Depository Participants and Reasons For Free Demat Account Opening

 Depository Participants

Finding out how to create a Demat account is followed by finding out about Depository Participants. Establishment and operation of a depository are governed in India under the Depository Act of 1996. Any depository's operation is governed by SEBI, which is the regulating authority. The two largest depositories in India are NSDL and CDSL.



The National Stock Exchange, Industrial Development Bank of India, and Unit Trust of India are the sponsors of National Securities Depository Limited (NSDL). Furthermore, the Bank of India, State Bank of India, and Bombay Stock Exchange all support the Central Depository Services Limited (CDSL).

A few advantages of depositories at free demat account opening are as follows:

1.Holding security on an investor’s behalf

In order to preserve and protect the securities on behalf of the investors, a depository serves as a guardian. It relieves investors of the burden of having to keep their own securities and devote time to their upkeep.

2.Ease of transfer

Facilitating the transfer of securities owned by an owner is a depository's principal function. The securities are transferred straight from the seller's account to the buyer's by the depository upon deal completion. This type of electronic communication lowers error margin while increasing transaction speed and efficiency. 

What is the role of a depository?

Within the stock market operations process, depository services provide the following functions.

Acts as a connecting element As a middleman, a depository serves. Information on ownership transfers, periodic investor holdings, business activity, and other topics are sent to investors. On the basis of the data given by the depositories, businesses can similarly maintain reliable shareholding data.

Establish market liquidity by offering mortgages or loans secured by investor securities, which may then be used to buy further securities from depositories. Also known as margin, this is the liquidity that a depository provides to its customers. Depository banks that have free demat account opening also make money by lending the securities to other organisations and companies. 

Invest on the go: Depository services have made it possible for investors to make large, global investments from any location. To trade on a big scale through a depository, investors can participate in IPOs and ETFs.

Steps for Opening a Demat Account

Step 1 - Fill the Details and Submit the Demat Account Opening Form

  • Complete the online form to Globe Capital Securities for a free demat account opening. Enter the required information in the online form, such as your email address and mobile number.

Step 2 - Submit Supporting Documents for Opening Demat Account

  • Give your bank account and PAN card data. Input your precise PAN number and the bank account information you want to use for the transaction.

Step 3 - Complete E-KYC Process and Receive Demat Account Number

  • Verify your KYC information online. Verification of your KYC information is done online. 

Types of Charges Associated With Opening a Demat Account:

  • The stockbrokers impose a number of fees for their opening of Demat accounts. The cost differs according on the brokerage even though the charges are still listed under the same title. As an illustration, Globe Capital charges a comparatively little opening cost for Demat accounts in comparison to other stockbrokers. In order to help you understand how to register a Demat account online, the following is a quick explanation of all the different sorts of charges:

  • Account Opening Charge: The account opening fee is a one-time payment made at the time of opening the Demat account by the stockbroker. At the beginning, there is a one-time cost that is non-recurring. No matter how many transactions you complete each year, you will still be required to pay an annual maintenance charge to keep your Demat account active.The process of transferring physical share certificates into digital records, known as dematerialization, is subject to a cost.Share certificates that have been rematerialized are tangible proofs of ownership created from electronic share records. Rematerialization is likewise subject to a price, just as dematerialization.


  • Mutual fund unit conversion: Converting physically held mutual fund units into a dematerialized form is usually subject to a fee charged by depository participants. Most depository participants, with free demat account opening as a general rule, simply impose a single, flat cost for mutual fund unit conversions. 


  • Definition: Destatementization is the act of transferring mutual fund units from their physical form to an electronic form that has been dematerialized.

  • Reconversion of mutual fund units into Statement of Account (Restatementization): "Restatementization" refers to the process of converting mutual fund units kept in a Demat account into their physical form, which is documented by a Statement of Account (SOA) and is subject to a nominal cost.

  • Redemption: You must return your mutual fund units to the fund company in order to complete the redemption procedure. For each redemption request, the majority of depository participants levy a fixed cost.

  • Postal Fees: In order to send you papers and account statements in person, depository participants must pay postal fees for free demat account opening.

Why do you need to open a Demat Account?

Once you've mastered the art of online account opening, you may proceed to establish the most feature-rich Demat account with Globe Capital. The following advantages are available to you with a Demat account:

  • Secure: The value of an investment will only increase or decrease based on market circumstances and the investor's investment strategy. However, a Demat account can guarantee the security of the investment. When shares and bonds were corporeal, they may be misplaced, stolen, or destroyed. When shares, bonds, mutual funds, or other investments are maintained electronically, a demat account ensures the security of the holding. With a Demat account, all of the shares in your account are authentic, so you don't have to worry about shares being counterfeit. 


  • Convenience: The quickness of a Demat account's commands is one of its main benefits. Orders are processed error-free in a matter of seconds after they are placed. In a similar vein, the usage of Demat accounts has simplified securities transfers. In the past, transferring stocks to an individual might take months since the securities needed to be forwarded to the company's registrar for approval. Securities can be transferred instantaneously through a Demat account by investors utilising a delivery instruction slip or reception instruction slip. 


  • Accessibility: You may access your securities at any time and from any location by using a Demat account. With the ability to view your portfolio and make investments whenever it suits you, the trading platforms provide you control over your money. Using an application, you may trade while on the go, or you can set up a system that runs on your laptop.

Ultimately, you may maintain and monitor all of your assets under one roof with free demat account opening, which supports not just the stock share market but also other electronic financial products including bonds, mutual funds, and debt securities. You may purchase or sell shares without worrying about the quantity when you have a Demat account with Globe Capital. With demat accounts, these limitations do not exist, and you are free to purchase or sell any number of shares. 

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