Demat Account

You must have heard the word demat, if you haven't heard it, first of all know its meaning, that demat means de-materialized, it means without any paperwork. And a demat account means a paperless account that is used to buy and sell any securities (stocks) and is stored electronically in our demat account in our name. When we buy shares, do we buy directly from the company? So the answer is no. There are depository participants in the middle who have full access to our accounts, where they can buy or sell stocks for us. We also call Depository Participants in other languages as Bokers. They are only intermediates acting as brokers between the investors and the depositors.

Need of Demat Account

In the earlier times, the buying and selling of shares was done in physical form, which was also a long process, every time it had to be bought and sold in physical format. Due to the arrival of demat account, this process has become very short now, we have come directly from physical format to electronic format, you can do all these things with just one click.

Just as buying shares is possible with a single click, the process of depositing funds in demat account has also been made very easy, only you have to link your bank with that demat account which is added at the time of creating demat account, and it is mandatory for everyone to have.

  • Is demat account safe?

  • Yes absolutely. It is very safe, your money cannot go anywhere from that demat account without asking you, then you can rest assured, there is no need to panic, there is only one charge which the broker takes from you as AMC is nothing but annual maintenance charge.

    As we told, this account has become paperless due to de-materialization, it is an advantage in itself. The paperwork that people used to take time was also reduced by this, the broker only wanted our data, he would get it through demat account.

    The ups and downs in the shares that keep happening day after day, the worry has reduced because you can keep an eye on the shares you have bought or the portfolio you have created, anytime and anywhere, this is also a task for you has become easy.

    Right now there are some such brokers that provide you a lot of different facilities apart from just buying and selling shares like mutual funds, government bonds, exchange traded funds and ipo which is called initial public offering.

  • Documents Required :

  • you must have your Aadhar card, PAN card and bank details with you which should be linked to your mobile number.

    Account Opening Procedure