Demat account has a very important role in the financial market of India. This is the electronic account that is needed to open for participating in the stock market. Different financial companies offer Demat accounts to people interested in making profitable investments in the money market of the country. So it is essential for them to know a few useful tips for choosing the best Demat account in India.
Simplicity in opening Demat account
Though the Securities and Exchange Board of India (SEBI) has introduced a general procedure to open Demat account, many financial companies have made this process simpler for their customers. Now, due to the digital trend of investment, some companies offer to open Demat accounts by creating e-KYC of investors. You can fulfil the verification of this account online with the help of the Aadhaar card details of account holders. Your self-identification can be done online through a webcam or you may personally visit the office of the chosen financial company.
Cost-effective maintenance of Demat account
The account holder needs to spend a certain amount of money for the maintenance of his Demat account; even it remains in idle mode. Hence, you need to check this annual maintenance charge billed by the financial company, where you want to open your Demat account. Moreover, there are other expenses regarding a Demat account, which you need to check before opening it. Whenever a debit is made from your account, you need to pay for it that will be added to your annual maintenance bill. Every company charges differently for your Demat requests for every certificate. If your Demat request form or Demat instruction slip is rejected, you need to pay a definite amount for it.
Easy interaction of banking and broking systems
Several financial groups operate both banking and broking systems. So they can offer simple transaction processes between the banking and broking accounts of customers. It will be easier for you to handle money transactions between your trading accounts and Demat account, paying the least cost for money transfers. You need to check the smoothness of money transactions between your different accounts before opening a Demat account.
Response time on different services of a Demat account
It is best to open a Demat account after checking various related factors for financial security. You need to find out the time taken by the depository participants (DP) in solving the dematerialization of shares in the stock market. You may check online or ask your acquaintances to know the usual service quality offered by the DP. You should know the normal time needed for each credit and debit from a Demat account. Moreover, you must check if there was any previous complaint lodged with SEBI about this DP or financial company before you open Demat account with them.
All these factors may help you to find the best Demat account in India and you will be able to make satisfactory profits from your Demat account.