Many different types of accounts are available today, ranging from savings to fixed accounts to NRI accounts to Demat accounts. What, though, is a Demat Account? Let's investigate.
A Demat Account, also known as a Dematerialized Account, allows you to keep shares and assets electronically. Shares are purchased and stored in a Demat Account while online trading, making it easier for consumers to trade. A Demat Account consolidates an individual’s interests in stocks, government securities, exchange-traded funds, bonds, and mutual funds.
An investor who wants to trade online must create a Demat account with a Depository Participant (DP). The process of opening a Demat account has been explained in this blog.
One can open a demat account through online or offline method. Here, we have provided a step-by-step process of how to open s demat account for both online and offline process.
If you’re wondering about “How to Create Demat Account Online?”, this next section is just for you! A request to create a Demat Account with any DP can also be made online. You can follow the below-given steps to open a Demat Account Online.
Let us see the Demat account opening online procedure here in detail-
After proper research and consideration, choose a safe and secure DP website of your liking and visit the website’s page.
When you arrive at the DP website of your choice, select the ‘Open Demat Account’ option and then follow the on-screen instructions.
To open a free Demat account with IIFL Securities, complete the online form. Fill out the online form with the required information such as your phone number and email address.
When you fill out your details at the start, you will receive a One Time OTP before moving forward.
Share your PAN card and Banking details. Enter your precise PAN number and the bank information you'll be using to make the transaction.
Verify your KYC information online. The KYC details you provide are checked online.
Note: In the vast majority of cases, the DP will contact you in order to complete the above-mentioned formalities and open a Demat Account.
Also, open your free Groww Demat account and follow the steps mentioned in the blog to set up your account within few minutes.
Following is the Demat account opening procedure offline-
The first step in the demat account opening process is to choose a Depository Participant (DP), which may be any licensed bank, financial institution, or broker, with whom you want to create a Demat Account. The choice of a DP should preferably be based on the brokerage fees, yearly fees, and leverage is given.
Next, you will be required to submit a duly filled account opening form with attached documents:
You will next be required to sign an agreement outlining all of the rules, restrictions, and rights connected with having a Demat Account. Read them carefully and don’t be afraid to ask questions if you have any. When you submit this to the DP, it will be signed by an authorized person and you will be given a copy.
When the account is opened, the DP will provide you with a unique Client ID. This, along with other information, will allow you to gain online access to your Demat Account.
The DP will also provide you with instruction sheets that you may use for depository services like transfer, purchase, and so on.
You are aware that earlier securities were held as papers, which made them vulnerable to theft, fraud, tapism, and displacement. However, you can hold your securities electronically if you have an online Demat account. A Demat account is still necessary for anyone who wants to trade in the stock market today. You can therefore proceed to create a Demat account now that you are aware of how you can get it done.
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