DEMAT ACCOUNT OPENING
A Demat account, short for “Dematerialized account”, is a digital vault for storing investments like stocks, bonds, mutual funds, and exchange-traded funds (ETFs)
Documents required
To open a demat account, you’ll need to provide the following documents:
Proof of identity
A PAN card is mandatory, but you can also use an Aadhaar card, passport, voter ID, or driver’s license
Proof of address
You can use an Aadhaar card, passport, voter ID, driver’s license, utility bills, or a recent bank statement
Proof of income
If you want to trade in derivatives, you’ll need to provide proof of income, such as a salary slip, ITR, or a bank statement
Proof of bank account
You can provide a canceled cheque, bank statement, or passbook with your bank account details
Photographs
You’ll need to provide recent passport-sized photographs
Benefit
Security
Demat accounts are electronic, so your securities are safer than physical certificates, which can be lost, stolen, or damaged.
Cost
Demat accounts are cost-effective because they eliminate the need for paperwork and stamp duty, which are associated with physical share certificates.Convenience
Demat accounts make it easy to buy and sell shares, and you can access them from multiple devices. Time
Demat accounts are faster than physical trading, and they reduce the time it takes to transfer shares. Liquidity
Demat accounts make it easier to get money when you sell shares. Loan
You can use the securities in your Demat account as collateral for a loan. Updates
Demat accounts automatically update your account with bonus issues, stock splits, and right shares. Tracking
Demat accounts store all your documents and investment records on a secure server, so you don’t need to keep manual records. Freezing
You can freeze your Demat account or a specific type or quantity of securities in it to prevent unwanted transactions.
Nomination
You can benefit from a nomination facility if you open a Demat account online.
Foreign investors
Demat accounts have made it easier for foreign investors to access the Indian stock market.
Important information
- Get Demat Account in just 1 day