State Bank of India (SBI) Demat account is the account that holds all shares of account holders in electronic or dematerialized form. Informed country’s largest lender on its official account.
SBI’s Demat account holds the certificates of financial instruments like shares, bonds, government securities, mutual funds, and exchange-traded funds (ETFs).
According to SBI, the Demat account enables converting physical share certificates into electronic balances. Also, it facilitates delivery/receipt of electronic balances consequent to market / off-market trades, further said SBI on its official website.
Stock trading involves 3 different accounts:
- Trading Account
- Bank Account
- Demat Account
Trading in SBI Demat Account
SBI Demat Account holds securities in the digital form. It works like a bank account. As the bank account holds money, the Demat account holds securities. The securities such as Shares, Mutual Funds, and shares allocated through IPO, etc.
They credit the shares into the Demat account every time the customer buys new securities and is debited when they sell it.
The central depositories (CDSL and NSDL) manage the Demat account. The broker like SBI only acts as an intermediary between you and the central depository.
You can use the SBI Trading Account for stock trading (buying and selling of the shares). Customers place orders for buy or sell equity shares in trading accounts online or over the call.
SBI Bank Account is for credit/debit of money for transactions done in the trading account. When the customer buys the share, it withdraws the money from the bank account. When the customer sells the shares, it credits the money received in the SBI Bank account.
Trading is done in a Trading Account. The Demat and Bank accounts provide shares and money needed.
It requires the photocopy of the following documents to open your Demat and trading account at SBI:
- PAN CARD
- Aadhar Card (for address proof)
- One passport-size photo
- Existing SBI saving account passbook (optional)
If you remember your SBI account number and its IFSC code, then the SBI saving account passbook photocopy is not required. You just have to fill your savings account details in the account opening form. However, it’s good to keep the photocopy, just in case.
SBI Cap Securities is a very reputed brokerage firm that carries out all the transactions in a very efficient and transparent manner. The fees, costs and even the brokerage charges are very rational and you end up sharing only a small margin of your profits as fees. This leaves you richer and makes the experience of trading a very rewarding one.
How To Open Demat Account In SBI
To Open SBI Demat Account is a very easy process. All you need to do is follow the below steps:
- Fill in your credentials on the mini form that pops up. The contact information like Name, Mobile Number & City.
- Once you’ve filled up the online form and click ok, it goes to their back office for processing. They will arrange a call back from their sales executive who would then assist you in the rest of the formalities. The representative will then help you with the KYC upload process.
- You can upload your KYC documents i.e. Adhaar Card, PAN card and address proof, etc documents online as well. All you need to do is scan these documents in a clear format and upload them on the website itself.
- Once you have uploaded the documents, the verification process will be carried out wherein the company executive may call you to cross-check all your details.
- Post verification, your account will be activated within 24-48 hours.
SBI Trading Account
With the SBI Trading Account, you can surely enjoy many benefits:
- Trade across multiple segments all at one go; i.e. from Equity to currency, from Options to Futures and from Derivatives to Commodity, you can trade on all segments here.
- State of the art Technology driven Apps be it desktop or mobile Apps. This will enable you scale up on your trading career much faster than you would have attributed.
- Comprehensive research analysis tools and analytics are done in this company which enables customers to trade better
- They also have simplified education tools for the investors so that they can take demos of all the trading platforms and start trading efficiently
- Their trading platforms are available via omni channel networks – Trading Terminal, Mobile Apps for trading platform, Offline trade as well as Online trade.
SBI Demat Account Charges
SBICAP Securities Ltd (SSL) is the stockbroking arm of the State Bank Group and a 100% subsidiary of SBI Capital Markets Ltd. SSL is a full-service stockbroker.
The portal allows both Resident Indians and Non-Resident Indians (NRIs) to invest online. They invest in in Equity, Derivatives, Mutual Funds, ETFs, IPOs, and NCDs. It also offers lending products like Home Loans, Car Loans, and Loan Against Securities (LAS).
SBICAP offers a 3-in-1 account to its customers linking all three accounts i.e. Bank Account, Demat Account and Trading Account together. In the 3-in-one account facility, the Savings/Current account is held with SBI while it opens the Demat and Online Trading account with SBI Cap Securities Ltd.
SBICAP offers several online trading software to its customers, including:
- Portal (Web-based Trading Platform)
- Xpress (Desktop Trading Software)
- Lite (Website Trading)
- Mobile App
SBI Demat Account Charges
|Charges||Amount (in Rupees)|
|Demat account opening charges||100/-|
|Trading account opening charges||400/-|
|Maintenance charges for Demat account||400/-|
|Failed delivery instruction||35/-|
- Securities / Commodities Transaction Tax: Tax by the government when transacting on the exchanges. Charged as above on both buy and sell sides when trading equity delivery. Charged only on selling side when trading intraday or on F&O.When trading at TRADE SMART Online STT/CTT can be a lot more than the brokerage we charge.
- Transaction/Turnover Charges: Exchange transaction charges + Clearing charges. Charged by exchanges (NSE, BSE,MCX) and clearing member.
- Call & trade: Additional charges of Rs10 per executed order:
- Stamp charges: Charged as per the state of the client’s correspondence address.
- GST: Tax levied by the government on the services rendered. 18% of ( brokerage + transaction charges)
- SEBI Charges: Charged at Rs.15 per crore by Securities and Exchange Board of India for regulating the markets.
- Intra-day Trades: 0.15% (both sides) Or Minimum 5 paise per share whichever is higher.
- Delivery Based Trades: 0.50% or Minimum 5 paise per share whichever is higher.
- Futures: 0.05% for intraday and 0.09% for carrying forward Or Minimum 5 paise per share whichever is higher.
- Options Trades: Rs. 50/- for intraday (one side) (per contract) and Rs. 100/- for carrying forward (per contract).
How To Close SBI Demat Account
For closing SBI’s Demat account, you need to manually visit branch or DP office (any of the account holders can visit the branch) and there only you need to submit the required form and documents.
For downloading the account closure application form, you can visit SBI’s website or for downloading the form from here.
The details which you need to acknowledge in the form are as follows:-
- DP ID
- Client ID
- Details like name and address of the account holder which should match the existing records.
- Reason for closing the account
- If the account has multiple holders then each need to sign over the form but if there is any POA holder then he cannot sign the closure request form.
- If your SBI’s Demat account has any balance or holdings then you need to mention the details of the account in which the balance required to be transferred. And this transfer takes place by filling up a delivery instruction slip/DIS before the account closing.
Important points to be noted before closing Demat account
There are some points which you need to take care before proceeding for the closure of account with your broker:
- Check whether there is any share in your account– Your account which you need to close do not have any shares. If it has shares then you need to be sold out or transfer them to another Demat whichever you used. Even you can convert (rematerialize) those shares to physical form.
- Check the balance of your account- Your account doesn’t have a negative balance. If it has so you need to settle that amount then only closure process will take place.
- Unused delivery instruction booklet slip should be submitted back to the DP– If you have unused delivery instruction slip then you need to return that with your closure letter. Don’t worry if you have lost it. Most of the broker doesn’t ask for it anymore.
- Dead ISIN: The account cannot be closed if it contains ISINs. The International Securities Identification Number (ISIN) is an ID number that is unique for all the shares of a company. There is no problem in transferring live ISINs, which belong to companies whose shares are being traded on stock exchanges, but what do you do with dead ISINs, which are companies whose shares are no longer being traded. In this case, apply for the dematerialization of the dead ISINs (conversion of electronic holdings into share certificates, the opposite of dematerialization) to your DP before placing your account closure request.
Account closing time
After completion of all the formalities in the required form, it will take around 7 to 10 days to close the account.
Account closing charges
There are no extra charges for closing the account.
|SBI Securities Advantages|
|State Bank of India is the country’s largest bank of India and a trusted brand.|
|Full-service broker with a wide range of financial services under one roof.|
|Offer online investment in IPO, Mutual Funds, and Bonds.|
|It offers research reports and analysis tools to all customers.|
|SBI Securities Disadvantages|
|Very high brokerage compared to the online discount stock broker.|
|Call & Trade is free for first 30 calls a month. After that, it is charged at Rs 10 per call. You can enquire Max in 1 call.|
The charges for basic plans are ₹850 + 18% GST, so the total amount will be ₹ 1003. That will directly be deducted from your linked State Bank of India savings account.
SBI Demat Account is the most promising and sought after Demat accounts that a trader aspires for.
All latest technological interventions, equipped with scientific and analytical researches and yet downright customer-centric behavior.
These are the principles of this company and hence they have grown unanimously in the last decade and are still growing tall among their competitors.