A Demat Account is a repository for storing shares in electronic format. Demat Account is necessary for online trading in India. Demat Account can be opened through a depository participant, or simply stated, a broker. Depositary participants facilitate creating Demat Accounts. Depository participants are linked with the depositories. CDSL and NSDL are the two depositories in India that store the dematerialized shares. A Demat Account provides a safe and secure medium to hold your shares.
In the era before digitization, shares were issued as paper certificates. Transfer of shares involved dozens of paperwork and posed security risks, delayed processes, added hassle and inconvenience. With a Demat Account, all such nuances are eliminated. Today, you can safely store all your shares at one place in a Demat Account and access it anytime, from anywhere. Opening a Demat Account is simple and can be done in a few easy steps at the comfort of home without any paperwork.
You need to approach a broker and check the account opening charges, the brokerage rates andDemat Annual Maintenance Charges (AMC). Once you have settled on the choice of broker, next, you have to fill online account opening form that requires you to furnish necessary details like, name phone number and address. Following this, you have to upload your documents, such as PAN Card, and the documents for identity and address proof.
Finally, you can e-sign your form using Aadhar e-sign. In this step, you receive an OTP on your mobile number registered with Aadhar. Once OTP has authenticated your form is complete, and your broker will update you with your account details. Your Demat Account will have a unique account number, and you can log in to it using the credentials shared by your broker.
