Demat Account

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Demat Account

Demat Account

 

A demat account allows investors to hold their shares in an electronic form. It is a replacement for holding and trading in physical share certificates, which involved a lot of paperwork. As most of the transactions are now online, an investor can trade conveniently with demat account. The Securities and Exchange Board of India (SEBI) requires everyone who wants to trade Indian securities to have a demat account. That means demat accounts are absolutely mandatory, and a person without a demat account is not allowed to conduct securities trading in India.

Here are the steps to open a demat account :

Here are the steps to open a demat account :

 

Step 1: Select the Broker to open the demat account. This can be a bank which offers in-house online trading services or any online brokerage platforms.

 

Step 2: Fill up the account opening form and submit it with copies of the required documents and a passport-sized photograph (Online as well as offline).

 

Step 3: Read the rules, regulations provided and pay the associated charges.

 

Step 4: After this, Broker staff may contact to check the details provided by the client and will match with proofs provided.

 

Step 5: Once the application is processed, the broker may provide a demat account number and a client ID. These details can be used to access the account online.

The benefits of demat account are as follows :

The benefits of demat account are as follows :

 

  • Easy and convenient way to hold securities.
  • Safer than paper-shares.
  • Reduced paperwork for transfer of securities.
  • Reduced transaction cost.
  • Automatic credit into demat account for shares arising out of bonus & Split.
  • A single demat account can hold investments in both Equity and Debt instruments.
  • Traders can work from anywhere (e.g. even from home).