How to Open Sharekhan Demat Account – Charges and Details

Sharekhan is a leading online brokerage platform in India that offers a range of investment and trading services to its customers.

If you are interested in investing in stocks, mutual funds, or other securities, you will need to open a demat account with Sharekhan. In this blog, we will discuss how to open a Sharekhan demat account, the charges involved, and other important details you need to know.

What is a Demat Account?

Before we discuss how to open a Sharekhan demat account, let’s first understand what a demat account is. A demat account, short for dematerialized account, is an account that is used to hold and transact securities in an electronic format. It allows investors to buy, sell, and hold securities such as stocks, bonds, and mutual funds without the need for physical certificates. A demat account is essential for online trading and investing.

How to Open a Sharekhan Demat Account?

Opening a Sharekhan demat account is a simple and straightforward process. Here are the steps involved:

Visit the Sharekhan Website

The first step is to visit the Sharekhan website at www.sharekhan.com. Click on the ‘Open an Account’ tab on the top right corner of the homepage.

Choose the Account Type

Sharekhan offers three types of demat accounts – Classic Account, Trade Tiger Account, and Speed Trade Account. Choose the account type that best suits your investment needs.

Fill in Your Personal Information

Next, you will be asked to fill in your personal information such as name, date of birth, PAN card number, Aadhaar card number, and contact details. Ensure that the information provided is accurate and matches the details on your ID proof documents.

Fill in Your Bank Details

You will also need to provide your bank account details, including bank name, account number, and IFSC code. This is required for fund transfers and to link your bank account with your demat account.

Upload ID Proof and Address Proof

Sharekhan will require you to upload scanned copies of your ID proof and address proof documents. The acceptable ID proof documents include PAN card, Aadhaar card, passport, voter ID card, or driving license. The acceptable address proof documents include Aadhaar card, passport, voter ID card, driving license, or utility bills.

Sign the Account Opening Form

Once you have provided all the required information and uploaded the necessary documents, you will need to sign the account opening form digitally using your Aadhaar card. This is a mandatory step for opening a demat account with Sharekhan.

Pay the Account Opening Fee

Finally, you will need to pay the account opening fee, which is a one-time fee charged by Sharekhan for opening a demat account. The fee varies depending on the type of account you choose.

What are the Charges for a Sharekhan Demat Account?

Opening a Sharekhan demat account involves certain charges and fees that you need to be aware of. Here are the charges involved:

1. Account Opening Fee: As mentioned earlier, Sharekhan charges an account opening fee for opening a demat account. The fee varies depending on the type of account you choose. For a Classic Account, the fee is Rs. 500, for a Trade Tiger Account, the fee is Rs. 1,000, and for a Speed Trade Account, the fee is Rs. 3,000.
2. Annual Maintenance Charges: Sharekhan also charges an annual maintenance fee for maintaining your demat account. The fee varies depending on the type of account you have. For a Classic Account, the annual maintenance fee is Rs. 400, for a Trade Tiger Account, the fee is Rs. 1,000, and for a Speed Trade Account, the fee is Rs. 3,000.
3. Transaction Charges: Sharekhan charges transaction fees for buying and selling securities through your demat account. The fees are charged based on the value of the transaction. The charges are 0.03% of the transaction value or Rs. 30, whichever is higher.
4. Depository Participant Charges: Sharekhan is a depository participant of NSDL and CDSL. As such, it charges depository participant fees for the services provided. The fees are charged based on the number of securities held in your demat account. The charges are Rs. 25 per ISIN per quarter for NSDL and Rs. 50 per ISIN per quarter for CDSL.
5. Other Charges: Sharekhan also charges other fees such as SMS alerts, call and trade charges, and additional statement requests. The charges for these services are nominal and can be found on the Sharekhan website.

It is important to note that these charges are subject to change from time to time. You should check the latest fees and charges on the Sharekhan website before opening a demat account. Additionally, there may be taxes and levies such as GST and stamp duty that are applicable on transactions carried out through your demat account. You should be aware of these charges and factor them in while investing.

Advantages of Opening Sharekhan Demat Account

Opening a Sharekhan demat account comes with several advantages. Here are some of the benefits of opening a Sharekhan demat account:

1. Easy Trading: With a Sharekhan demat account, you can easily buy and sell securities online. The trading process is quick and convenient, and you can trade from anywhere, anytime.
2. Wide Range of Investment Options: Sharekhan offers a wide range of investment options such as equities, derivatives, mutual funds, IPOs, bonds, and more. With a demat account, you can invest in multiple securities and diversify your investment portfolio.
3. Safe and Secure: A Sharekhan demat account is safe and secure. The securities are held in electronic form, which eliminates the risk of theft, loss, or damage. Additionally, Sharekhan uses the latest security measures to protect your account and transactions.
4. Access to Research and Analysis: Sharekhan provides access to research reports, market analysis, and investment advice. This can help you make informed investment decisions and maximize your returns.
5. Mobile Trading: Sharekhan offers a mobile trading app that allows you to trade on the go. You can track your portfolio, view market updates, and place trades from your smartphone or tablet.
6. Personalized Services: Sharekhan offers personalized services such as relationship managers, portfolio management services, and trading tips. These services can help you manage your investments better and achieve your financial goals.
7. Low Fees and Charges: Sharekhan offers competitive fees and charges for its services. The transaction charges are low, and the annual maintenance fees are reasonable. This can help you save money on your investments.

In summary, opening a Sharekhan demat account offers several advantages such as easy trading, a wide range of investment options, safety and security, access to research and analysis, mobile trading, personalized services, and low fees and charges. These benefits can help you maximize your returns and achieve your financial goals.

Disadvantages of Opening Sharekhan Demat Account

While opening a Sharekhan demat account has its advantages, there are also some disadvantages that you should consider before making a decision. Here are some of the disadvantages of opening a Sharekhan demat account:

1. Hidden Charges: While Sharekhan offers competitive fees and charges, there may be some hidden charges that you may not be aware of. For instance, there may be charges for using certain features of the platform or for maintenance of the account. Therefore, it is important to read the terms and conditions carefully before opening a Sharekhan demat account.
2. Limited Branches: Sharekhan has a limited number of branches, which may make it difficult for you to get support in case of any issues or concerns. This may be a problem if you prefer to have face-to-face interactions with your broker.
3. High Account Opening Fees: Sharekhan charges a high account opening fee, which may be a deterrent for some investors. The fee may vary depending on the type of account you choose and the services you require.
4. Limited Education and Research Material: While Sharekhan provides access to research reports and market analysis, the quality and depth of the material may be limited compared to other brokers. This may be a problem if you are a beginner or if you require an in-depth analysis of the market.
5. High Brokerage Charges: Sharekhan charges a high brokerage fee, which may impact your returns. While the fees may be competitive compared to other full-service brokers, it may still be higher than discount brokers.
6. High Margin Requirements: Sharekhan may require high margins for certain trades, which may limit your investment options. This may be a problem if you prefer to trade in high-risk securities or if you have limited capital.

In conclusion, opening a Sharekhan demat account can be a good or bad decision depending on your individual investment needs and preferences. It is important to weigh the advantages and disadvantages carefully and choose a broker that suits your investment goals and objectives.