Demat is an abbreviated word for dematerialisation, a process of converting physical shares into an electronic format. A Demat Account is an account that allows investors to hold shares and securities in an electronic format. Also, it can hold other investments an individual make, be it mutual funds, bonds, government securities, exchange-traded funds etc. In the case of ICICI, it offers you a three-in-one Demat account which is seamlessly linked to your trading and bank accounts. Linked to the trading account, ICICI Demat account allows the investor to buy and sell as well as transact a whole lot of products, other than shares and stocks, easily, quickly and without any paperwork and all conveniently under one roof, and within the comforts of your home. You can also keep on earning 3.5% interest on the allocated unutilised amount for trading.
The Demat Account opening charges with ICICI is NIL, and the annual service charges for the first year are waived off. ICICI Demat account also offers you a safe, online mode to keep track of your investments. You can prevent unauthorised transactions in your Demat account by updating your mobile number with your Depository Participant (ICICI). This will also help you receive alerts on your registered mobile for all debit and other important transactions involving your Demat account.
How does ICICI Demat account work?
Securities and Exchange Board of India (SEBI) has made Demat account mandatory since April 2019, if you are going to take delivery of shares. No investor will be able to transfer the shares held in physical form using a transfer deed. With ICICI, you will get a three-in-one account which has the benefits of a Demat Account, a linked Online Trading Account and a bank account. Seamlessly linked to your trading and bank accounts, your ICICI Demat account allows you to manage your online trading account, as well as savings, account on a single platform, allowing you to save on time and energy. When you buy shares, they get automatically transferred into your Demat account immediately without any complications. There is no risk of loss involved, and you don’t have to carry it anywhere. All you need is to remember is your login ID and password of your linked trading account. When you place a 'buy' or 'sell' request for a particular stock, your Depository Participant (ICICI in this case) forwards it to the Depository (stock exchange) immediately. A Depository is like a bank where securities are held in electronic form. There are two Depositories in India – National Securities Depository Ltd (NSDL) and Central Depository Services (India) Ltd (CDSL).
Facilities offered by ICICI
ICICI offers a full-service 3-in-1 trading account which has the convenience of operating a Demat, trading & bank account under one platform. Trading in Shares, Futures & Options, Currencies, investing in Mutual Funds, IPOs and Life Insurance can be carried out through ICICI Demat account seamlessly and securely. Other facilities include:
Easy conversion: ICICI Demat account facilitates easy dematerialisation and dematerialisation of shares, quick share transfer and management, corporate benefits like automatic electronic transfer of dividends and interest.
Freeze if for a period: With ICICI Demat account, you can keep your accounts locked or frozen for a specific period you desire. No debits from your account will be made during this period.
24x7 account info: You can also access your Demat account 24x7 via a telephone /mobile from any of the access centres and get information regarding transaction details, holding details, balance inquiry, statement, overdue, rejection details etc.
Multiple platforms: With ICICI Demat account, one can access its trading platform and carry out transactions as per your convenience using the internet, telecall, branches or through mobile trading apps, so as to not to miss out on market opportunities.
No forgery risk: Other than the easy and convenient holding of shares, ICICI Demat account eliminates the risk of theft, forgery, loss and damage of physical certificates.
Advisory services: ICICI Bank’s Demat account advisory services are categorised based on risk, return and time horizon of investments. With over 200 companies covered across multiple sectors, ICICI covers the depth and width of the market.
Customer service: ICICI service can be availed at the click of a mouse. The bank’s expert will call you for any assistance concerning queries on your trading account at your convenience. What you get is access to a dedicated call centre which is operational from 8:30 a.m. to 6:00 p.m.
Statements via e-mail: With ICICI Demat accounts you can receive a statement by e-mail. A monthly statement will be sent to your e-mail id when there are transactions in your account. Also, you will receive an annual demat account statement which will help you in the filing of income tax returns (ITR).
E-instructions: An ICICI demat account holder can transfer securities 24x7 via Internet & Interactive Voice Response (IVR) at a minimal cost. With ICICI’s ‘Speak to transfer’ facility, the account holder can also pledge or transfer instructions through the bank’s customer care officer.
Brokerage plans offered by ICICI
ICICI offers three types of brokerage plans to its customers depending upon their requirements:
I-Secure Plan (Flat brokerage Plan): This plan offers Flat Brokerage (in percentage) irrespective of the turnover value. This plan is suitable for traders/ investors looking at a secured and fixed brokerage.
I-Saver Plan (Variable brokerage plan): This plan offers brokerage based on the trading volume i.e. high brokerage for low volume and low brokerage for high volume trades. This plan suitable for traders/ investors who trade in high volumes and can benefit from the low brokerage.
ICICI Prime Plan: ICICI Securities launched ICICI Prime plan for its customers. The plan will help the bank’s customers to reduce their brokerage and also get money instantly in their bank account when selling shares in BSE. ICICI Prime Plan also offers exclusive research for prime members.
Features & benefits of ICICI Demat account
3.5% interest on your holding money: With ICICI demat account, your money never lies idle. It gives you interest that too when it is parked in a trading account. Even as you manage your online trading account, as well as savings, account on a single platform, you keep on earning 3.5% interest on the allocated unutilised amount parked in your trading account.
Rs 20K free brokerage: Being an ICICI Demat account holder you can buy or sell shares worth Rs 44 lakh without paying brokerage in the equity cash market.
Zero charges for demat account opening: One can open a demat account which is seamlessly linked to your trading and bank accounts. Demat Account opening charges with ICICI Bank are free. Moreover, the bank has waived off annual service charges for the first year too.
Variety range of products: An ICICI demat account holder can trade in shares both on NSE and BSE, Futures & Options, Currencies and invest in Mutual Funds, IPOs and Life Insurance through the Bank’s online trading platform. One can also avail leverage plans like Margin & Margin PLUS schemes.
All-inclusive low brokerage: Brokerage charges with ICICI include DP charges of a maximum of 0.04 per cent or ₹ 25 every time shares are debited from your demat account. This is commonly charged by brokers and not by ICICI . One can also choose from the various pricing schemes, tailored to investors’ trading habits and enjoy lower brokerage options.
Equity ATM instant money feature: eATM or Equity ATM, is a revolutionary feature that lets one receive money into your bank account at the very moment of selling of shares. One can get up to Rs 5 crore credited to his/her bank account in half an hour on sale of over 600 BSE costs. All without incurring any extra charges.
All-in-one storage facility: One can store Mutual Funds, Equity, Initial Public Offer (IPO), Bonds, Exchange Traded Funds (ETF) - Index & Gold, Non-Convertible Debentures (NCD) as well in ICICI Demat accounts. With the help of ECS, the rights, bonuses and public issues get automatically credited in the Demat account of the account holder.
Eligibility criteria for opening Demat account with ICICI
Regardless of one’s age, a Demat account can be opened with ICICI, which will help you to trade and invest in the stock exchange. You will have to be prepared with your PAN card, ID and address proof and will have to fill out a KYC (Know Your Customer) form. Once the Bank verifies and okays your documents, it will execute the process of opening a demat account, which in the case of ICICI will double up as your trading as well as a bank account. For opening a demat account with ICICI Bank or to invest in stocks market there is no minimum age involved. You don’t have to attain adulthood either.
How to go about it: A Demat account with ICICI can be opened in a minor’s name by the parents or his/her appointed guardian/s after submitting their respective documents. Until the minor attains adulthood, it will be the parents or the guardian/s who will be in charge of the account. Once the minor turns 18, the depository participant or DP (in this case the ICICI) will send an advisory to the individual concerned to obtain certain KYC documents to open and transfer details to a new account.
Documents required to open a Demat a/c with ICICI
To open an ICICI Demat account, you need to walk into the nearest branch of ICICI or login into ICICI Net Banking and fill up the Demat request form and submit it along with the necessary documents such as Address proof, Permanent Account Number (PAN) card, and two passport-sized colour photographs. Also, as per ICICI Bank’s policy, you will be required to maintain the required Minimum Average Balance (MAB) in your Savings Account.
PAN card: A PAN card is mandatory for one to start a Demat account with ICICI or with any other broker. You will have to submit a copy of your PAN card along with the KYC documents when opening the account. In addition to your PAN card, you must provide a few more documents for identification and address proof along with your latest photographs. You must carry original documents for verification in case you are visiting the ICICI branch. However, only photocopies of the documents are required for submission. The documents you will have to carry or furnish online are:
Proof of Address: One can submit ration card, voter ID card, a driver’s licence, passport, a bank passbook or bank statement, verified copies of electricity bills, or even residence telephone bills as address proof.
Proof of identification: Documents that can be submitted for identification purpose are voter’s ID card, PAN card, passport, driver's licence, electricity bills, telephone bills, or ID cards with applicant's photo issued by the Central or state government.
Bank a/c details: One needs to submit bank account details of the beneficiary while opening a Demat account. A cancelled cheque where you have an existing account can be submitted.
Income proof: One will have to submit proof of income for trading in derivatives such as F&O. A copy of acknowledgement on the filing of Income Tax Returns will be enough in this case.
Photographs: Keep 1-3 passport size photographs at hand if you are visiting an ICICI Bank branch for opening a Demat account.
Fees & charges of ICICI Demat account
Banks and brokers (DPs) charge different fees for different segments which can be confusing at times. While opening a Demat account, in addition to the opening fees and the annual maintenance fee, the transaction charges are most critical, because it can vary from broker to broker. The key charges for opening Demat account with ICICI is as follows.
Account opening: There are no account opening charges with ICICI Bank Demat Services for both Regular Account as well as Basic Services Demat Account (BSDA).
Annual Maintenance charges (AMC): For Regular Account charges will be Rs 700. For BSDA accounts, it will be free for equity holding value up to 50 per cent and Rs 100 for up to Rs 2 lakh. Above that tariff of regular account will come into play. In the case of debt securities, it will be zero charges up to Rs 1 lakh.
Buy -- Market & Off-market: Zero charges for trades done at www.icici.com for both Regular Account holders as well as BSDA account holders.
Sell -- Market & Off-market: 0.04% of the value of securities (Minimum of Rs 30 and max Rs 25,000) for Regular Account holders and 0.06% or a minimum of Rs 35 and maximum of Rs 25,000).
How to open an ICICI Demat account
You can open a demat account with ICICI Bank online by following these steps:
Step 1: Visit ICICI site www.icici.com
Click on 'Apply Online - Resident Account' under the "Open an Account" Section.
Select the type of account that you want to open. Duly fill in the complete details. You can also create your own User ID (which would be case sensitive) and password at the time of registration. Click on ‘submit’ once you have filled in all the details.
You can note the ARN that you would receive while applying online. You will need to mention the ARN on the physical application so that the Bank can allot you the same User ID and Password as chosen by you.
The Bank’s executive will visit you within two working days of the submission of the form to complete the other account opening formalities.
You just have to keep the below documents handy by the time of visit of Bank’s executive.
Two photographs of the applicant & one photograph of the nominee.
PAN card copy (original for verification and xerox copy for submitting with the form).
Address proof (Direct original for verification and xerox copy for submitting with the form)
You can also open ICICI Demat physically by downloading the account opening forms from the ICICI Bank site and submit them at the bank’s branches offering Demat services. Then you can proceed to one of the bank’s branches offering Demat service for opening the Demat Account. There is no fee for opening a DP account with ICICI Bank. However, a nominal fee towards services is levied as per the bank’s Standard Rate Card.
How to check ICICI Demat account details
You can view your ICICI Bank Demat Account online on ICICIBank.com. All you need to do is to link your demat account to your existing Internet banking user ID. You can enter the demat section either by clicking on the demat account link on My Accounts page, or by clicking the Demat tab in the top menu. By default, your holding for the account appearing on the top in My Accounts page will be displayed. In addition to this and links available in non-logged in section you can also view:
Transaction Statement: You can view the transaction in your account for a period of 15 days. Various filters are available in transaction statement for quick results. You can view transactions for Specific Date Range, Specific ISIN, Specific Account Type, Specific Transaction type etc.
Personal Details: You can view various client-related information like Client Name, Client Address, Joint Holders name, Account Type, Bank Account Details for a given client id.
Status of Request: You can also view status of your transactions by using Status of Requests.
Settlement Calendar: Informs you about pay-in and pay-out date for a settlement on all the exchanges electronically connected to NSDL. The facility keeps you updated on settlement cycle & delivery cycle for a given settlement.
How can I open a Demat account with ICICI?
ICICI offers you one of the simplest ways to open a Demat account. You can either open an ICICI Demat account via Netbanking or ly visit the Bank branch. In case you are not an existing ICICI bank customer, you can approach the ICICI bank branch with a cheque book and all original copies of the relevant documents. You will also need to fill the account opening form and KYC form available at the bank branch.
Who all can open a Demat/trading account with ICICI Securities?
Any Indian resident or non-resident individual (not US-based) or Indian corporate can register with ICICI Securities for trading. Currently, overseas corporate bodies (OCBs) cannot open an account with ICICI. To become a registered user of ICICI securities, you will have to first open a savings/current account and Demat account with ICICI.
Should I be buying shares to keep a Demat Account?
Demat account is an online account that facilities the investors to hold their shares in electronic form. Shares or stocks in the Demat account are dematerialized. To buy and sell shares online you will require Demat account number which functions just like a bank account, where you have money and respective debit and credit entries are noted in bank passbook. The Demat account does not have any minimum requirement on a number of shares, you may even have zero shares in your Demat account.
Can I start trading once my account is activated?
Yes, you may, provided you have the funds in your bank account or stocks with your depository participant.
Can I have two Demat accounts?
Yes, you can have multiple Demat accounts of different banks or stockbroking companies. But you cannot open two Demat accounts from one bank or stockbroking company.
Can I transfer my shares to a new Demat account?
Yes, you can transfer your shares from your old Demat account to a new Demat account. You have to fill the DIS (Delivery instruction slip) and submit it to your new Demat account issuer authority.
Can I open a Demat account online?
Yes, many banks, including ICICI, and stockbroking companies provide online service to open the Demat account online by logging on to their websites. You need to submit a duly filled account opening form and KYC form. Along with this, you will need to attach copies of PAN Card, Residence Proof, ID Proof, and passport-sized photographs.
If I have forgotten my password, what should I do?
One can generate the password online or contact customer care by sending a request to reset your password, following which a new password will be sent to you.
How do I get my user ID and password?
The user ID will be sent to you once ICICI opens your Demat account, along with all the account details. The password and TIN will be dispatched to you separately by a secured mail.
When can I receive the payout of funds/ securities?
Payout of funds/ securities is credited within a business day post receipt of the funds/ securities from the exchange. As an internal practice, we try and effect the payout in T+2 business days
What should I do to close my Demat account?
There are certain things which you need to do before proceeding to close a Demat account. First of all, you need to sell off all your shares or transfer it to your new Demat account. Secondly, you need to clear any negative balance you have before closing your Demat account. Then you can fill up and submit the account closure form. This is available on your bank’s or stockbroker website or you can ly visit the branch and fill the form.
How long will it take to close a Demat account?
The closing process of a Demat account differs from companies to companies. However, it should not take more than seven to 10 working days to close a Demat account.