Different financial services are offered by SBI or State Bank of India through its many subsidiaries. The financial house offers some of its financial services including equity, derivatives, retail broking, etc. through its wholly-owned subsidiary, SBI Securities Ltd which apart from other services offers the SBI Demat Account.
It has more than 115 branches all over the country.
The financial house also has a strength of more than 1000 field force agents helping out customers by reaching their doorsteps on demand. In this article, we will learn about various aspects related to SBI demat account.
SBI Demat Account Review
Let us discuss some of the features of demat accounts opened by SBI.
1. SBI offers the facility of 3-in-1 integrated account. The services included in this type of account are discussed below:
A. Savings account – It is a normal bank account which is used for saving, crediting and debiting money.
In case stocks or any financial instrument is bought in any transaction, the required money is withdrawn from this account. When any of the financial instruments are sold, money comes back into this account.
B. Demat account – The purpose of this account is to hold the securities which a customer buys. Stocks, mutual funds, etc. are held in demat account.
C. Trading account (online) – The purpose of this account is doing buying and selling transactions of the financial instruments like stocks, derivatives, etc.
Transactions can be done either online or through telephonic calls placed on the SBI numbers.
2. In India, there are two share depositories registered with the government of India which are NSDL and CDSL.
NSDL stands for The National Securities Depository Ltd. and CDSL stands for the Central Depository Services India Ltd. Now, a customer has an option to choose one from the two options in SBI.
3. One can hold multiple holdings simultaneously in his / her demat account which include stocks, mutual funds, bonds, futures and options, etc.
4. SBI also provides the facility of online applying in initialpublic offerings (IPO) through ASBA net banking.
5. Automatic credit of bonuses and dividends in the account.
6. The facility of customer care support which can be availed anytime during the 24*7 period.
7. If there is a requirement, one can also avail the facility of freezing one’s account.
Some of the ways of opening a new SBI demat account are listed below –
1. SBI Bank Branch – One can visit his / her nearest SBI branch and give all the required information for opening a demat account there. This information will then be forwarded to SBI Cap Securities from there.
2. SBI Cap Securities Ltd. – One can visit SBI Cap Securities Ltd branch directly to open a demat account.
3. Online – One can open demat account online as well by filling the online account opening form and submitting the scanned copies of the required documents. This process does not involve any papers or hassles.
SBI Demat Account Status
After all the required documents for opening a demat account have reached the SBI Cap Securities branch, it would take about 3 days to open the account.
In case of absence of any response from them after three days, one can check the status of his / her application either online.
The customer service page of SBI Smart website would have the status-related information. One would need to fill in the details of the reference number of the application as well as PAN number in order to check the status.
Alternatively, one can also check the application status by visiting an SBI branch in person.
SBI Demat Account Opening Charges
The charges for opening an SBI Demat Account are ZERO.
The Maintenance Charges for every year of SBI Demat Account = ₹350 per year
SBI Demat Account Call & Trade Facility and Charges
There are certain terms of the call and trade facility which have been discussed below:
30 calls are offered for free, following which ₹10 plus taxes are charged for every call.
In every call a client makes, an enquiry for a maximum number of 3 stocks can be made.
In the cash segment, the minimum order value of a buy or sell order of ₹1000 will be considered as an order.
SBI Depository Service Charges
Please note that the below-mentioned charges are for Residential Retail Customers
Charges for Dematerialization – ₹35 are the charges for every request and ₹5 are charged for every certificate.
Rematerialisation – ₹35 are the charges for every request. Also, the higher of the 2 below mentioned options are charged –
₹10 for every 100 securities
A Charge of ₹10 for every certificate irrespective of anything
SBI Demat Account Yearly Charges
AMC charges differ on the basis of the value of holdings. Following is the slab for AMC charges –
Value of Holdings Charges
Less than₹50,000: ₹0
₹50,001 -₹2 Lakh: ₹100 per year
More than₹2 Lakh: ₹500 per year
SBI Demat Account Pledge Services Charges
These charges depend on who the counterparty is.
If the counterparty is SSL or SBI – The charges are higher of the two options – 0.02% of the total value or ₹25. In addition, there are CDSL charges too.
If the counterparty is not SSL or SBI – The charges are higher of the two options – 0.04% of the total value or ₹50. In addition, there are CDSL charges too.
Charges for On – Market (For Selling Transactions) / Off Market Services –
With POA which applies only in case of on market instructions and for instructions that are given through the internet – 0.01%. However, this amount is subject to a range of a minimum amount of ₹21 and a maximum amount of ₹300.
The charges for instructions that have been given through concerned branches – 0.04%, subject to a minimum amount of ₹30. ₹10 are charged as an extra fee for every ISIN because of late submission
The charges for instructions that have been rejected or failed due to any reason are ₹10.
Charges for the request of additional account statements through courier are ₹30 and no charges will be applicable if the request has been made for the statements to reach through email.
SBI Demat Account App
SBISMART Money app is their new mobile phone application which has made trading much easier and educated for a normal investor or trader.
Some of the features of this app are discussed below:
1. Personalized Experience – This is one of the most unique features of a trading app. When one logs into the app for the first time, he / she would be required to answer questions regarding the previous experience in trading and the risk-taking capacity of the individual.
With the help of inputs given for these questions, the dashboard of the app would be customised for an individual in terms of presentation of market-related information, relevant news, etc.
2. Research Benefits – They have a dedicated research team which helps in selecting stocks, making intraday calls, BTST calls and other recommendations based on one’s preferences.
3. Advanced Charts – Interactive charts equipped with many technical indicators help traders make buy and sell calls easily.
4. Scanners – Scanners are used for spotting opportunities in trading at a particular time in the market. One can even avail the facility of creating one’s own scanner based on one’s preferences and strategies.
Buy and sell signal alerts are then generated by the system, thus making the whole experience of trading on a mobile phone seamless and very efficient.
Overall, the app is pretty average and thus, keep your expectations low from this mobile trading app.
SBI has launched another multi-purpose app called YONO (You Only Need One). This app is meant for various purposes like banking, investments, lifestyle, etc.
Demat account can also b held through this app along with many other things that need to be done on a day to day basis like shopping, etc.
SBI Demat Account Advantages
SBI offers one of the best broking services in India. Let us discuss some of the pros of opening an SBI demat account.
1. An integrated account which also handles banking services. This is a one-stop solution for banking as well as trading and holding of financial securities. This also allows online viewing of SBI demat account details, statement of billing, etc.
2. SBI demat account provides the facility of converting physical share certificates into dematerialised form. For more information, check out this detailed review on dematerialization.
It also provides the facility of just the exact opposite of what has been mentioned. It helps in conversion of an electronic balance of shares into physical form.
3. A 24 * 7 dedicated customer support is available for all customers for any queries. Also, the grievances related to services provided under CDSL and NSDL can be emailed to different email ids provided on the website.
4. Online facility of pledging shares for granting of advances against shares.
5. The facility of securities lending is available in order to obtain income on the existing holdings in demat form.
6. Corporate benefits like dividends, bonus and rights issues are directly credited to the bank account of the customers.
7. One can now receive the demat account statement, statement of holdings, the details of all the transactions made and billing statements through the internet. One can also avail the facility of receiving the debit and credit-related information through alerts via SMS.
8. The account statement and bills can be received through emails.
SBI Demat Account Problems
At the same time, here are a few concerns, you must be aware of about SBI Demat Account:
1. Brokerage charges of other stock brokers in India (especially discount brokers) are lower in comparison to brokerages charged SBI Cap Securities which lowers the return on investments of its customers.
2. The reviews of the trading platforms provided by SBI are not really great. There are many faster and better trading platforms available in the market for trading and holding shares purposes.
SBI Demat Account Closure Form
If in case you are looking to close your SBI Demat Account, then you just need to download this form.
Post download, make sure you fill all the details carefully and then submit this form to your closest branch. You may also choose to courier the form to the head office of SBI Securities.
If all the details are correctly entered, then the account closing process takes 3-4 business days.
For more information, you can check this detailed review on How to Close Demat Account.
SBI Demat Account Minimum Balance
There is no such condition of keeping a minimum balance in the SBI Demat Account. However, to go ahead with your stock market investments, an amount of ₹10k is a recommended amount.
You may go less or more than that, as per your investment goals.
SBI Demat account is quite a safe and good way to hold one’s investments in the form of stocks, mutual funds, etc.
Opening SBI Demat account is a simple process and can be completed within 3 days of submission of required forms and documents. This process can be completed online as well as offline.
One should look at various account opening charges and account maintenance charges mentioned in the article. Brokerages charged by SBI on different transactions in all the segments (equity, currency, commodities) have also been discussed here.
SBISMART Money app provides some unique features like customisation of the app according to the customers’ experience related to trading and the kind of risk one is willing to take in his / her investments.
This app also enables traders to make their own strategies and use scanners on the basis of one’s own customised preferences.
The research team also provides help in deciding what stocks to buy and sell, making trades of buying and selling stocks/indices, etc. within the same day.
Buy and sell signals are generated on the system automatically which makes trading much more efficient and profitable.
Overall, when we look at both the pros and cons of SBI demat account, it seems to be a good decision to try using this once.
In case you are looking to get started with stock market trading and investments, just fill in the form below and we will assist you in taking the next steps ahead:
More on SBI Securities
If you wish to learn more about this stockbroker, here are a few references for you: