Demat Account in India

Demat account, Dematerialised account, is the prime requirement you want to start purchasing and selling securities online like stocks, gold etfs, mutual funds, etc. Even though investors have the option of receiving securities either in demat or physical (non-demat) mode, it would be better if you opt for receiving your securities in dematerialized form. It is because holding securities electronically means you don't have to deal with the negatives of possessing securities physically.

Bank account and a Demat account have a lot of resemblance. A demat account is meant for holding securities just the way a savings bank account is supposed to hold money. Other than that, a periodic statement for all the holdings and transaction done in that duration is also given by your Depositary Participant (DP) just as you get a passbook or a bank statement from a bank.

Open a Demat Account for Online Trading

Online trading enables you to trade during the stock market hours no matter what your location is. And online trading cannot be carried out without having a demat account and an online trading account.

Demat account opening is a very simple process. Just approach a DP that is registered with SEBI, the regulator of Indian Stock Market to open Demat account. A depository participant can be defined as an intermediary between depositories, like NSDL and/or CDSL, and an investor. Depository services are currently being offered by all stock broking houses, as well as several banks and financial institutions. Demat account has to be opened while registering with a share broker or a sub-broker.

There are just 4 simple steps for demat account opening:

 

 

 

 

Features of Demat Account with Trading Account

It is highly recommended (if possible) to open an online trading account along with demat account. You will be able to do following thing once you have a demat account and an online trading account.