Demat Account Limit: The number of people opening demat accounts in the country has reached more than 10 crores. You too have been running a demat account for years, but do you know how much amount you can invest in these accounts. That is, what is the limit of investment through demat accounts.
Demat account invest Limit: Be it stock market or mutual fund, you need a Demat Account to invest. After the Corona period, the number of people opening demat accounts in the country has also increased and the number of accounts has also crossed 10 crores. But, do you know how much you can invest through Demat account. Is there any limit regarding this or investors can invest as much as they want. Apart from this, many people may not know about the fees charged every year for demat accounts.
Demat account is in a way a multi task account. With its help, the user does not have to keep financial securities in physical form, rather they remain safe in this account electronically. Apart from this, users can invest in various types of securities from a single account. Be it stocks, mutual funds, bonds or derivatives, users can easily buy and sell through this account on online trading platforms.
Who manages this account?
Managing your demat account is done by Indian depositories like Central Depositories Services Limited (CDSL) and National Securities Depositories Limited (NSDL). As soon as the user buys shares through the broker, it is credited to his demat account. Similarly, when you sell shares through a broker, that number of shares is debited from your account.
There are two types of demat accounts
There are two types of demat accounts according to the needs of the user. The first is Basic Service Demat Account (BSDA) in which the annual investment limit is Rs 2 lakh. This account was started by SEBI in the year 2012, the objective of which was to attract small and retail investors towards options like stock market and mutual funds. Through this you can also invest in ETFs. To manage these accounts, Rs 100 and GST have to be paid every year.
The limit increases automatically and…
As soon as the amount in the basic demat account goes above Rs 2 lakh, it automatically gets converted into a full service demat account. There is no limit on investment from such accounts. You can transact any amount through this account. Its annual maintenance charge is around Rs 1000 plus GST. With this type of account you get all access to Demat.
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