Know Important Details About HDFC Demat Account
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Demat account is the account from which the account holder purchases and sells shares! The entire account of the purchase and sale of shares is available in the account holder’s account! Demat account is fully dematerialized account! Dematerialized means electronic cache, such as transfer of funds to a shopkeeper using a debit card, that money is called electronic cash. HDFC bank gives the many facilities to Demat bank account. Let’s know every detail about HDFC Demat account. See below…
What Is HDFC Demat Account?
The Demat account works like a bank account. Here too, only the passbook of the bank balance can be entered, you can not keep it in physical form, its protection is also electronic, and it is credited as a debit to the bank account. HDFC Demat Account provides you a safe, seamless and online mode to keep a record of all your investment.
HDFC Demat Account also gives facility of Non-Convertible Debentures or NCD, Bonds, Exchange Traded Funds (ETF) – Index & Gold, Initial Public Offer or IPO, Mutual Funds and Equity.
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Facilities Of HDFC Demat Account?
Safety:
Your shares and debentures are safe in the Demat account as chances of thefts, loss or damage are eliminated as securities are held in an electronic form.
Costs:
Lower transaction costs
Accessibility:
Buy/sell securities from a computer, cellphone, iPad and other smart devices anytime, anywhere.
Speed:
Since buying and selling take place online, the process is much faster as compared to availing securities in the physical form.
Convenience:
Holding physical shares can sometimes become a tedious job. With Demat account; it is easy to hold shares. Also, it is much convenient for an investor to track his investments through a single account.
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How It Works?
When you buy a stock, the broker credits the stock with the Demat account and it appears in your holdings details. If you do business with an internet-based platform, you can view your holdings online. In particular, the broker shares the shares on T + 2, which is trading day + 2 days later. When you sell shares, you have to give delivery instructions to your broker, in which you have to fill in the details in the stock sold. The stock gets debited in your account and you pay the money for the shares sold. If you pay from the internet, the debit of shares and the amount of credit appear in your account automatically. There are two depositories in India – National Securities Depository Limited (NSDL) and Central Depository Services Limited (CDSL), by which shares are held by various Depository Participants.
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Features Of HDFC Demat Account?
- HDFC Demat Account does not need account opening charges.
- Waiver on the first year Asset Management Company.
- Preferential pricing for the Preferred, Imperia & Classic customers.
Documents Required For Opening An HDFC Demat Account?
- Pan Card
- Passport size photos
- Residential address certificate
- identity card
- Bank account number
- Identity card documents
- Passport
- Voter identity card
- driving license
- Pan Card (with Photo)
- Identity card (with photo) issued by Central / State Government or their departments
- Identity card issued with constitutional or regulatory authority (with photo)
- Identity card (with photo) issued by any public sector undertaking (PSU).
- Identity card issued with a listed business bank (with photo)
- Identity card issued by a public sector unit (with photo)
- Identity card (with photo) issued by any college (if applicants are students)
Documents Required For Residential Address:
- Ration card
- Passport
- Voter identity card
- Driving license
- Bank passport
- Certified bill of electricity bill/telephone bill (not more than two months old)
- Central / State Government issued ID (with postal address)
- Identity card issued with constitutional or regulatory authority (with photo)
- Identity card issued by any Public Sector Undertaking (PSU) (with photo)
- Identity card issued with a listed business bank (with photo)
- Identity card issued by a public sector unit (with photo)
- Identity card (with photo) issued by any college (if the applicant is a student)
FAQs Regarding HDFC Demat Account:-
Q. 1. Where can the client open the Demat Account?
A: The client can open the Demat Account with HDFC Bank under any Depository Participant of Central Depository Services (India) Ltd (CDSL) or National Securities Depositories Ltd (NSDL).
Q. 2. What are the requirements for opening an individual Demat Account with HDFC bank?
A: The mandatory requirements for opening an individual Demat Account are:
- ALL Account holder(s) to fill KYC application form
- PAN Card copy for all the Applicant(s).
- Submission of address proof for all the applicant(s).
- Latest Photograph for all the Applicant(s) duly signed across to be affixed on the place provided in the account opening form.
- Canceled cheque leaf for dividend Bank details.
- Customers could have/can open a Savings/Current Account with HDFC Bank.
Q. 3. Can someone else operate my Demat account on my behalf on the basis of Power of Attorney?
A: Yes.
If you authorize any person to operate your account by executing a power of attorney, that person can operate the account on your behalf. However, you need to submit a Notarised copy of the POA to your DP. Ensure that the POA has the signatures of both, the Donor and the Donee. The POA holder is also subject to KYC norms of the bank. However, if the POA is submitted at the time of account opening, it is mandatory that the holder signs the account opening document.
Q. 4. Can the existing corporate Demat account be continued in case of a name change?
A: No, a new Demat account needs to be opened in the changed name, shares are to be transferred from the old account to the new account and the old account needs to be closed.
Q. 5. After the closure of the Demat Account, in how many days will the balance in the Advance Fee Account be refunded?
A: The balance will be refunded within 15 days.
Q. 6. Are there any special offers for a senior citizen on Demat Accounts?
A: HDFC Bank provides special offers as mentioned below on the Demat accounts for their customers in senior citizen category
- No annual maintenance charge (AMC) for the first year
Q. 7. Does the customer have to necessarily operate his Demat account from the same branch where the account is opened?
A: No, an HDFC Bank customer can operate his Demat account from any of the depository branches in India.