What is a basic services demat account - indianmoney.com

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What is a basic services demat account?

                      

You want to invest in the stock market but don’t have too much money to invest. You need a demat account to invest in the stock markets but find the charges quite high.

So how can you invest in the stock markets without incurring high charges? You need a demat account which charges you very low maintenance fee.

A basic services demat account…….. 

  

What is a basic services demat account?

You can open a basic services demat account if you are a first time investor in the stock market.You can also open a basic services demat account if you already have a demat account and you are the sole (only) holder of this account.

You can have only a single basic services demat account.

Why you need a basic services demat account?

If you are a small investor in the stock markets with holdings less than INR 50,000 (<INR 50,000) then it would be wise to opt for a basic services demat account also called a no-frills demat account.

There are no annual maintenance charges (Maintenance charges are nil) if the holdings in your demat account are less than INR 50,000.

If the value of the shares in your demat account (value of your holdings) are between INR 50,000 – INR 2,00,000 then you will have to pay an annual  maintenance fee of INR 100.

If the value of the shares in your account exceeds INR 2 Lakhs then you will have to pay an annual maintenance fee which is the same as that of any normal demat account.

You have the option to convert your demat account to a basic services demat account if the value of your shares (holdings) slips below INR 2 Lakhs.

You can also store mutual funds in the basic services demat account. The value of the mutual funds in your demat account is calculated based on the net asset value.

If the value of your mutual funds goes above INR 2 Lakhs  (NAV goes up) then you have to pay the same charges as a normal demat account.

You would get the statement of your holdings (The shares you have in your account and their value) in an electronic format free of charge.

You will also get up to 2 physical statements free of charge if you opt for the basic services demat account.

If you need an additional statement (beyond the 2 free physical statements) then you will have to pay an amount up to a maximum amount (capped at) INR 25 per statement.

You will also get a debit alert on your basic services demat account (when you sell shares and they move out of your demat account) if you opt for the basic services demat account.

You will get transactions for your basic services demat account every quarter. This is only if there are transactions in your account and there is a balance in your account.

You no longer need to worry about investing in the stock markets if demat charges are your problem.

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