hidden’ because they are frequently small or triggered by particular actions like selling shares or requesting physical statements. These fees include DP charges, pledging fees, and failed transaction charges. However, the Securities and Exchange Board of India (SEBI) requires transparency and brokers to disclose charges.

4. Is it possible to open a Demat account with no initial investment?

Yes, opening a Demat account can be free, but you have to choose a broker who offers this facility.