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Open HDFC Demat Account in Simple Steps!

Updated on November 30, 2022 , 4964 views

HDFC Bank is one of the country's top Depository Participants (DP) with over 2.03 million Demat accounts and a large distribution network of over 3500 Demat centres. In 2000, HDFC Securities Limited, a subsidiary of HDFC Bank Limited, was established. HDFC Bank offers a holistic 3-in-1 account that combines a Savings Account, a Trading Account, and a Demat account, allowing you to invest in equity, derivatives, Mutual Funds, Initial Public Offerings (IPO), and fixed deposits.

When it comes to benefits, an HDFC bank Demat account is like any other Demat account. Apart from making it hassle-free, this Demat account reduces the risk of physical certificates being stolen, forgery, lost, or damages. Of course, HDFC Bank's Demat account has certain distinct advantages, but first, let's define a Demat account.

HDFC Demat Account

What is a Demat Account?

A Demat account is an electronic account that allows investors to hold shares and securities. Since March 31, 2019, the Securities and Exchange Board of India (SEBI) has prohibited the processing or transfer of physical shares of listed firms. Having a Demat account for dealing in the Indian stock Market has become mandatory.

An HDFC Bank Demat account allows an investor to purchase, trade, and transact a wide Range of products other than shares and stocks, all conveniently under one roof and from the comfort of their own home. It provides you with a secure, online, and effortless way to track your holdings. With an HDFC bank Demat account, you can lock or freeze your accounts for a set period of time. During this time, no debits from your account will be made.

Non-Resident Indians (NRIs) can also open a Demat account with HDFC bank, with or without a Portfolio Investment Scheme (PIS) account. A PIS account is a zero-balance account connected to NRI clients' NRE/ NRO accounts for the aim of acquiring funds to trade existing or new shares.

Features of HDFC Demat Account

Investors can purchase and sell securities at any time and from any location by creating a Demat account with a bank or broker that is associated with a trading account. Dematerialisation of securities is made simple since physical certificates can be converted to electronic certificates and vice versa simply by sending an order to the Depository Participant (DP).

Here are features listed below:

  • It facilitates effortless transactions by linking the accounts to ensure that the movement of funds and shares takes as little time as possible.
  • To avoid any errors, an email confirmation is provided as soon as the transaction is completed.
  • It uses 128-bit encryption technology which provides the greatest degree of security.
  • The instant proceeding is available as orders are placed electronically.
  • The Demat account is free of charge, and there is no stamp duty to pay.
  • Securities and other investments can be readily purchased and reclaimed by investors.
  • The HDFC Demat secure account allows you to save stock, funds, and ETFs.

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Why Choose Trading Account in HDFC?

  • With an HDFC Demat account, you can easily get loans against your securities.
  • If you choose to open this account, you will be able to access your account via a variety of devices.
  • Having an HDFC Securities Demat account would make the entire process of purchasing and selling stocks much more convenient.
  • It allows you to access a wide range of services from a single platform.

Demat HDFC Eligibility Criteria

Investing in the stock market requires no minimum age. Stocks are available to both minors and adults. After presenting the minor's relevant documentation, parents or designated guardians of a minor can create a Demat account with HDFC Bank in the child’s name.

The parents or guardian will be in charge of the account until the minor reaches maturity. When that happens, the depository participant will send an advisory to the concerned individual, instructing them to get specific KYC documents in order to open and transfer information to a new account.

HDFC Demat Account Opening Documents

The documents required to open an HDFC Demat and Trading account are listed below. Before registering for accounts, it's advisable to have the soft copies in hand because they'll be required to provide during the application process.

  • PAN card copy
  • Aadhar card copy
  • Cancelled cheque/ recent bank statement
  • Photo or scanned copy of signatures
  • Identification proof
  • Residence proof
  • Bank account details
  • Income proof (Only required if wish to trade in futures and options)

Additional Points to Remember

A valid ID, address proof, and PAN card are required to create a Demat account. In addition to the minimum requirement of a PAN card, you will principally need two documents. Listed are the key points to be taken into consideration.

  • As proof of income, the listed documents can be used:

  • Your aadhaar card must be linked to an active mobile phone number. This is required to finish the eSign-in process, which includes OTP verification.

  • Make sure the bank statement you're uploading has a legible account number, IFSC, and MICR code. Your application can be denied if these aren't legible.

  • Your name must be clearly written on the cheque along with the IFSC code and bank account number.

  • Signatures should be done with a pen on a blank piece of paper and should be legible. Your submission will be rejected if you use pencils, sketch pens, or markers.

  • Identification proof documents: voter's ID, passport, PAN card, a driver's licence, electricity bills, telephone bills, and ID cards with the applicant's photo issued by the central or state government.

  • Residence proof documents - Ration cards, passports, voter’s ID, driver's license, bank passbook or statement, verified copies of electricity bills, and residential telephone bills.

Demat Account HDFC Charges

When purchasing or selling stocks via HDFC Securities, the customer pays a fee (brokerage). HDFC Securities' brokerage fees for stock, commodity, and currency derivative trading are listed below.

Opening Charges

To open an HDFC Demat account, there are charges associated with the account. The table chart below provides information about HDFC Securities' account opening charges and annual maintenance charges.

Transaction Fees (INR)
Trading Account Opening Charges (One Time) 999
Trading Annual Maintenance Charges AMC (Yearly Fee) NIL
Demat Account Opening Charges (One Time) NIL
Demat Account Annual Maintenance Charges AMC (Yearly Fee) 750

Depository Service Charges

All sale transactions in your Demat Account are subject to Depository Participant (DP) charges. These charges are in addition to brokerage and are not included in contract notes. The table below lists the depository service charges levied by HDFC bank.

Basic Type Fees Min / Max
Account Opening - NIL -
Dematerialization Certificate + Dematerialisation Request Rs 5 per certificate + Rs 35 per request Rs 40 (min)
Rematerialisation Rematerialisation Request Rs 30 per request + actuals, Currently a) Rs 10 for every hundred securities or part thereof; or b) a flat fee of Rs 10 per certificate, whichever is higher Rs 40 (min) / Rs 5,00,000(max)
Annual Maintenance Charges Level 1 (up to 10 txns.) Rs 750 per annum -
Level 2 (between 11 and 25 txns.) Rs 500 per annum -
Level 3 (greater than 25 txns.) Rs 300 per annum -
Pledge Services If Pledge is marked in favour of HDFC Bank 0.02% of the value of the Txn. Rs 25 (min)
If Pledge is marked to other than HDFC Bank 0.04% of the value of the Txn. Rs 25 (min)
Debt Transaction Credit Nil -
Debit 0.04 % of the value of the txn Min. Rs 25 Max. Rs 5,000 (per txn.)
Mailing Charges for Non-Periodic statements Inland Address Rs 35 per request -
Foreign Address Rs 500 per request -

Transaction Charges

Transaction charges are constituted of the Exchange Turnover Charge and the Trade Clearing Charge. Below are the charges listed below:

Segment Transaction Fee
Equity Delivery 0.00325%
Equity Intraday 0.00325%
Equity Futures 0.00190%
Equity Options 0.050% (on premium)
Currency Futures 0.00110%
Currency Options 0.040% (on premium)
Commodity NA

Trading Taxes

In addition to the Brokerage Fee, HDFC Securities charges government Taxes and fees. These HDFC Securities trading taxes are included in the contract note that is sent to the customer at the end of the day. The following fees are listed below:

Tax Rate
Securities Transaction Tax (STT) Equity Intraday: 0.025% on the Sell Side
Equity Futures: 0.01% on Sell Side
Equity Delivery: 0.1% on both Buy and Sell
Equity Options: 0.05% on Sell Side(on Premium)
Commodity Options: 0.05% on Sell-Side
Commodity Futures: 0.01% on sell-side (Non-Agri)
On Exercise transaction: 0.125%
Right to entitlement: 0.05% on sell
Currency F&O: No STT
GST 18% on (Brokerage + Transaction Charge + SEBI Fee)
SEBI Charges 0.00005% (₹5/Crore)
Stamp Duty Delivery: 0.015%, Intraday: 0.003%, Equity Futures: 0.002%, Equity Options: 0.003%, and Currency F&O: 0.0001%. Commodity Futures: 0.002%, Commodity Options: 0.003% (MCX)

Online HDFC Demat Account Opening Process

To create an HDFC Demat account, you can either walk into the local HDFC bank branch or log in to HDFC Net Banking and fill out the Demat Request Form (DRF) and submit it with the required documents. Here is the step-by-step guide to open HDFC Demat account online:

Step-1: Visit the HDFC website and log in with online banking credentials. Then, select 'Open Demat Account' from the drop-down menu.

Step-2: Select 'Apply online' from the option.

Step-3: Fill in the required fields in the form, such as name, email, phone number, OTP sent and so on.

Step-4: Once you've finished filling out the form, check the box to authorise Agents from HDFC Securities to contact you, then press the "SUBMIT" button.

Step-5: After submitting the form, you will receive a message - "Thank you for your interest in HDFC bank Demat account" and a Call from an HDFC securities representative to verify the information.

Step-6: Once verification is done, you’ll be required to send an email with self-attested identification and residency proof documents.

Step-7: You will receive a ‘Successful HDFC Demat account opening' message on your registered mobile number after your documents have been received and verified. (Note - Verification usually takes up to 2-3 working days)

Step-8: Access your HDFC bank net banking account and verify that the Demat account has been successfully set up and linked to online banking.

Checking Demat Account Details

Account-holders with an HDFC bank can access the following information by clicking on the Demat tab on the HDFC Bank Netbanking site:

Transaction Statement for the current and previous four fiscal years, with a date range of up to one month. This can be copied in text format or downloaded as a PDF or Excel file.

Monthly Billing Statements for the previous year are available for download. Request for Delivery Instruction Booklet & Pledge / Hypothecation Forms/ Check the status of your Demat request/ View settlement calendar, view holding statements or get ISIN information with the market rate. Log on to Net Banking and go to the Demat section to use DP.

HDFC Demat Account Closure

To avoid Annual Maintenance Charges (AMC) and account misuse, you are requested to close the account (If not using the same). It can be done online or offline.

  • For offline, go to your local branch and complete the necessary paperwork and submit it. Once done, you’ll receive a confirmation SMS alert.
  • For online, you can get the Account Closing Form from the Depository Participant’s (DP) website. Fill in all required information, such as DP ID, Client ID, the reason for closing the account and so on. Then, submit it to the nearest branch.

Conclusion

HDFC Demat Account allows you to trade without limits, and you can trade far more than your trading account balance. With a minimum balance, you can open and maintain an account with one of the reputed banks. It offers Cash-n-Carry on both the NSE and the BSE, Day Trading on both the NSE and the BSE, Futures and Options Trading on the NSE, and Online IPO Investment. The HDFC Demat account is ideal for traders and comes with a slew of perks.

Frequently Asked Questions (FAQs)

1. Is there any fee to open a Demat account?

A. No, there is no fee for opening a Demat account with HDFC. However, there are various charges associated with a Demat account, such as Annual Maintenance Charges (AMC), custodian fee, trading account opening, and transaction charges.

2. In which depositories are HDFC securities listed?

A. HDFC securities are listed on both National Securities Depository Limited (NSDL) and Central Depository Services Limited (CDSL).

3. Is the IPO available through HDFC securities?

A. Yes, customers of HDFC securities can apply for IPOs online.

4. What is HDFC Securities' AMC?

A. A trading account with HDFC Securities costs Rs 0 per year, whereas a Demat account costs Rs 750.

5. Is margin funding available for stock/commodity trading at HDFC Securities?

A. No, margin funding is not offered by HDFC Securities.

6. What is the auto square-off timing for HDFC Securities intraday?

A. At 3:30 p.m., all open intraday positions at HDFC Securities are auto squared off.

7. Is it possible to transfer my shares to a new Demat account?

A. Yes, you can transfer your shares from an old Demat account to a new one. For this, you need to fill the Delivery Instruction Slip (DIS) and send it to your new Demat account issuer authority.

8. What is the procedure for retrieving a new user ID and password?

A. When HDFC Bank creates your Demat account, you will receive a user ID along with full account information. The password and TIN will be emailed to you separately.

9. How long does it take to receive the payout of funds or securities?

A. Once the exchange receives the funds or securities, the payout is credited within a Business Day. As a standard practice, the payout is done within T+2 business days.

10. Is there any charge associated with closing an HDFC securities Demat account?

A. No, the HDFC securities Demat account doesn’t charge any closing fee.

Disclaimer:
All efforts have been made to ensure the information provided here is accurate. However, no guarantees are made regarding correctness of data. Please verify with scheme information document before making any investment.
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