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SBI 'Power Demat' account: Features, benefits, charges and other details

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State Bank of India (SBI), the country’s largest lender, offers a ‘Power Demat account’ – a 3-in-1 account which is an integrated platform of savings bank account, demat account and online trading account.

SBI 'Power Demat' account: Features, benefits, charges and other details
State Bank of India (SBI), the country’s largest lender, offers a ‘Power Demat account’ – a 3-in-1 account which is an integrated platform of savings bank account, demat account and online trading account. While the savings account is held with SBI, the demat and online trading account is held in the books of SBI Cap Securities Ltd.
SBI is a Depository Participant registered with both National Securities Depositories Limited (NSDL) and Central Depository Services Limited (CDSL) and is operating its DP activity through more than 1000 branches.
Here are the features of SBI ‘Power Demat’ account:
As opposed to the earlier form of dealing in physical certificates with delays in the transaction, holding and trading in demat form has the following benefits:
Account Maintenance and Safe custody:
Facilitates maintaining security balance in electronic form
Dematerialization: Facilitates converting physical share certificates into electronic balances.
Rematerialization: Facilitates converting the electronic balances to physical (share certificate) form.
Account Transfers: Facilitates delivery/receipt of electronic balances consequent to market/off-market trades.
Pledge/Hypothecation: Facilitates blocking securities balance of borrowers in favor of lenders for obtaining loans/advances against shares.
Initial Public offer: Facilitates faster and direct credit of security balances into DP account on allotment through public issue of companies
Disbursement of corporate benefits: Facilitates faster and direct credit of security balance into DP account on account of non-monetary corporate benefits as bonus and rights issues.
Security Lending: Facilitates earning extra income on dematerialized holdings by the way of securities lending.
In terms of the directive of SEBI, existing SBI demat account holders are eligible to opt for Basic Services Demat Account (BSDA), subject to the following conditions :
  • All the individuals who have or propose to have only one demat account where they are the sole or first holder.
  • Individuals having any other demat account/s where they are not the first holder will be eligible for BSDA in respect of the single demat account where they are sole or first holder.
  • The individual will have only one BSDA in his/her name across all depositories.
  • The value of securities held in the demat account will not exceed Rs 2 lakh at any point of time.
  • All BOs opting for the facility of BSDA, will have to register their mobile number for availing the SMS alert facility for debit transactions.
  • The charge structure shall be on a slab basis as under:
    • No Annual Maintenance Charges (AMC) will be levied, if the value of holding is up to Rs 50,000.
    • For the value of holding from Rs 50,001 to Rs 200,000, AMC of Rs 100 will be charged.
    • If the value of holding in such BSDA exceeds the prescribed criteria at any date, SBI will levy AMC as applicable to regular accounts (non- BSDA) from that date onwards, which is Rs 400 per annum (Rs 350, If the account statement is to be sent by email), according to SBI.
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