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Upstox Demat Account

The Upstox Demat Account is a facility provided by Upstox, a popular online investment platform in India, to hold your financial securities (like shares, bonds, mutual funds, etc.) in an electronic format. This eliminates the need for physical share certificates, making trading and investing more convenient and secure.

Here's a breakdown of what you should know about the Upstox Demat Account:

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Key Features and Benefits:

  • Zero Account Opening Charges: Upstox generally offers a free Demat and Trading account opening.
  • Annual Maintenance Charges (AMC): There is a yearly fee to maintain the Demat account, which is typically ₹150 per year. New users often benefit from zero AMC for the first year.
  • Hold Multiple Asset Classes: You can hold various investments like equity shares, mutual funds, IPOs, bonds, and more in a single Demat account.
  • Seamless Online Process: The account opening process is entirely online and paperless, requiring just your PAN, Aadhaar, and a linked mobile number for OTP verification.
  • Direct Credit of Corporate Benefits: Dividends, bonus shares, and other corporate benefits are directly credited to your Demat account.
  • Easy Share Transfers: You can easily transfer shares from an existing Demat account to your Upstox Demat account.
  • Automatic Updates: Bonus issues, rights shares, and stock splits are automatically updated in your account.
  • User-Friendly Platform: Upstox provides a user-friendly mobile app and web platform for easy access and management of your investments.
  • Nominee Addition: You can add nominees to your Demat account for easy transfer of holdings in case of unforeseen events.
  • Security: Upstox is registered with SEBI and follows strict regulatory guidelines to ensure the safety of your holdings. Your shares are held electronically with either CDSL (Central Depository Services Ltd.) or NSDL (National Securities Depository Ltd.), the two depositories in India.

Account Opening Process:

Opening an Upstox Demat and Trading account is a straightforward online process:

  1. Sign up: Visit the Upstox website or app and sign up using your mobile number.
  2. Verify Mobile Number: Enter the OTP sent to your mobile number.
  3. Set up PIN: Create a 6-digit PIN for secure login.
  4. Enter Email: Provide your email address and verify it with an OTP.
  5. Personal Details: Fill in your personal information.
  6. PAN and Date of Birth: Enter your PAN details and date of birth.
  7. KYC Verification: Complete your KYC (Know Your Customer) process, usually by linking your DigiLocker with Upstox, which requires your Aadhaar number. If you are KRA (KYC Registration Agency) compliant, this step might be skipped.
  8. Bank Account Details: Link your savings or current bank account for fund transfers.
  9. Live Photograph: You'll need to grant camera access to capture a live photograph as mandated by SEBI.
  10. Signature: Draw your signature digitally or upload a photo of your signature matching your PAN card.
  11. Nominee Addition (Optional): You can add up to 3 nominees at this stage or do it later.
  12. Aadhaar e-Sign: Electronically sign the account opening form using your Aadhaar OTP.

After completing these steps, your application will be reviewed, and your account will be activated, typically within a few working days. You can track your application status on the Upstox platform.

Charges Associated with the Demat Account:

  • Account Opening Charges: ₹0 (Free)
  • Annual Maintenance Charges (AMC): ₹150 per year (often waived for the first year for new users).
  • Demat Debit Transaction Fee (Selling Shares): ₹13 + ₹5.50 (CDSL charges) per scrip per debit transaction.
  • Demat + Courier Charges (for physical certificates): ₹2 per certificate plus courier charges of ₹35 per demat request.
  • Rematerialization (converting electronic shares to physical certificates): ₹25 per certificate or 0.05% of the value, whichever is higher.
  • Pledge Creation/Confirmation: 0.02% of the transaction charges (minimum ₹50) + actual NSDL/CDSL charges.
  • Pledge Invocation: 0.05% of the transaction charges (minimum ₹50).
  • Failed Transactions: ₹50 per transaction.
  • Demat Rejection Charges: ₹35 per rejection for every 500 gms.
  • Ad-hoc/Non-periodic Statement Requests: ₹25 (₹500 for foreign address) for up to 10 pages, and ₹10 for each additional 5 pages + courier/postage.
  • Cheque Bounce Charges: As determined by Upstox's bankers.

Trading Charges:

It's important to note that while the Demat account has its charges, trading activities (buying and selling) also involve brokerage and other statutory charges like STT, exchange transaction charges, GST, and SEBI charges. Upstox generally follows a flat brokerage model of up to ₹20 per order for various segments (Equity, F&O, Commodity, Currency). However, there might be percentage-based charges or variations based on the specific trading segment. Investing in Mutual Funds and IPOs through Upstox usually has zero commission.

In conclusion, the Upstox Demat Account offers a convenient and efficient way to hold and manage your investments in the digital age, backed by a user-friendly platform and a competitive fee structure. Remember to check the latest charges and features on the Upstox website or app, as they may be subject to change.

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