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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.
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.
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:
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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.
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.
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.
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.
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.
|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|
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|
|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)|
|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 are constituted of the Exchange Turnover Charge and the Trade Clearing Charge. Below are the charges listed below:
|Equity Options||0.050% (on premium)|
|Currency Options||0.040% (on premium)|
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:
|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)|
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.
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.
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.
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.
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.
A. HDFC securities are listed on both National Securities Depository Limited (NSDL) and Central Depository Services Limited (CDSL).
A. Yes, customers of HDFC securities can apply for IPOs online.
A. A trading account with HDFC Securities costs Rs 0 per year, whereas a Demat account costs Rs 750.
A. No, margin funding is not offered by HDFC Securities.
A. At 3:30 p.m., all open intraday positions at HDFC Securities are auto squared off.
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.
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.
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.
A. No, the HDFC securities Demat account doesn’t charge any closing fee.
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