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HDFC Demat Account Charges – Know Everything Important!

Updated on September 28, 2023 , 16752 views

HDFC Bank is one of the country's ruling Depository Participants. With over millions of Demat accounts and a vast distribution network of Demat centres, it is winning hearts because of the service and perks it provides. In 2000, HDFC Securities Limited was founded.

It provides a comprehensive 3-in-1 account that includes a Savings Account, a Trading Account, and a Demat account, allowing you to trade in stocks, derivatives, Mutual Funds, Initial Public Offerings (IPOs), and fixed deposits.

HDFC Demat Account Charges

HDFC Bank Demat account is similar to any other Demat account in terms of features and benefits. This Demat account eliminates the possibility of physical certificates being stolen, forged, lost, or damaged, in addition to making it more convenient. In this article, you’ll get to know everything related to HDFC demat account.

HDFC Demat Account: An Overview

A Demat account is an account to hold shares and securities in electronic form. The Securities and Exchange Board of India (SEBI) has made it illegal to process or transfer physical shares of listed companies after March 31, 2019.

You must need a Demat Account to trade in the Indian stock Market. With an HDFC bank Demat account, you can buy, sell, and trade a variety of products other than stocks and shares with ease. It gives you a safe and secure online way to keep track of your holdings. Also, you can lock or freeze your accounts for a predetermined time period. There will be no debits from your account at this time.

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

Types of Demat Accounts

Demat accounts are online accounts that hold securities in electronic or dematerialized form. Despite the fact that the objective of a Demat account is the same for all investors, different types of Demat accounts exist for different investors. Learn about the different sorts of HDFC Demat accounts and why they're classified that way.

  • Regular Demat Account: It is a normal Demat account for investors who live in India. The account is suitable for people who wish to deal only in shares.

  • Basic Services Demat Account (BSDA): This account is ideal for small investors who can’t invest regularly. It offers basic services to investors at economic rates.

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Features of HDFC Demat Account

By opening a Demat account with a bank or broker that is linked to a trading account, investors can buy and sell securities at any time and from any location. Physical certificates can be changed to electronic certificates and vice versa simply by placing an order to the Depository Participant (DP), making the dematerialization of securities simple.

The following are some of the features of this bank’s Demat account:

  • The accounts are linked to providing simple and trouble-free transactions and ensure that the development of funds and share takes place smoothly while saving time.
  • The security is provided by 128-bit encryption technology, which is counted as one of the considerable degrees of security.
  • As orders are placed electronically, the process is quick.
  • Securities and other investments can be easily purchased and sold by investors.
  • As soon as the transaction is completed, an email is provided to confirm it.
  • The Demat account doesn't require any stamp duty for paying as it is free of charge.

Benefits of HDFC Demat Account

Electronic book entries are used in the Depository System to record the ownership and transfer of securities. Demat account is used in the same way as a bank account, Offering the following benefits:

  • Getting a loan against your securities is easy when you have an HDFC Demat account.
  • Opening this account gives you access to operate your account through a variety of devices.
  • Buying and selling of stocks are much more convenient through the HDFC Securities Demat account.
  • The process becomes hassle-free and convenient.
  • It provides comfortable access to reach a wide Range of services through a single platform.

Documents Required

For opening a Demat account with HDFC bank, the required documents are listed below. For the application process, soft copies are required before registering for accounts.

  • A copy of PAN Card
  • Original copy of Aadhar card
  • Latest bank statement or Cancelled cheque
  • Photo or scanned copy of signatures
  • Identity proof
  • Proof of residence
  • Account details
  • Proof of Income (In case you wish to trade in the future and options)

Furthermore, to create a Demat account, you need the following:

  • A valid ID
  • Address proof
  • Pan card

Note: You will require two documents in addition to the minimum requirement of a PAN card.

Key Points to Consider

For the proof of income, below is the list of the documents:

  • Form-16

  • Recent 6-months bank statement

  • Recent salary slip

  • Networth certificate from a CA Income Tax Return Acknowledgement

    • Make sure that your aadhaar card is linked to an active number so that the eSign-in process gets completed through OTP verification.

    • Ensure that the bank statement you're uploading has a legible account number, IFSC, and MICR code. If these are not legible, then your application can be denied.

    • On the cheque, your name and IFSC code, and bank account number should be written clearly.

    • Please provide signatures with a pen and write them on a blank piece of paper. It should be neatly written.

    • Writing with pencils, sketch pens, or markers will reject your submission.

    • Documents for Identity proof include voter ID, PAN card, license, passport, electricity bill, telephone bill and ID cards issued by a state or central government bearing the applicant's photo in it.

    • Documents for residence proof include voter ID, PAN card, license, ration card, bank passbook or statement, electricity bill, residential telephone bill.

HDFC Bank Demat Account Charges

While buying or selling stocks via HDFC securities, the customer needs to pay a fee (brokerage). Below is the list of HDFC Securities.

1. HDFC Bank Demat Account Opening Charges

For opening an HDFC Demat account, there are charges to be paid. HDFC Demat account opening charges and HDFC AMC charges are listed below:

Transaction Fees
HDFC Demat Account Opening Charges 0
Demat account AMC Rs. 750
Trading Account Opening Charges (One Time) Rs. 999
Trading Annual Maintenance Charges AMC (Yearly Fee) 0

2. Depository Charges HDFC

Every sale transaction through your Demat account is subject to DP charges. These charges come under brokerage.

Here is the table listing the depository charges levied by the bank.

Basic Type Fees Min/Max
Conversion from electronic form to physical form Request for conversion 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). The minimum amount is Rs. 40, and the maximum amount is Rs. 5 lakhs
Dematerialization Certificate + Dematerialisation Request Rs. 5 per certificate + Rs. 35 per request Minimum amount is Rs. 40
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

Charges for Transaction are constituted of the Trade Clearing Charge and the Exchange Turnover Charge.

Below are the charges:

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

Trading Taxes

In addition to the Brokerage Fee, HDFC charges government Taxes and fees to its users. The contract note that is shared with the customer contains the HDFC Securities trading taxes.

The following fees are listed below:

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

Account Opening Process

To create an HDFC Demat account, you have the choice to choose your preferred way. Either you can visit the HDFC bank branch, or you can log in through net banking and fill out the Demat Request Form (DRF) and then submit it with the needed documents. For opening an HDFC Demat account online, here is the guide:

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

  • Step 2: From the given options, select 'Apply online'.

  • Step 3: Fill the form that contains name, email, phone number, OTP, and so on.

  • Step 4: After the completion, check the box to authorize Agents from HDFC Securities to contact you, then click on the 'Submit' button.

  • Step 5: You will receive a message once you have submitted the form. The message contains - 'Thank you for your interest in HDFC bank Demat account' and a Call from HDFC securities representative to verify and confirm the given information.

  • Step 6: After verification, you need to share an email with self-attested identification and residency proof documents.

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

  • Step - 8: Check your HDFC bank net banking account to verify if the Demat account is successfully set up and if it is linked to online banking.

The Bottom Line

Participation in the Indian stock markets necessitates opening a Demat account. The procedure for creating a normal Demat account for a native Indian is pretty straightforward. It's possible to do it through a broker of one's choosing. The regulations are different for NRIs, though.

HDFC Demat account provides an enthralling offer to trade more than your account balance. It gives a great opportunity to create and maintain an account with a minimum balance with an established bank. The HDFC Demat account gives access to varied perks.

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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