A demat account is an account that holds your investments in electronic form. It is similar to a bank account, but instead of holding money, it holds shares, bonds, and other securities. Demat accounts are held with banks, brokerages, or depository participants (DPs).
If you want to invest in stocks, mutual funds, or exchange-traded funds (ETFs), you will need to open a demat account. Even if you want to buy government securities such as bonds, you will need a demat account or Best Demat App.
A demat account is an account that holds your shares and securities in electronic form. It is similar to a bank account, but instead of holding money, it holds investments like stocks and mutual funds. A demat account is required to trade in the stock market.
Why do you need a demat account?
There are many benefits of having a demat account:
-It is convenient: All your shares and securities are held in one place, so you can easily track your investments.
-It is safe: Your shares and securities are stored electronically, so there is no risk of them being lost or stolen.
-It is efficient: You can buy and sell shares quickly and easily using a demat account.
In order to be eligible for a free demat account, you must meet the following criteria:
-You should be an Indian resident.
-You should have a PAN (Permanent Account Number) card.
-You should be above 18 years of age.
Documents required for a free demat account.
The following documents are required for a free demat account:
-Bank account statement or canceled cheque leaf
-Income proof (if applicable)
How to open a free demat account.
Opening a free demat account is simple and can be done online in just a few minutes. Here’s how:
1) Visit the website of any SEBI-registered broker or depository participant (DP).
2) Fill in your personal details like name, date of birth, address, etc.
3) Enter your bank account details and PAN number.
4) Upload the scanned images of your Aadhaar card, PAN card, and bank account statement or canceled cheque leaf.
5) Once all the documents are uploaded, you will need to sign the application form electronically using your Aadhaar OTP (one-time password).
6) After signing the form, submit it online and wait for your DP to approve it.
7) Once your DP approves the form, you will receive an activation link on your registered email id and mobile number.
8) Click on the activation link and log in to your newly created demat account using your user id and password.