19 comments

  • Mohit

    I got a great link to make a comparision between DPs from NSDL's website,

    https://nsdl.co.in/about/dps.php

    https://nsdl.co.in/downloadables/excel/A-M_DPs_Charge_Structure-March%202014.xlsx

    https://nsdl.co.in/downloadables/excel/N-Z_DPs_Charge_Structure-March%202014.xlsx

    Can you imagine, there are 693 DPs in India! Anyway, my question is, there are brokers like Muthoot Securities (at 441th position in the A-M list), they charge 20 per instruction. So, if I purchase/sell share worth Rs. 1 lakh in one transaction, will they still charge just 20 rupees? Again, there are many DPs which claims that buying: NIL, selling: 10 rupees or similar! Are they legitimate?? 

    • Good to know this Mohit. Yes even I heard that they do not charge while buying, but while selling they charge. I am analysing a list now about this expected to post an article in coming 1-2 weeks time. This would be mostly about top stock brokers for demat account and their charges

  • Gogou

    Hello,

    Very informative and hope acquiring this knowledge would hep me in my future investment.

    However, my question is ” What is cost of per share ?

    And which would be better ICICI Direct or HDFC Securities ,if I want to get in Stock and Mutual Fund ?

    • Gogou, Cost of per share has 2 components. One is share price available in market and second is transaction charge to acquire such share. You should be checking about stock brokers who would be charging less transaction charges. You can open any of the ones indicated by you, however both charge high transaction charge unless you are regular trader. I would publish an article in coming weeks indicating lowest brokerage stock brokers list.

  • Srinivas sastri

    Dear Suresh

    Many thanks for the crisp description of the subject. Look forward for such articles.

    Also, what is your opinion about equity market now, if I am looking for a horizon of 5 years plus? Which ones would you suggest as asset creations

    thanks in advance

    regards

    srinivas

  • Naveen Jain

    Suresh ji please also elaborate on strengths & weaknesses of various DPs, risk associated, how to mitigate the risk, tips for safety etc. Can there be a common DMAT account for equity and mutual funds, FD etc. In the budget 2014-15 FM has made some announcement.

    • Thanks Naveen. If you can help me to put in “Suggest a topic”, I can do that. Every week, I am picking up from there and posting relevant articles useful to readers.

  • Sivakumar

    Thanks for the detailed explanation Mr. Suresh. Its simple and easy to understand. I liked this article. 

    But I have a small confusion about the purpose of Trading account. Because, Demat account is for keeping shares electronically, then what will be in the trading acc?

    • Trading account is to buy and sell shares. If you go to bank, you see “Cashier” who gives money and takes money from account holders. But there is is locker inside bank. Demat account is like locker, whereas “Cashier” is like trading account. All transactions would happen thru trading account. You may have many cashiers (trading accounts with ICICIdirect or HDFC Sec or Sharekhan etc.) but you can have one locker i.e. demat account.

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