Demat Account Opening Charges

Demat account opening charges are the one-time amount you pay to your stockbroker to register a Demat account with them. An institution that helps open Demat account is also known as a “Depository Participant” or referred to as “DP”. Multiple stockbrokers, like BFSL is registered with CDSL & NSDL and offer Demat account services to the customers. Demat and trading account charges vary across brokers. Bajaj Financial Securities Limited offers you a free Demat and Trading Account laced with all modern technological features along with a simple user interface. Click here to open a Demat Account.

Demat Account Charges & Fees With BFSL

Types of Charges Charges
Demat account opening charges Zero
Brokerage Charges Depends on the subscription plan chosen: Freedom Pack: Rs. 20 per order (All segments) Professional Pack: Rs. 10 per order (All segments) Bajaj Privilege Club: Rs. 5 per order (All segments)
Demat account annual maintenance Charges Zero
Demat account transaction charges A transaction fee is applicable when shares are credited or debited from the Demat account. These charges vary depending on the offer/scheme chosen by you.
Off Market Transfer within BFSL* Rs. 30 or 0.02% of transaction value, whichever is higher + applicable taxes
Pledge/Unpledge/Closure/Invocation Charges Rs. 35 + applicable taxes
Physical CMR/DIS The first CMR/DIS request is free to post that Rs. 50 + Rs. 100 courier charges + applicable taxes
Dematerialization request charges Rs. 50 per request + Rs. 50 per certificate
Re-materialization request charges Rs. 35 per certificate or 100 shares and part, whichever is higher, and Rs. 25 per re-state of the statement of account redemption
Closure of Demat account There is nothing charged for the closure of the Demat account
Application Process Online within 15 minutes
Trading Products Equity/Derivatives/MTF

For each International Securities Identification Number (ISIN), *Rs. 30 will be debited from your Demat account. If it is a BFSL Demat Account , then the charges applicable are Rs. 30 plus applicable taxes. In the case of market sale transactions, this will be applicable in a scenario when deliveries are made using a BFSL Demat Account against the exchanged securities’ pay-in obligations.

**Will be charged each time an ISIN is debited from your Demat account and if the receiving Demat account is not a BFSL Demat account. This is inclusive of CDSL charges.

Payment gateway charges

Types of Charges Charges
Net Banking Rs. 10 per transaction + applicable taxes
Debit card Rs. 30 per transaction + applicable taxes
Credit Card (Required for opening client’s account; partner onboarding) – 1.40% on transaction value + applicable taxes
Cheque Bounce Charges Rs. 1000 per bounce + applicable taxes

Here are the other charges applicable:

  • Call and trade charges will be applicable at Rs. 20 + GST per executed order.
  • Requests for physical contract notes will be charged at Rs. 50 per contract note along with applicable courier charges.
  • Delay Payment Charges (DPC) of 0.05% per day will be applicable if the account is in debit balance.
  • As per the exchange requirement, 50% of the margin must be maintained in the form of a cash component. Any shortfall will result in DPC being charged.

Subscription plans of Bajaj Financial Securities Limited (BFSL)

The available subscription plans for Bajaj Financial Securities Limited cater to various needs of a trader or investor and allow them to choose a plan that can be beneficial in the long run.
Subscription Plan Freedom Pack Professional Pack Bajaj Privilege Club
Brokerage
₹ 20/order ₹ 10/order ₹ 5/order
Delivery, Intraday & F&O Delivery, Intraday & F&O Delivery, Intraday & F&O
MTF Interest Rates 18% per annum 12.5% per annum One of the Lowest MTF Interest Rates
Yearly Subscription Charges
1st Year FREE ₹ 2,500 ₹ 9,999
2nd Year onwards ₹ 431
OPEN AN ACCOUNT OPEN AN ACCOUNT OPEN AN ACCOUNT

EQUITY/ DERIVATIVE Transaction Charges with Subscription Plans

Type of Charge Delivery Intraday Futures Options
Transaction/ Turnover Charges NSE - 0.00345% BSE - Charges vary as per the scrip group NSE - 0.00345% BSE - Charges vary as per the scrip group NSE - 0.002% BSE - Nil or 0.05% of Traded Value NSE - 0.053% (on premium)BSE - Nil or 0.05% of Traded Value
Clearing Member Charges NIL NIL NSE & BSE - 0.00025% Physical Delivery - 0.10% NSE & BSE - 0.00025% Physical Delivery - 0.10%
GST 18% on Brokerage Transaction & CM Charges 18% on Brokerage Transaction & CM Charges 18% on Brokerage Transaction & CM Charges 18% on Brokerage Transaction & CM Charges
STT ₹ 100 per Lacs (0.1%)on Buy & Sell ₹ 25 per Lacs (0.025%)on Sell Side ₹ 10 per Lacs (0.01%)on Sell Side ₹ 50 per Lacs (0.05%)Sell-Side (on premium)
SEBI Charges 0.00010% of turnover 0.00010% of turnover 0.00010% of turnover 0.00010% of turnover
Stamp Duty As Applicable As Applicable As Applicable As Applicable

What is a Demat Account?

A Demat account is a digital account where you can electronically store the shares you have bought or inherited. Earlier, trading in stock market was cumbersome, as it involved paperwork, and it was expensive, owing to high charges. With digitization, and introduction of Demat Account, now trading has become swift and affordable. Moreover, Demat Account opening charges are minimal, and some Depository Participants offer it for free. Today, retail investors with smaller capital can participate in share market , thanks to Demat Account. With a Demat Account, you can securely store your owned shares, as this prevents any loss or damage. It is easy to open a Demat Account online and only in a few steps. You can store all kinds of securities like bonds , ETFs,,and shares. Opening a Demat account was a tedious and expensive task in the yesteryears, however, with online stockbrokers like Bajaj Financial Securities Limited, you can open a Demat and Trading A/c for free.

How do Online Demat Accounts Work?

A Demat Account helps to eliminate the risk of holding securities in the physical form. It is convenient for an investor to view and track all the holdings at one place in the Demat Account. Investors can open a Demat Account by visiting the website of any Depository Participant (DP). Some DPs do not levy any demat account opening charges and investor can open the Demat Account for free.

A Demat account stores the shares digitally. Every time you buy a share, a digital copy of the share is stored in the Demat account. This makes the process of buying and selling shares in the stock market simple. With an online Demat account you can hold multiple forms of securities in one place, and it also helps you track every share that you have bought in one view. A Demat account is registered with all the governing and monitoring bodies like the exchanges, SEBI, and depositories to ensure a secure and smooth experience for you.

The way a Demat Account works is as follows- an investor places order in the stock exchange to buy a share at a specific price and quantity. The exchange searches another investor who has placed order to sell shares at the same price. Once there is a match, the order is executed, and the associated exchange of shares and money is settled through the clearing corporation. The buyer gets the shares credited in demat account after T+2 days where T is the day of transaction. The record of purchase date and buy price is recorded and can be readily accessed by logging in to the Demat Account.

What are the Different Types of Demat Account Opening Charges?

There are various transaction charges involved with a Demat account. These charges are levied by various governing bodies and the Government of India. Let us understand these charges one by one.

  1. Account Opening Charges:
  2. Account opening charges is a one-time charge that brokers collect from their customers while opening their account on the respective platform. In the earlier days these charges were very high, however, now with the advent of discount stockbrokers in India, brokers like Bajaj Financial Securities Limited offer Demat accounts for free.

  3. Account Maintenance Charges:
  4. Annual account maintenance charges or popularly known as AMC, are collected by the broker annually for the services they provide. Paying this charge allows investors to access all the features available on the DP's platform along with the integrated banking systems and payment processing channels. Some brokers charge this quarterly while some charge this annually. AMC needs to be paid to keep your account active.

  5. Transaction Charges:
  6. Transaction charges are levied on all debit and credit transactions on your Demat account. Every time a share is purchased or sold a certain percentage of the transaction value is deducted as transaction charges. These charges vary from broker to broker and also on the nature of the transaction.

  7. Dematerialization & Rematerialization Charges:
  8. The charges associated with converting a physical share to digital mode is called dematerialization charge, and the charge associated with converting a digital share to physical form is called rematerialization charge.

  9. Pledging Charges:
  10. The shares in demat account can be pledged to avail trading limits or loans. The charge associated with pledging shares in demat account is called pledging charges.

  11. DP Charges:
  12. The charge levied by the Depository Participant (DP) whenever a share is debited from the demat account is called DP charges.

Why Choose Bajaj Financial Securities Limited?

Bajaj Financial Securities Limited is a 100% subsidiary of Bajaj Finance Limited, a reputed name in the finance sector for decades and one of the largest retail asset financings NBFCs in the country. Bajaj Financial Securities Limited’s endeavor is to make stock market investment accessible to larger masses. BFSL has a Corporate Credit Rating of ‘CCR AAA/Stable’ from CRISIL – indicating its strong liquidity position and the ability to withstand difficult economic conditions.

At BFSL, customers get the benefit of one of the lowest brokerage rates in the industry. Brokerage can get as low as Rs. 5 flat/order, for trading in all segments (intraday, delivery, futures & options). BFSL keeps in mind the interest of both traders and investors. It offers its services through the BFSL Trade App and its website. Along with one of the lowest brokerage fees in the industry, it has diverse offerings for investors:

1. Low Brokerage Rates

Brokerage charge is sunk cost for investors. Full-Service brokers anyways charge a high brokerage of the order of 0.25% to 0.50% of the transaction value which means Rs.5 per Rs.1000 invested or Rs. 500 per 1 lac invested.

While discount brokers have created a space of their own by offering an avg. of Rs.20 per order, Bajaj Financial Securities Limited stands apart by offering still lower brokerage rates in discount broking.

BFSL gives brokerage as low as Rs. 5 per order through its subscription plan named , Bajaj Privilege Club. At Rs.9999 per annum.

This includes GST & there are no AMC charges. One level below this plan is the Professional subscription plan at Rs.2500 per annum. Where the brokerage reduces to Rs. 10 per order in all segments.

The final subscription plan is the Freedom Plan which is free of cost for one year. There is no AMC also. From the 2nd year onwards, charges are Rs. 431. Even with the free pack, a brokerage in Delivery, intraday & F&O is just Rs. 20 per order.

Now an options trader for example might take 5 trades in a day to take a new position or adjust existing ones. If there are 20 trading sessions in a month, total trades will be 100 & brokerage at Rs.20 will be Rs.2000 in a month. If the same pattern continues for 12 months, the total brokerage cost will be almost Rs.24,000.

Not taking note of the brokerage being charged might keep you unaware of the quantum of your investible money which gets leaked out through brokerage charges.

2. Margin Trade Financing at low-interest rates

This allows investors/traders to boost their buying power by up to 3.5x. Traders with low initial capital can use this feature to take bigger positions on their desired stocks. MTF is available at low interest rates in the industry. Add to that just Rs. 5 per order brokerage and it turns out to be a great deal! Sunk cost is minimized to the lowest level so that the maximum part of your capital is utilized in investment.

You can also view MTF as a feature that gives you the power to buy now & pay later. This means that you can pay the margin amount to take a position under MTF in the delivery trade when the price was attractive. After 20 days, for example, you get fresh capital- you can utilize that to change the MTF order to regular delivery order by paying the balance amount post margin. The broker will take interest in the number of days the position is carried out.

3. PickRight: Building Long Term Portfolio through expert picked stock baskets

BFSL is continuously progressing with the addition of new features keeping customers’ interests in mind. A recent development is a partnership with PickRight - to take investment experience to the next level. Rather than the one-off stock recommendation, it allows investors to choose a stock basket representing various themes and build a long-term portfolio.

These stock baskets allow investors to pick a theme-based, diversified portfolio of stocks, ETFs, etc. – like Smartcase whose theme is Stability with Growth. It has a collection of ETFs to provide stability in volatile markets and stocks picked up from good-performing sectors for growth. Combine this with the low brokerage offer of Bajaj Financial Securities Limited and investors can reap the benefits non-stop.

Frequently Asked Questions (FAQs):

A Demat account opening charge is the amount you pay while opening your account. Along with the account opening charges, your broker may take a subscription charge depending on the subscription plan you are availing of. With BFSL you get three subscription plans and the charges are levied accordingly.

Yes, depending on the broker you associate with, there will be charges to maintain your Demat A/c. These charges are known as AMC or Annual Maintenance Charges. Sometimes your broker may collect these charges every quarter. Some brokers do not charge AMC.

Annual charges of a Demat account are also known as AMC or annual maintenance charges. Apart from this, there are other charges which are levied upon an investor, account opening charges, transaction charges, and pledge charges.

As the role of a Demat account is to hold shares electronically, there are no minimum balance requirements for a Demat account.

The fees involved with a Demat account are low considering the ease of investing and trading it provides. However, if you want to reduce charges, it is important to choose the Depository Participant which can provide you with a plan where charges are minimal.

Yes, a Demat & Trading account is a must for trading. Discount stockbrokers today offer both accounts together. Participating in the stock market is a necessity.

Dematerialization charge is the charge levied while converting the physical certificates of shares into electronic form. Re-materialisation charge is levied while obtaining physical certificates of electronic shares. There is a fee associated with both the procedures and you can check the fees as per BFSL in the table above.

Yes, you should dematerialize your physical certificates to store them securely and eliminate the risk of physical damage or loss.

You can buy/sell shares through a DP by opening a Demat and Trading account. Once your account is created you will be able to access the online portals of the DP and buy/sell the shares from the platform. With brokers like Bajaj Financial securities Limited, buying and selling of shares is simple and happens in a few clicks.

A DP or Depository Participant is the facilitator between the Depository and the investor. They provide the platform to open Demat Accounts and pave the way to invest in various financial instruments like mutual funds, equities, bonds, etc.,

Yes, it is essential to have a DP as they will provide you the facility to open a Demat Account.

Bajaj Financial Securities Limited allows you to open a free Demat & Trading account. BFSL offers various subscription plans to you depending on your needs and frequency of use.

Brokerage charge is sunk cost for investors. Full-Service brokers anyways charge a high brokerage of the order of 0.25% to 0.50% of the transaction value.

While discount brokers have created a space of their own by offering an avg. of Rs.20 per order, Bajaj Financial Securities Limited stands apart by offering still lower brokerage rates in discount broking.

BFSL gives brokerage as low as Rs. 5 per order through its subscription plan named Bajaj Privilege Club. At Rs.9999 per annum.

This includes GST & there are no AMC charges. One level below this plan is the Professional subscription plan at Rs.2500 per annum. Where the brokerage reduces to Rs.10 per order in all segments.

The final subscription plan is the Freedom Plan which is free of cost for one year. There is no AMC also. From the 2nd year onwards, the charge is Rs. 431. Even with the free pack, a brokerage in Intraday & F&O is lower than most discount brokers at just Rs.17 per order. Delivery orders have a brokerage of 0.1% which means Re.1 per Rs.1000 invested.