What is Demat account?
A Demat account is an electronic account that holds all your investments in shares, government securities, exchange-traded funds, bonds and mutual funds in one place. It enables the digitization of the stock trading market and enforces better governance.
Advantages of Having a Demat account?
Some advantages of having a Demat account include easy access to your assets and statements through online banking, dematerialization of physical documents, automatic credit of shares in the event of a company merger, bonus, consolidation etc., low transaction costs, no stamp duty and the ability to make transactions with odd numbers. Having a Demat account streamlines the entire share trading process and eliminates unnecessary paperwork. It assures maximum security and convenience for your securities.
How to open a Demat account?
Opening a Demat account is an easy process. You can start by choosing a Depository Participant (DP) to open the account with. You will need to submit your personal details like Name, Mobile, Current City and verify your mobile number via OTP. Then you will need to complete eKYC and upload supporting documentation copies of proof of address, proof of identity, proof of income etc. A PAN card is mandatory to open the account