Easy access to stock markets using technology, such as e-KYC and e-signing, attract more retail investors. It is easy to open an account that allows investors to grab available opportunities in the stock market. You may be amazed by the benefits of a demat account that includes safe transactions, protection against bad or fake deliveries, fast processing, a quick view of all your securities at one place, and others.
With the introduction of online demat accounts, 99.9% of trading transactions in the stock markets are completed online. The foremost reason is the convenience to open a demat account. India’s capital market regulator SEBI has stated that the number of people dabbling in stocks has increased to a record high in 2021, led by easy demat accounts and the ongoing pandemic.
More and more people are taking advantage of demat accounts to enter the stock market and its various investments to grow their funds. Let us start the post with conceptual clarity.
Demat Account Meaning
A demat account is an online account that facilitates investors participate in the stock market. It acts as a safe online depository to hold investors’ different types of securities they own in the stock market. Each and every trading transaction in the demat account takes place under the surveillance of SEBI.
The financial securities that a demat account can hold include shares, mutual funds, derivatives, exchange-traded funds, bonds, government securities, and many others. All financial securities you buy in the stock market gets credited to your demat account and debited when you sell them.
A demat account can be a basic service demat account (BSDA) to hold securities of up to Rs. 2 lakh value or a regular demat account that allows you to invest without limiting the maximum investment value.
How stockbrokers help you to open a demat account?
A stockbroker can be either be an independent individual, brokerage firm or an individual employed at a brokerage firm. A stockbroker is familiar with all the formalities to create an online demat account as per the latest instructions or reforms by SEBI.
With the rising demand for demat accounts, discount stockbrokers offer the best demat services at the best possible price to stay competitive, thus benefiting investors. You can open a basic demat account for free of cost. Stockbrokers follow all safety measures laid by SEBI in the interest of investors.
Easy Steps to Open a Safe Demat Account Online
Opening a demat account is mandatory to invest in the stock market. Go through these easy and quick steps to know ‘how to open demat account’ online.
Step 1: Choose a stockbroker offering a free basic demat account and regular demat account at the most affordable costs, with offers such as waved-off annual maintenance charges (AMC) for the first year.
Step 2: Access the online demat account opening form at the official website of the chosen stockbroker.
Step 3: Enter your PAN details and input your registered mobile number.
Step 4: Enter the personal and bank account details to register with the broker.
Step 5: Upload KYC documents after scanning them clearly or take a clear pic.
Step 6: Record and upload a video of yourself for in-person verification.
Step 7: Let your stockbroker verify your details and documents.
Step 8: Once verified, receive your demat account number and login credentials.
You are done with opening a demat account. Start investing in the capital market like many others quickly. One of the supportive reasons for the long jump in new demat accounts is the shift of investors from traditional to alternative investment options like stocks. You can also stay invested and allow your funds to grow with informed decisions.