In the last few years, there has been a big change in the way of investment methods. Common investors are now turning to the stock market along with investment options of banks, post offices etc. Things have become more dynamic with new technology. In today’s time, e-commerce is gradually becoming the preferred option and the same is true for the stock market. Given the work you do every day, it is not easy to manage finances like equity or debt. A major change in the direction of making an investment in the market easy and convenient was through the Depository Act 1996. It has made managing your financial securities as easy as a few clicks for everyone. Instead of obtaining physical copies of shares or other securities, he got the facility of keeping them in a Demat account in digital form. A Demat account helps you take advantage of an online trading platform where you keep your financial security on a standardized electronic system.
What is a Demat account?
A Demat account is like a bank account. The only difference is that it is electronically linked to stocks rather than cash. The Demat account uses the concept of dematerialization for its operative function. Dematerialization is the process in which physical share certificates are converted into electronic form. In this way, a Demat account is like a ceiling under which the investor uses technology to collect all the shares. These include government securities, mutual funds, shares, bonds, etc.
How to open a Demat account online?
- First of all, go to the official website of your favourite Depository Participant (Broker).
- Fill out the simple lead form, in which you provide your name, phone number and residence information as asked. You will then receive an OTP on your registered mobile number.
- Enter OTP to get the next form. Fill your KYC details like date of birth, PAN card details, contact details, bank account details etc.
- Now your Demat account has been opened. You will receive details like Demat account number on your email and mobile.
An investor can have multiple Demat accounts. It can be with the same depository participants (DPs), or with different DPs. As long as the investor can provide the necessary KYC details for all applications, the applicant can operate multiple Demat accounts.
(Source: Angel Broking)
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