One of the leading banks in the country, HDFC Bank offers demat account services to its customers. An HDFC Bank demat account is similar to other demat accounts when it comes to features and benefits. Of course, there are some unique features to HDFC Bank’s demat account, but before we get to that let’s understand what a demat account is.
A Demat Account is an account that allows investors to hold shares and securities in an electronic format. Demat is an abbreviated word for dematerialisation (the process of converting physical shares into an electronic format). The Demat account remains in dematerialised form. With SEBI disallowing processing or transfer of physical shares of listed companies since March 31, 2019, having a Demat account for trading in share market in India has become mandatory. Also, a Demat Account can hold all the investments an individual make, including mutual funds, bonds, shares, government securities, exchange-traded funds etc. For instance, HDFC Bank Demat Services 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. HDFC Bank Demat account offers you a safe, online and seamless 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 (HDFC Bank Ltd). This will also help you receive alerts on your registered mobile for all debit and other important transactions involving your Demat account.
How does HDFC Demat account work?
The working of a Demat Account is dependent on two other accounts: Your trading account, which is different from a Demat Account as its only role is to hold money for trading purposes, and your bank account, which is linked to the Demat & Trading accounts. With HDFC Bank, you will get a three-in-one account which has the benefits of a Demat Account, Savings Account and a linked Online Trading Account with a unique login ID and password.
A Demat account is mandatory if you are going to take delivery of shares. 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 your login ID and password of your linked trading account.
When a 'buy' or 'sell' request is put in the trading account for a particular stock, with other details, your Depository Participant (DP, in this case, HDFC Bank) then forwards this 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).
Also, if there is any corporate action like a bonus, split etc. in stocks in which you have invested, shares will get directly credited to your Demat account.
Facilities offered by HDFC Bank
With over 2.03 million Demat Accounts and a wide distribution network of more than 3500+ Demat centres, HDFC BANK is one of the leading Depository Participants (DP) in the country. HDFC Bank offers a full-service 3-in-1 account, a combination of saving bank, trading and Demat account, which allows you to invest in Equity, Derivatives, Mutual Funds, IPO and Fixed Deposits as well. Other than the easy and convenient holding of shares, HDFC Bank Demat account eliminates the risk of theft, forgery, loss and damage of physical certificates.
With HDFC Bank, you can avail a waiver on the annual charges of Rs 750/- for the first year. From the second year onwards, more your transactions the less your annual charges will be. Non-Resident Indians (NRIs) can also avail Demat facility along with/ without a Portfolio Investment Scheme (PIS) account. A PIS account is a zero-balance account which is linked to NRI clients' NRE/ NRO accounts for availing funds for the trading of existing or new shares.
With HDFC Bank Demat account, you can transact as per your convenience using the internet, telecall, branches or through
mobile trading apps (for Android, iPhone, iPad).
HDFC Bank Demat account facilitates easy dematerialisation and rematerialisation of shares, quick share transfer and management, corporate benefits like automatic electronic transfer of dividends and interest. Such cash benefits will be forwarded to you directly and not through the depository. It also gives you the option of pledging your electronic shares to avail a loan. The Next Generation Trading & Investments Platform and tool on HDFC website has Advanced Portfolio tracker, Research Assist Watchlist, Customised stock alert features for easy and convenient Trading.
With HDFC Bank Demat account. you can also keep your accounts locked or frozen for the desired period. No debits from your account will be made during this period. 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.
Types of Demat account
Demat (or dematerialised) accounts are online accounts which hold the securities like shares, bonds, etc. in an electronic form. Though the purpose of the Demat account remains the same for all the investors, essentially there are different types of Demat accounts based on the investors’ requirements. With HDFC Bank you will find two kinds of Demat accounts: BSDA or Basic Services Demat Account and Normal Demat Account.
Basic Services Demat Account (BSDA): Unlike Normal Demat Account, this one offers limited services to investors at lower costs. A BSDA Demat account is mainly intended for small investors who don't or can't invest regularly in stocks, bonds, ETFs etc. A criterion for BSDA is that you need to have only one single Demat account i.e the BSDA needs to be your only Demat account across all depositories. SEBI (Securities and Exchange Board of India) felt that the majority of Demat account holders don’t really use their accounts as much as they should or for multiple purposes and are still ending up paying high maintenance fees. So, to help out such investors it came up with this account type. The Annual Maintenance Charges (AMC) structure for BSDA Demat accounts shall be on a slab basis on the value of the holding, which shall be determined by the DPs (HDFC Bank in this case) based on the daily closing price or NAV of the securities or units of mutual funds. If the value of holding in such BSDA Demat account exceeds the prescribed criteria at any date, the DPs may levy charges as applicable to regular accounts (non-BSDA) from that date onwards.
Features & benefits of HDFC Demat account
-HDFC Bank Demat Services offers you a safe, online and seamless experience while keeping track of your investments.
-Zero charges for Demat Account opening with HDFC Bank Ltd
-Annual Demat account maintenance charges of Rs 750/- waived off for the first year
-No stamp duty required for transfer of securities held in Demat account
-Settlement of securities traded on exchanges & off-market transactions
-Shorter the settlement, the greater the liquidity with HDFC Demat services
-Changing address, signature, registering a power of attorney can be affected in Demat a/c
-(One just need to submit requests along with the relevant documents to HDFC Bank)
-SPEED-e / Easiest website to facilitate NSDL, CDSL registration. This ensures security when processing transactions, without the hassle of preparing and submitting instruction slips.
-'IDEAS' & 'Easi' facilities allow you to view the current transactions and balances of your Demat account in real-time.
-Investors can electronically purchase and redeem securities, mutual funds, and other investments
-No need to issue cheques by investors while subscribing to IPO. You just need to write the bank account number and sign in the application form to authorise your bank to make payment.
-One can store Equity, Mutual Funds, Initial Public Offer (IPO), Exchange Traded Funds (ETF) - Index & Gold, Bonds, Non-Convertible Debentures (NCD) as well in HDFC Demat accounts
-With the help of ECS, the rights, bonuses and public issues get automatically credited in the Demat account of the account holder.
-Through net banking, one can go through holding cum valuation statement and also transaction cum billing statement without any hassle
Eligibility criteria for opening Demat account with HDFC Bank
Anyone regardless of his/her age can open an HDFC Demat account to begin trading and investing in stock markets. One needs to submit PAN card, ID and address proofs and will have to fill out a KYC form. Your brokerage verifies your documents and executes the process of opening an account. A client ID is generated after the process which can then be used. Here are some of the points you can take note of if you want to be part of the country’s growth story.
-Many people are under the impression that only adults can open a Demat account. It’s not right. You don’t need to be 18 to get started. There is no minimum age to invest in the stock market. Both a minor and an adult can invest in stocks.
-A Demat account with HDFC Bank can also 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 (DP; in this case the HDFC Bank) will send an advisory to the individual concerned to obtain certain KYC (Know Your Client) documents to open and transfer details to a new account.
Documents required to open a Demat a/c with HDFC Bank
To open an HDFC Demat account, you need to walk into the nearest branch of HDFC Bank or login into HDFC NetBanking and fill up the DRF (Demat request form) and submit it along with the necessary documents. A PAN card is mandatory for one to start a Demat account with HDFC Bank. 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 HDFC branch, though only photocopies of the documents are required for submission. The documents you will have to carry or furnish online are:
-Proof of identification (POI): A voter’s ID card, a passport, a PAN card, a driver's licence, electricity bills, telephone bills, ID cards with applicant's photo issued by the Central or state government are a few documents which can be submitted as proof of identification.
-Proof of Address (POA): Ration card, passport, a voter ID card, a driver’s licence, a bank passbook or bank statement, verified copies of electricity bills, residence telephone bills are a few of the documents which can be submitted for address proof.
-Bank account 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. With HDFC Bank, you can open a three-in-one account which integrates the benefits of a Demat Account, Savings Account & an Online Trading Account.
-You will also 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. You will also have to submit 1 to 3 passport size photographs for opening a Demat account.
Fees & charges of HDFC Demat account
Most brokers charge different fees for different segments which can be quite confusing 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. Some of the brokers / DPs offer some concessions. For instance, HDFC Bank has waived off the account opening charges as well as maintenance charges on your Demat account for the first year. It also offers a flat fee rate for other transactions, and lets you know about it. This helps you focus on trading rather than worrying about the transaction costs and calculating the same. Here is a look at the fees and charges offered by the HDFC Bank.
-Demat account opening charges: NIL
-Annual maintenance charges (AMC): NIL for the first year
-Debit transactions on equity, mutual funds:
0.04% of the value of the transaction or Rs 20 minimum for Regular Demat account
0.06% of the value of the transaction or Rs 40 minimum for Basic Services Demat Account (BSDA)
-Credit transactions: NIL
-Dematerialisation: Rs 5 per certificate + Rs 35 per request
-Demat account transaction charges are monthly and include NSDL and CDSL charges.
-All charges are debited from the authorised Savings or Current Account.
How to open an HDFC Bank Demat account
You can open HDFC Demat account online within the comforts of your home by following these three simple steps:
Step 1: Log in to your HDFC net banking URL and browse for the ‘Demat’ tab. You will find it at the top right corner. Click on the tab and you will find the options before you. Click on the ‘Apply Online’ option which is listed on top and the ‘Demat account opening form’ will open on your screen.
Step 2: Once the ‘Demat account opening form’ is loaded you will have to fill all the mandatory fields which are marked with red*. After filling in the form, you will have to click on the checkbox to authorise ‘HDFC securities representatives to call you’ and then click on the ‘SUBMIT’ button.
Step 3: Once your form is successfully submitted you will see the message displayed in the below screenshot ‘Thank you for your interest in HDFC bank Demat account’. Consequently, within two working days, the HDFC securities representative will call you to verify the details provided by you. Once the information is verified, you will have to send an email to the HDFC representative with the below-mentioned document attached.
Proof of Identify: PAN Card (Self-attested) &
Proof of Residence: Aadhaar card (Self-attested) / Passport (Self-attested) / Driving license (Self-attested)
On verification of your documents (normally within three working days), you will get a ‘Successful HDFC Demat account opening’ message on your registered mobile number.
You may now log in to your HDFC Bank net banking and see that the Demat account is successfully created and linked to your Internet banking.
How to check HDFC Demat account details
By clicking on to the Demat tab on HDFC Bank Netbanking site, account holders with an HDFC Bank site one can view the following:
Transaction Statement for the current and past 4 financial years with a date range up to 12 months. This can be copied in text or downloaded in PDF or Excel formats.
Download option for Monthly Billing Statements for last 1 year / On-line request for issuance of Delivery Instruction Booklet & Pledge / Hypothecation Forms / View the status of Demat requests / Get ISIN details with the market rate / View their settlement calendar / View holding statements / To use DP on Net just log on to NetBanking and click on the Demat section.
FAQs
What is 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.
How can I open a Demat account with HDFC Bank?
Depository participant or DP is an authorised Bank, Stockbroker company or a Financial Institution with whom you can open a Demat account. HDFC Bank offers you one of the simplest ways to open a Demat account. You can either open an HDFC Demat account via Netbanking or directly visit the Bank branch. In case you are not an existing HDFC bank customer, you can approach the HDFC 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 HDFC Securities?
Any Indian resident or non-resident individual (not US-based) or Indian corporate can register with HDFC Securities for trading. Currently, overseas corporate bodies (OCBs) cannot open an account with HDFC. To become a registered user of HDFC securities, you will have to first open a savings/current account and Demat account with HDFC Bank.
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.
How does a Demat account with HDFC Bank work?
The working of a Demat Account is dependent on two other accounts. Firstly, your trading account, which is different from a Demat Account as the latter's only role is to hold money for trading purposes. Secondly, your bank account which is linked to the Demat & Trading accounts. You have to transfer money to your trading account from this bank account to buy and sell, the money is received in the same bank account. Login to your trading account, which is also linked to your bank account. When a ‘buy’ or ‘sell’ request is put in the trading account for a particular stock, with other details, your DP (HDFC Bank) then forwards this to the stock exchange immediately.
Can I open a Demat account online?
Yes, many banks, including HDFC Bank, 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.
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.
How can I 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 directly visit the branch and fill the form.
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 HDFC Bank 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
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.
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