How to Open a Demat Account: To buy or hold a share in the stock market, a Demat account is required. In today’s time you can open Demat account online also. Many apps open demat account for free.
Everyone wants to invest money in the share market, but without Demat and Trading Account you cannot bet on a single share. Demat is very important for investing money in the stock market. Just like you open an account in the bank to keep the money in a safe place, you must have a demat account to invest in the stock market.
There are many misconceptions among the people regarding Demat account. Many people believe that opening a demat account is a difficult task, some believe that it takes a lot of money. Although it is not so. If you are also wanting to invest money in share market and want to know the process of opening demat then you will get answers to all your questions here…
How to Open Demat Account
Demat account opening is very easy. Earlier, for this you had to go to NSDL Depository Participants, but now you have got many apps and websites on the internet, which will open your demat account. Many apps also open your demat account for free, but some apps or websites charge for it.
These documents are needed
To open a demat account, you have to fill a form and provide your PAN card and address proof. Apart from this, you also have to fill your bank details. Providing bank details is very important.
Once the demat account is opened, you are given the Depository Participant (DP), DP ID and Client ID. If you want to buy and sell shares then you have to open a trading account. Some depository participants offer the facility to open demat and trading accounts simultaneously.
How many demat can be opened at once?
- There is no limit to open a demat account, you can open more than 1 demat account. You can have multiple demat accounts with a single Depository Participant (DP)
- It is necessary to maintain minimum balance in Demat A/c
- It is not necessary to maintain a minimum balance in the demat account. You can also keep zero balance in this.
What can I do with Demat account?
- You can apply for IPO and NFO
- Can buy and hold shares and other securities
- Bonus, dividend, interest and maturity amount will be received directly in your account
- You can avail the facility of ‘Loan Against Shares’
- Mutual fund investments can be done through demat account only.
