Everyone has ever heard the name of a Demat account What is a Demat account, how many types are there? Open Free Demat Account Online and Offline. What are the types of Demat accounts and what are their benefits? All of you use many types of bank accounts in your daily life. But have all of you used Bank Demat Account?
If you all invest money in the share market then you all would know about it. If you are a new investor in the share market, then you must definitely take information about it. Because without Demat account you cannot invest in share market. Because to buy shares from the share market, it is mandatory for you to have an account in it.
This account is similar to your bank account, the way you deposit money in your bank account. In the same way, your shares are kept in the Demat account. This account is required to buy & sell shares in the share market. Because of the amount you invest in the share market, your money remains safe in it.
When the stock market started, all the work was done on paper. But the cases of fraud in it were increasing day by day. Which people’s money was not completely safe in it. Some people used to steal these paper documents or do fraud by making fake paper documents. In view of all these problems, changes were made after a few years.
After this, the exercise of keeping it in digital form started. After that, all the fraud work stopped and all the investor’s shares became safe. The advantage of this account is that the investor does not face any difficulty in investing in it. Now we know what is Demat account, how to open an online & offline account.
What is a Demat Account?
An investor can buy and sell shares through a Demat account. According to the instructions of SEBI, this account should be there to buy and sell shares. The full form of SEBI is The Securities and Exchange Board of India. The way people deposit money in the bank, in the same way, you can keep your shares safe in this account.
A Demat account is called an electronic account in another way. The full name of Demat is Dematerialize but everyone knows it as Demat. The full form of Demat is Dematerialised.
A few years ago, when you used to buy shares, the company used to send you the documents related to the shares. And if you want to sell shares then you had to submit documents. That document was proof that you have invested in the share market. It does not get to know about the ups and downs in the share market and your time is also bad.
In today’s time, many new technologies keep coming every day. It also invented Demat in the field of the share market, which does not take much time to buy and sell shares. If you sell a share, then money gets into your bank account in no time. And you can get information about it daily share.
The investor does all the work in the share market with the help of this account only. PAN card is mandatory to open an account in this. If you want to open an account in this, then you must have a PAN card.
Benefits of Demat Account
You all know this thing that to invest in the share market, it is necessary to open an account in it. There is a question in the mind of many people that what is the benefit of opening an account for investing in the share market. Now we will know what are the benefits of opening a Demat account.
- You can buy and sell shares easily. With its help, there is no problem in buying and selling shares.
- Share this is completely safe. The possibility of share theft or fraud is negligible.
- The Demat account also enjoys security like bank lockers.
- With the help of this, you can also put the share on hold.
- The best thing about this is that it does not require paperwork.
- The investor does not have to pay any stamp duty and transaction cost
- Through this account, you can buy and sell shares from anywhere in the world.
- It is easy to maintain your securities in dematerialized form.
- In this, there is no charge for the transferor transaction of shares.
- The transfer facility is very easy after the death of the account holder.
Documents for Opening Demat Account
As we all know, to invest in the share market it is mandatory to open an account in it. If you all want to open your Demat account then you may need these documents.
- PAN Card
- Ration Card
- Aadhar Card
- Voter ID Card
- Driving License
- Bank Passbook
- 2 passport size photo
- Canceled Check
- Electricity bill
- Income tax return
If all of you have all these documents then you can open an account.
How to Open Demat Account
A few years ago, there was no advanced technology in the country, at that time people used to open offline accounts. But in today’s generation, all people open online accounts. But today we will know about two how to open online and offline accounts.
How to Open Demat Account Online
If you want to open all online Demat accounts, then for that you have to follow the steps given below.
- To open an online account in demat, you have to visit the website of any broker.
- Now you have to enter your email ID and password.
- After that, you have to click on the “Open a Demat Account” button.
- After that, a new window will open in front of you. In that, you have to fill in all the details asked in it.
- In the details, you have to fill in your name, PAN card for address proof and bank details, etc.
- After this, you have to upload a scanned copy of all the documents to open the account.
- After this select the segment in which you want to trade and submit the account opening fee.
- completion of all this process, you will get login id and password on your registered email id.
- Now you can log in to the demat account with that ID and password.
- By following all these steps, you can open your account on Demat.
How to Open Demat Account Offline
If you want to open all offline Demat accounts, then for that you have to follow the steps given below.
- To open an offline account, you have to contact the DP (Depository Participant) who is a broker or sub-broker of NSDL (The National Securities Depository Limited) or CDSL (Central Depository Services (India) Limited).
- To open an account, you will have to photocopy some documents for form, proof of identity, and proof of address.
- After that, you have to sign a Power of Attorney (POA) agreement. Which gives details of the rights and duties of the investor and the DP.
- After that, the Depository Participant will open an account and give you the Demat Account Number. It is also called BOID (Beneficial Owner Identification Number).
- For stockbroker records, you will also be assigned the Client ID.
- All your investments in securities will be credited to this account. If you sell your securities, your demat account will be debited.
- By following all these steps, you can open your account on Demat.
Zerodha Document List
To create a Demat account with Zerodha, you will need the following documents. Before applying for the account, make sure to have photocopies of all these documents.
- pan card
- Cancel check
- Income proof
- Aadhar Card
- Passport size photo
- Your signature on paper
How to Open Demat Account in Zerodha
Now we will know how to open a Demat account in Zerodha, for you have to follow the steps given below.
- First of all, you have to go to the official website of Zerodha.
- After that, you have to click on Open an Account and you have to fill in all the details given in it.
- After that, you have to fill in all the details given in it like mobile number, name, and email id. and After filling in all these details click on ‘Call me.
- You will get a call from Zerodha local representative. You will have to tell the time on the call when you can get to him.
- He will visit you to sign the account opening form and collect the documents from you.
- After that, you will have to pay the account opening fee by using net banking or a card to open the account.
- After submitting all the documents, you will open the account with Zerodha and for this, it takes one week.
- By following all these steps you can open your Demat account on Zerodha.
Demat Account Banks
If you want to open a Demat account from the bank, then for that you can open your account in these banks.
- ICICI Securities Ltd.
- State Bank Of India.
- HDFC Securities Ltd.
- Axis Securities Ltd.
- Kotak Securities Ltd.
To open this account, the bank charges you a fee and all the banks have different charges. Along with this, you also have to pay the fee for the Demat account. To open an account, you have to pay Annual Maintenance Fees, Protective Duty Fees, and Transaction Fees.
Types of Demat Account
Now we know how many types of Demat accounts are there there are three types of Demat accounts.
- Regular demat account
- Repatriable demat account
- Non-repatriable demat account
Regular Demat Account
Regular Demat accounts are needed by the people living in India. This account is for those people who deal in equity shares. All the shares that the person buys are stored in it. Shortly back (SEBI)The Securities and Exchange Board of India has released a new type of Demat account. Which is called (BSDA) Basic Services Demat Account.
Repatriable Demat Account
This type of account is for those people who are Non-Resident Indians (NRIs) in India. It allows the transfer of money outside India. Such an account requires a Non-Resident External (NRE) bank account.
Non-Repatriable Demat Account
This type of account is for those people who are Non-Resident Indians (NRIs) in India. It does not allow the transfer of money outside India. And in this, you must have an NRO bank account linked to the Demat account.
How Much Money take to Open a Demat?
Now we know how much it takes to open a Demat account. Very few people know how much money it takes. But let me tell you all that it costs you 500 to 700 rupees. But some people think that it takes a lot of money. You can invest in the share market by opening an account in it.
If you open an account through any bank, then you get different charges in it. Because all the banks have different fees. Although it takes 500 to 700 rupees to open an account, there are many types of fees in DP (Depository Participant).
Who Opens a Demat
As I have already told you that two organizations work to open Demat accounts in India. NSDL (National Securities Depository Limited) and CDSL (central securities depository limited). More than 600 agents work in these two organizations, their job is only to open the account. They are known as DP (Depository Participant) in the share market. It is not that these two organizations open this account, apart from this there are some organizations that open this account.
Demat Account Login
Click on this link to login Demat account.
I sincerely hope that all of you have liked today’s article. Today we have got complete information about what is Demat. And how to open an online and offline account in Demat. How to Open Demat in Zerodha has got complete information about it. To know the complete information about what is Zerodha, definitely read the next post.
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