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Would you want to open a demat account? Wait! Isn't it a good idea to familiarize yourself with the numerous charges and expenses involved with a demat account before you really start the process? Let’s overview whether you are required to keep a demat account minimum balance.

What is the needed minimum deposit to start a demat account?

Previously, depository members charged up to thousand rupees to open a demat account. However, with time, the practice evolved. You will now have to deposit anything between Rs 0 and R. 500 as a minimum amount for demat account opening, depending on the depository participant that you choose.

However, in order to stimulate retail participation in the stock market, a majority of depository participants have begun to forgo demat account opening fees. That's not all, however. They're also including a trading account in addition to the demat account.

Is it necessary to have a minimum balance in a demat account?

A demat account is an electronic account that enables you to electronically hold shares and other assets. Because a demat account may only hold shares and not cash, there are no minimum balance restrictions. Regardless of whether you have shares to deposit in your demat account or not, it will stay active.

What are the additional fees associated with a demat account?

You may have to pay a few more fees in addition to the starting fee when creating a demat account. Here are a handful of them in a nutshell.

• Charges for Annual Maintenance

These are normal fees that must be paid on an annual basis by the account holder. Many depository participants have recently begun to waive AMCs for the first year, forcing account holders to pay the cost only after the second year.

• Fees for transactions

Depository participants levy a small fee for each debit or credit transaction in your demat account. The transaction charge is the name for this cost. Rather than charging you a fee for each transaction, some DPs may charge you on a monthly basis.

• Dematerialization and rematerialisation of shares charges

When you seek the dematerialization of physical share certificates or the conversion of electronic shares to physical share certificates, depository participants often levy a minor fee.

How can I open a free Demat account online?

Following the easy steps below, you may establish a demat account online in no time.

1. Fill out the account registration form at Motilal Oswal website.
2. Scanned copies of all essential papers should be submitted.
3. Fill out the in-person verification form
4. After successful verification, you will be given an account number/ID.

Now that you know how easy and affordable it is to register a demat account, don't put off beginning your financial adventure any longer.

Wrapping Up

In the present environment, you are unlikely to be required to pay any minimum amount for the creation of a demat account. What are you waiting for now that you've figured this out? Now is the time to open a demat account.

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