Why We Love Demat Account Online (And You Should, Too!)

Whenever you think of investing in stocks or trading in share market the first step that you take is opening a Demat Account. A Demat account keeps all your financial securities at one place in electronic form. So, if you are going to invest in securities such as shares, mutual funds, bonds, etc. you must have a Demat account.

The Demat account involves electronic storing of shares and securities which are maintained electronically. India adopted this system to mitigate the risk associated with paper shares. Therefore, the real motive behind the Demat system is to eliminate troubles due to paper certificates and make the system easier.

Let’s open a Demat account online!!

There are a few simple steps that you need to follow while opening a Demat account online:

• Step 1. First, select where you would like to open a Demat Account then select the Depository Participant, you would like to open Demat account with. Most brokerages and financial institutions offer the service.
• Step 2.Then fill up an account opening form and submit along with copies of the specified documents, and a passport-sized photograph. You also need to have a PAN card. Also, for verification, original documents are required.
• Step 3.You will be provided with a copy of the rules, and regulations, the terms of the agreement, and therefore, the charges that you will simply incur.
• Step 4.During the process, an In-Person Verification would take place wherein a member of the DP’s staff would contact you to check the details provided in the account opening form.
• Step 5. You will be provided with a Demat account number and a client ID once the application is processed. You can access your Demat account online by using these details.
• Step 6. Now you are a Demat account holder, and you would need to pay some fees as the annual maintenance fee levied for maintenance of the Demat account and the transaction fee — levied for debiting securities to and from the account on a monthly basis. In addition to this, you will have to pay some charges for converting the shares from the physical to the electronic form or vice-versa.
• Step 7.Minimum shares: A Demat account are often opened with no balance of shares. It also doesn’t require that a minimum balance be maintained.