Government Demat Account
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In a way, no Demat Account in India is functional without direct or indirect authorization of the SEBI. Every Demat account that you open with a registered depository participant can be labelled as a government approved or simple a government Demat Account.
Mind you, all the Depository participants that are registered with Depositories such as CDSL and NSDL which in turn are registered with the highest government authority, Securities and Exchange Board Of India (SEBI).
So that’s what we mean when we say that all valid Demat accounts are overseen by the Government through a systemic channel.
But certain Depository participants are public-funded or government-aided in a broader sense, hence if one feels insecure to go with private ownership-based stockbrokers, they can choose these Government Demat accounts.
Government Demat Account Bank
Many a Government-funded stockbroker offers the best 3 in 1 Demat account facilities, and among them, some are bank-based brokers while others have a tie-up with an external public bank entity.
Having a Demat account with the registered stockbroker and further controlled directly by the Indian government adds on the security to your investment and holding in your Demat account.
Now you might be thinking that is there any Government firm or stockbroker?
SHCIL is the corporate stockbroker offering you the option to invest in equity and Futures and options trading in NSE and BSE listed companies. Other than this, there are nationalized banks offering stockbroker services.
Few of the bank-based stockbroker like PNB does not offer the services directly while there is the bank SBI that is independently registered with the SEBI to offer the Demat and trading services to its clients.
Here we take a look at a few Government Demat accounts that open your share market account by following the SEBI guidelines for demat account.
SHCIL Demat Account
Stock Holding Corporation of India Limited or simpy SHCIL is a full service, Bombay-based, government-affiliated stockbroking service.
It was in 1995, SHCIL Services started offering this service. In addition to a Demat Account, SHCIL services also offer a trading account alongside. With a decent client base, it offers an opportunity to invest in equity and derivatives trading products.
The stockbroker like any other depository participant offers a seamless way to open an account. Just keep the documents required for Demat account handy and proceed further with the account opening process online.
How Can I Open A Demat Account In SHCIL?
The steps to open a SHCIL Demat Account have been mentioned below. Follow these carefully to open an account instantly:
- STEP 1: Go to the SHCIL website (stockholding.com) and then click on the Open Demat Account tab.
- STEP 2: After this, you have to enter some trivial details like Phone number, name, address, etc. With this done you will have to do the OTP verification.
- STEP 3: Now enter details like Aadhaar Card, PAN card, date of birth, bank account number, IFSC code.
- STEP 4: After this just upload some documents like address proof, DOB proof, PAN card, Aadhaar card.
- STEP 5: Now with this, you have to just take care of the NSDL e-sign process and post that you will be able to access your Demat account if all your documents are valid.
Now similar to other stockbrokers, there is some Demat account opening charges, the detail of which is given in the table below:
SBI Demat Account
SBI, a name that can easily make to the list of one of the most trusted of the banking sector of India, is also offering a Demat account for which any intrusted investor can apply online or offline.
This Government sector bank provides stockbroking services through its subsidiary known as SBI Securities. So if you wish to open this 3-in-1 Government Demat Account, you can go through the following opening procedure.
Not only security of shares but these government banks offer you the relaxation in paying additional charges and are more reliable than any other stockbroker.
How To Open SBI Demat Account?
The process of SBI Demat account opening is very basic and has a simple procedure that you need to follow.
- STEP 1: Go to the SBI Securities website and then submit simple details like name, mobile number, and email address.
- STEP 2: After submitting these basic details, you have to enter an OTP which would have been sent to the mobile number.
- STEP 3: In this step upload KYC documents like Aadhaar Card, PAN card, address proof, bank documents, etc, and then click “Submit”.
- STEP 4: After this, you will be redirected to the NSDL website where you have to complete an Aadhaar OTP verification.
- STEP 5: Now you will have to complete the IPV video verification to move to the last step.
Once you are done with the above-mentioned process you will be able to access this Government Demat Account in 1-2 days.
Let’s now have a quick look at the SBI demat account charges, the details of which is given in the table below:
PNB Demat Account
PNB offers a 2-in-1 Demat plus savings account facility, for which you can apply by choosing between the following four full-service brokers:
- SMC Online
- IDBI Direct
- Aditya Birla Capital
Now, you can choose any of the above services of trading account facility and then open this Government Demat Account. And the fact that this is a bank-based broker model, hence that’s an added trustworthy factor.
How To Open PNB Demat Account?
The PNB online Demat account opening process is slightly different from the usual processes, because if one has a savings account already with PNB then they just have to link the Demat account, otherwise first they will have to apply for a savings account.
For the first case scenario, the following is the process:
- STEP 1: First of all go tour the PNB Internet banking portal and log in with the correct credentials.
- STEP 2: Now look for the Demat account linking option and click on that.
- STEP 3: Now verify your PNB Account number and then select the Depository.
- STEP 4: After this, just enter the Demat Account BOID you are going to link.
- STEP 5: Next step will involve OTP verification.
- STEP 6: Once the above verification process is complete, the Demat Account will get linked.
But before opening a Demat Account whether with a Government entity or Private entity, remember to always check the Demat account charges beforehand. To provide you with the information of the same, here is the PNB Demat account charges.
Opening Demat Account with Depository
What’s a Depository and how is it related to Depository Participants? Well, there are two depositories, both are government authorized, namely, CDSL and NSDL. And Depository is the organization that holds securities and manage demat account registered Depository Participant.
There are depository participants registered with either CDSL or NSDL or both. So, although you open a Demat account with the stockbroker, but in turn your demat account is managed by the government-registered depositories.
However, there is not much difference between the two, but when it comes to security, then NSDL is comparatively more secured than CDSL. Choosing a depository is therefore the first step when opening a demat account,
Let’s have a quick glance at the stockbroker registered with the major depositories.
CDSL Demat Account
There are no provisions of opening a Demat account directly with CDSL, although under CDSL are several stockbrokers registered that you can open a Demat Account with.
Following is a list of some of the renowned private brokers that offer broking services and are registered with CDSL:
- Bajaj Finserv
- Paytm Money
So opening a Demat account with any of the above-mentioned brokers would mean that you are utilizing the services of Government supported brokers.
All the above-mentioned stockbrokers have a decent presence in the stock market in terms of client base, trading platforms, products, and services.
Also, most of them are discount stockbroker and hence you can trade across segments at the minimum cost.
NSDL Demat Account
Just like the case with CDSL, NSDL too is just a government-recognized Depository. And with NSDL too, several stockbrokers are registered.
The only difference between NSDL and CDSL is that they are associated with different markets or exchanges, ie, NSE and BSE respectively.
Here’s a list of stockbrokers registered with NSDL. Note, that some brokers are registered with both the Government depositories:
Again these stockbrokers are among the best brokers in India that offers you different products including equity, commodity, currency, IPO etc where you can invest as per your plan and reap the maximum benefits out of it.
Once you open your demat account with any registered stockbroker, you will be assigned a unique NSDL Demat Account Number as well.
Confused which stockbroker goes with your investment need? Fret not! Reach out to us and we will assist you in choosing the broker and in opening a demat account online for Free.
Government Demat Account App
As discussed earlier, that we have several broking services in India that are Government based and opening a Demat account with these brokers is always an option. And when one does open a so-called Government Demat Account, then it’s obvious that they will also be provided with trading platforms, either web-based or mobile app or both.
These apps offer you information like:
- Live market updates
- Top Gainers and Losers
Other than this, the app has advanced features like:
- Charts and Indicators
- Research Reports
- Advanced order types
- Option chain
Now the when it comes to choose the stockbroker, one must consider the above features to distinguish the stockbroker and open an account with the one offering multiple features without imposing additional charges
SHCIL Trading App
The ratings of this app are self-evident of its performance and usability. This app has been found very slow to rely on for trading by various users.
Lately, there have been some features added to this app that will help to pace up things for its users. The updated facility of fingerprint login is one such addition.
The top features of the app are:
- Market overview with real-time updates
- Multiple options to create a watchlist
- Easy track of orders with the order book.
- In-build brokerage calculator
SBI Securities Mobile App
With some recent updates, the SBI Securities app has shown that they are eager to serve their customers by offering exquisite features and best in class tech support. And this has somewhat changed the picture as is reflected in customer reviews.
However, several traders of the F&O segment find the app not suitable and easy to use as they have to take extra efforts to look for basic functionality while trading in these segments.
Overall, this app is a “work in progress” and is far from living up to the legacy of SBI.
Here are some of the prominent features of the SBI Securities mobile trading app:
- Seamless login
- Watchlist with live bid and ask price.
- UPI and net banking option for fund transfer
- Advanced charting tools with real-time data
PNB Demat Account App
As discussed above, PNB only offers the provision to open a demat account. However, to trade using a PNB demat account, you have to link it with the stockbrokers, like SMC Online, Geojit, etc.
In simple terms, you can trade using the app of any of the four stockbrokers, the review of which is provided in the table below:
It is good to review the features including the speed and performance of all the above-mentioned trading apps before you opt for opening a demat account with PNB.
Government Demat account is a reality, although not literally but implicitly. And this can’t be ignored that opening a Demat account with a government-backed body is a reliable option to choose.
But along with reliability, one must also focus on the facilities, features and the overall quality of a stockbroker, government or otherwise.
Government Demat Account FAQs
1. Can Government Employees Invest In Share Market?
As per rule 35(1), are only allowed to make a periodic investment done by stockbrokers. However, they are eligible to invest in mutual funds.
2. Can Government Employees Open Demat Account?
Since the Government employees are allowed to invest in shares, IPO, and debentures, hence to hold the same, it is important for them to have a Demat account.
3. Can Government Employee do Intraday Trading?
No, Government employees are not allowed to do frequent buying and selling of shares in the stock market and hence they are not allowed to do intraday trading.
Secure your holdings in the demat account by choosing the registered stockbroker. Get in touch with us and we will assist you in opening your Demat account for free.
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