<P> Some of the additional features (usually offered by banks) are as follows . Some DPs offer a frequent - trader account, where they charge frequent traders at lower rates than the standard charges . Demat account holders are generally required to pay the DP an advance fee for each account that will be adjusted against the various service charges . The account holder needs to raise the balance when it falls below a certain amount prescribed by the DP . However, if the holders also hold a savings account with the DP, they can provide a debit authorisation to the DP for paying this charge . Finally, once choosing a DP, it would be prudent to keep all accounts with that DP, so that tracking of capital gains liability is easier . This is because when calculating capital gains tax, the period of holding will be determined by the DP, and different DPs follow different methods . For instance, ICICI Bank uses the first in first out (FIFO) method to compute the period of holding . The proof of the cost of acquisition will be the contract note . The computation of capital gains is done account-wise . </P> <P> Indian Banking System First, an investor has to approach a DP and fill up an account opening form . The account opening form must be supported by copies of any one of the approved documents to serve as proof of identity (POI) and proof of address (POA) as specified by SEBI . An investor must have his / her PAN card in original at the time of opening of the account (mandate effective from April 1, 2006). </P> <P> All applicants should carry original documents for verification by an authorized official of the depository participant, under his signature . Further, the investor has to sign an agreement with the DP in a depository prescribed standard format, which details rights and duties of investor and DP . DP should provide the investor with a copy of the agreement and schedule of charges for their future reference . The DP will open the account in the system and give an account number, which is also called BOID (Beneficiary Owner Identification number). The DP may revise the charges by giving 30 days notice in advance . SEBI has rationalised the cost structure for dematerialisation by removing account - opening charges, transaction charges for credit of securities, and custody charges vide circular dated January 28, 2005 . </P> <P> To open a Demat account you have to provide documents which fulfill the requirements of KYC (Know Your Customer) norms . You have to sign a contract with Stock broker . Generally the documents are: </P>

The dp will open investors' account in the system and give an account number which is