Demat Account Limit : Dematerialization Account which we call Demat Account in short. Demat makes the process of keeping investments like shares, bonds, government securities, mutual funds, insurance and ETFs easy.
With this, share certificates and other documents are converted into electronic format. That is, Demat account is the most important thing for trading. A person can open more than one Demat account. Let’s know about the important rules related to Demat account…
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How many Demat accounts can a person open?
A person can open more than one demat account, but each account must be opened with a different broker or depository participant (DP). All demat accounts must be linked to the same Permanent Account Number (PAN Card).
How much does it cost?
Demat accounts usually attract an annual maintenance charge (AMC) of ₹500-₹1,000 per year. Apart from this, there may be other transaction costs as well.
Closing rule
To close a demat account, an account closure form has to be filled. The required documents also have to be submitted to the broker. There is no charge for closing the account, but there should not be any outstanding balance in the account.
Freezing
If a demat account is inactive for a certain period, it may be frozen. To activate a frozen account, KYC may have to be done.
At what age can one open a demat account
There is no specific age limit to open a Demat account in India. However, the Demat account of a minor can be managed by the guardian until he/she attains majority.
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