Open Demat Account: Know the procedure on how to open Demat account along with the documents required for Demat account in India.
It was in 1996 that Indian markets switched over to Demat accounts. Before that stocks and shares used to be exchanged via physical receipts called certificates, which involves lengthy paperwork and takes up a lot of time. Demat accounts — which allows the investor to hold securities in an electronic form — let the investor buy and sell as well as transact not only shares and stocks but other products conveniently without the need of any sort of paperwork. A Demat (shortened form of dematerialised) account holds all the investments an individual makes — be it in shares, exchange-traded funds, bonds and mutual funds, etc. — in one place. If one wants to invest in stock markets it is the primary and utmost requirement that he open a Demat account. It makes the entire process of share trading easy, secure and speedy.A Demat account works the same way as a bank account. When shares are purchased your money gets deducted and vice versa. You can open a Demat account without possessing any shares and can maintain a zero balance in your account. The charges of Demat account depends on the volume held in the account and the type subscribed. and the terms and conditions laid by the depository and the stockbroker. There are two depositories who manage Demat account: National Securities Depository Ltd (NSDL) and Central Depository Services Ltd (CDSL).
A Demat account, also known as Dematerialised account, allows people to invest in stocks and shares and hold them in an electronic format. It works much like a bank account. The only difference is that a bank account holds money, while the Demat account holds shares and other securities.Opening a Demat account is quite simple. An investor just needs to register himself/ herself with his/her preferred broker, either online or offline or both.
One needs to fill up an application form to open a Demat account and submit it along with the relevant documents. Once the form and details furnished by the investor are scrutinised, the person receives a unique client ID and account number with which he/ she can start investment online.Investment platform — Groww allows willing investors to open a Demat account online. Below is the step-by-step guide to open a Demat account with Groww:
Step 3: Provide the relevant details including occupation, income, and complete the KYC processStep 4: Verify the details provided before clicking on the Next button to proceedStep 5: From the drop-down list, enter the trading experience and tap on the Next tabStep 6: Complete the online application form for a DEMAT account. Make sure that the mobile number you mention in the form is the same as that on your Aadhaar cardStep 7: Upload all the documents in the required format. Also, provide scanned signature along with the formStep 8: Once done, you will get an OTP/ security code on the Aadhaar-linked mobile numberStep 9: Carefully read the Demat account opening form and agree to the terms and conditions of the facilitatorStep 10: Finally you will see a screen stating, “Signed successfully”. You will then see a screen that will mention that you can start investingStep 11: Tap on Let’s Start button to proceed