A Demat Account is similar to the Savings Account in a bank. While they make the accessibility to our funds easy from mishandling and theft, a Demat Account does the same for investors. In modern times, it is essential for a stock investment that offers the facility of holding financial securities and shares electronically.
With increasing technological growth, people are now opening Demat Accounts digitally. It is because of them that trading has been made easier. It helps you keep all assets, securities, or cash earned in the Stock Market in your portfolio.
Importance
A Demat Account is a useful and technologically secure way of storing shares and assets. It discards the risk of damage to physical certificates, forgery, loss, and theft and helps you to transfer securities instantly. The purchased orders are directly transferred to the investor’s account once approved.
Accessibility
Access your Demat Account information by logging into the service provider’s website. It makes your trading experience convenient, giving you all the information on mobile devices. Investors can participate in the transaction process without visiting the stock exchange market. You can now open it online for free with massive technological advancements. Indulge in trading activities like buying and selling shares and investing without paying stamp duty charges.
Trading Account
You must create an online Trading Account to easily purchase and sell stocks by visiting the broker’s website. Maintain your transaction history and use it to determine your investing habits, gains, and losses.
Opening Procedure
Recently, many intermediaries have been providing a free Demat Account to investors. However, select the one with the lowest brokerage charges. Ensure the broker has a team of financial experts to help you with your investments. The following are the steps to open an online Demat Account:
Registration
For registration, you need a strong internet connection. As soon as you open the account, you get a transaction password. Store it safely as you require it for every login.
Selecting Depository
In India, Central Depository Services Limited and National Securities Depository Limited include pre-verified shares for electronic trading. Select either of them for investment.
In-person Verification
When opening a Demat Account, submit ID proof, address proof, PAN Card, and passport-size photographs to the concerned broker. An official call you to confirm every detail after successful submission. You can also opt for the E-KYC verification procedure.
Demat Account Number
You get your Demat Account number after successful verification. To access the Demat Accounts portfolios, you must enter your transaction password and this ID.
Conclusion
Demat and Trading Accounts are necessary to trade and invest in the Indian Stock Market. Follow the financial advisor’s recommendations for a smooth investment journey.
