How to open a Demat account online - Step by step procedure to open Demat
Let's find out how to open a Demat Account in India if you plan to trade or invest in the stock exchange.
Demat is an abbreviation for dematerialization. It is an account in which securities are kept electronically. A demat account is required for any investor who wants to trade in the stock market. It functions in the same way as a bank account, except that securities are electronically stored. You only need to open a demat bank account.
Steps to open a Demat account
- You must select a depository participant on the depositories' websites to open a demat bank account. National Securities Depository Limited and Central Depository Services Limited (CDSL).
- Please fill out the account opening form.
- PAN card
- Aadhaar card
- Cancelled cheque
- Statement from the bank
- A copy of the rules and regulations, as well as the terms and charges you will be subject to will be given to you.
- A person-to-person verification would be done.
- Your DP will give you a demat number and a client identification to access your account during account processing.
Note: A demat account can still be opened and maintained with a zero balance
Demat account features:
- Convenient. Demat accounts have made it easy for traders and investors to work from anywhere.
- Time Saving: Another advantage of Demat Accounts is its speed. Trading and transferring shares takes less than a month, whereas it used to take around a month.
- Lowers risk: Electronic securities holding eliminates physical document risks like theft, loss, and forgery.
- Lowers costs: The demat accounts have reduced the physical effort required to trade and hold securities. This has resulted in a reduction in related charges. There is no stamp duty on transfers of shares in demat.
- Easy operation: With demat account, many tasks such as address changes can be performed quickly and without the need to contact companies for personal information.
- Easy monitoring & tracking: Demat account makes it easy for investors monitor their investments and track the investment's growth. Investors can also view the statements and track their investments.
- Smooth Management: Demat account manages the growing volume of trades and encourages more stock market participants due to the ease of use.
- Multiple accessing options: Demat accounts can be accessed from any location using multiple accessing methods, such as mobile, tablet, and web.
- Speed e-facility: As NSDL, users can send instructions slips electronically instead of delivering physical copies. It has become easier and more efficient.
- Company benefits and actions: If the company offers any corporate benefits, they are automatically available in the demat accounts.
Investing in different securities has become easy, quick, and safe thanks to demat accounts. Investors have access to all transactions, statements, and documents. With a unique login ID, password and fingertip access, investors can see all transactions, documents, statements, etc.
The process of opening a Demat account is very simple and straightforward. There is no minimum initial balance or holdings.