Managing finance such as debt or equity is a tough task, but you have to perform it every day. Thanks to the depository act that makes this task easier for you. Here the role of the demat account comes.
A demat account helps you to access the benefits of trading platforms online to store the securities safely on the electronic system. In this way, the demat account is a great option to store the shares or securities instead of getting the physical copies of securities or shares.
In this article, we will provide the all-important details related to the demat account. If you want to invest in the stock market by opening a demat account, then you should read the complete article.
What is a demat account?
A demat account is a dematerialized account in which your securities, shares, bonds, and stocks are available in standardized electronic form instead of physical copies or hard copy forms.
You can easily check the debits, credits, transaction history, and balance through the demat account. The values of the securities holding are used as the collateral amount in demat account. There are no restrictions to the holdings or the values that you require to maintain the account.
Opening the demat account to make the investment in the stock market
For the investor, the process of opening their demat account is the first and initial step towards their trading journey. But make sure to start the trading; you should have your bank account, trading account, and demat account.
A demat account is a deposit account that is used to store the securities for the time when you trade. A trading account is important for making transactions. If you face trouble handling the three accounts while trading, then you can opt for the three-in-one account that offers seamless trading to you.
How to open the online demat account
The process of opening the demat account online is more convenient. This process is equipped with smartphones, desktops, and laptops, by which you can easily open the demat accounts in a few clicks. You should follow the given steps to open your demat account online with ease.
- Visit the official site to head to your preferred depository participant
- Fill out the simple registration form that asks for your name, contact number, residence, city name
- After filling in such basic details, you will get the OTP on your registered phone number
- Enter the OTP in the required field. Next, you have to enter your KYC details such as PAN card details, birth date, bank account, and contact details
- Make sure to fill the all relevant information and access your demat account
Conclusion
A demat account is the safest option to store your securities, shares, stocks, and bonds safely in electronic form. Still, it is suggested to investors to check their demat account balance to determine whether their demat accounts are fully protected from unauthorized activities or not.
The best thing is that if you have your demat account, then your DP ( depository participant ) will notify you with regular updates on emails and SMS related to the demat account activities.