You might have heard of demat account from someone, may be in television, school, college etc. Before we get into this, let me ask you one question Where do you store your money? Absolutely..! The answer is “Bank” Same if you want to hold shares of companies or other securities in electronic form that’s where “Demat Account” comes forward.
Demat Account is an account used to store shares and securities in an electronic form its also known as dematerialisation account. You can hold Such as stocks, mutual funds, bonds, exchange-traded funds (ETFs), etc. in a demat account.
Let’s Understand with an Example:
You want to buy Shares of Reliance Industries. When you buy those shares they will transfer to your demat account under your name. During earlier times physical shares certificates got issued under investor name by stock exchange and this involve lots of paperwork. But now this whole process is migrated to electronic form so when your purchase your shares they get transferred to your demat account and stored in electronic form. This Ensures Investor safety and trust for longer duration
So When you buy shares same get credited to your demat account and when you sell those shares they get debited from your demat account. Your all Stocks and securities Stored in demat account actually held with National Securities Depository Ltd (NSDL) or the Central Depository Services Ltd (CSDL) they are known as Depositories responsible for managing portfolio of investors. Account number issued by CDSL carries a 16-digit numerical value, and NSDL issues a 16 digit numerical code preceded by ‘IN’.
Through which you can make your buy sell transactions of stocks and securities. Without Depositary participant it’s not possible to deal with stock exchange.
How and Where to open Demat Account ?
Opening a demat account is quite simple, nowadays you can open it online. To open it first you have to select your depositary participant.
I recommend to go with Upstox, its India’s fastest growing discount broker with 1 Million+ Clients. To know more refer to this article.
Step 1: Fill the account opening form
Step 2: Submit documents
Step 3: Finish the in-person verification (IPV)
Step 4: Get an account number/ID
Steps to Open Demat Account
- Click Here to Signup for Demat Account
- Provide your email ID and Mobile
- Provide PAN Number (Compulsory)
- Provide Other kyc details
- Upload kyc documents
- Esign it with Adhaar otp and you are Done
What documents are required to open demat account?
- Proof of address (Ration card/Passport / Rent Agreement / Recent Electricity or Telephone Bills)
- Proof of identity (Aadhaar Card/Passport/
- Driver’s License)
- Bank Statement or Cancelled Cheque
- PAN CARD
- Photographs and Signature
Learning is an never ending process you can start your journey of stock market by just opening your demat account. if you are interested in opening demat account We are recommending you best Discount Stock broker, To open your free demat account just click the link mentioned below or CLICK HERE