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Demat Account Investment 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 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 account.
Demat account is in a way a multi task account. With its help, the user does not have to keep the financial securities in physical form, rather they remain safe in this account electronically. Moreover, users can invest in different types of securities from a single account. Be it stocks, mutual funds, bonds or derivatives, users can easily buy and sell on online trading platforms through this account.
Who manages this account?
Your Demat account is managed 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 gets 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 need 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, with the aim of attracting small and retail investors towards options like stock market and mutual funds. Through this you can also invest in ETFs. To manage these accounts, you will have to pay Rs 100 plus GST every year.
The limit increases automatically and…
As soon as the amount in the basic demat account goes above Rs 2 lakh, it is automatically 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.