When you start your investing journey, you are likely to find that the first thing you do is open a Demat account. A Demat account is one of the most common ways of holding your shares, securities, and bonds. However, you may look for the best ways to open a Demat account. We bring you this guide that lists detailed steps on how to open a Demat account.
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What is a Demat Account?
Demat accounts are also known as dematerialized accounts. A free Demat account is an electronic way to keep track of your stocks, bonds, and mutual funds. You can use it to buy and sell shares of stock, as well as see how much money you have and when it will be available for use. A Demat account is also a digital depository account. Instead of storing paper certificates in a safe or a vault, you can store them electronically.
Documents Required for Opening a Demat Account
Here are the various documents required to open a Demat account.
- Identity proof
PAN Card, Aadhaar Card, Voter’s ID, Driving license.
- Residence proof
Driver’s license, electricity bills, telephone bills, lease agreement, gas bills.
- Bank account proof
Bank account statement or bank passbook less than three years old.
Steps Involved in Opening a Demat Account
Here are the steps you need to follow when opening a Demat account.
- Fill out the account opening form and submit it to the DP for review. Ensure that you add all the details to prevent your application from getting rejected. You will have to provide all the mandatory details, including contact numbers and bank account details.
- Attach the relevant supporting documents with your application. You will have to provide your identity, bank account, and residence proof.
- You will also have to finish the e-KYC process. Once you finish it successfully, you will receive a unique Demat account number that you can use to begin your trading journey.
Advantages of Opening a Demat Account
Here are the various benefits you can avail of when you open a Demat account.
- Paperless transactions
A Demat account helps you avoid the lengthy process of paper filing. You can transfer shares from one broker to another by simply providing them with your share certificates. When the shares get transferred electronically, there is no need to file any documents.
- User experience
The user interface of a Demat account is easy to use and understand, making it ideal for first-time investors and experienced traders. You can also use this account for online trading or investment analysis. It will help you get better returns on your money while keeping track of its performance.
You can open a free Demat account with a Depository Participant (DP) like Choice India. Furthermore, the trading charges are minimal and at par with other stockbroking service providers. All these aspects make the Demat account a favourable option for traders and investors.
The most obvious benefit is security. When you open a Demat account, you can choose between physical and electronic delivery of your shares. The latter protects you against theft or damage to physical certificates. In addition, electronic delivery allows for faster processing times.
Since you do not have to physically visit a stockbroker’s branch to deposit or withdraw money, you can access your funds anytime, anywhere, and at any time through electronic transfers. This saves you considerable time and effort, which you can instead invest in trading shares.
You can open a Demat account through any Indian stockbroker. But, if you want the easiest process, you can open a Demat account with Choice India. We have a seamless process that you can finish within minutes. Visit the account opening section now to know more details.