Investing in shares and equities in physical form is quite a tiresome task. The process is lengthy, a lot of paperwork is involved and the risk of fraud is too much. Not to forget, your securities might get lost or stolen. As a result, online trading has become very popular among investors. In order to trade online, there are some basic requirements that you must address. One such requirement is that you need to open a Demat account.
What is a Demat Account?
Short for dematerialized account, a Demat account is a place where all your equities, shares and securities are held in an electronic format. Dematerialization is the process of converting your physical securities in an electronic form. That way, your securities will be safer and easily accessible from anywhere around the world.
A Demat account is crucial for online trading. It is eerily similar to a bank account. Just like deposits are held in a bank account, a Demat account has shares that can be credited/debited in a similar fashion. It can be opened without possessing any shares and can function on a zero balance as well.
How to Open a Demat Account in India:
Follow these easy steps to open a Demat account:
- Do proper research and pick a Depository Participant (DP) with whom you’d like to open your Demat account. A DP acts as an agent for the depositories like NSDL and CDSL.
- Contact the DP and fill out the account opening form. Submit the required documents such as proof of identity, address proof, PAN card, etc. Carry the original documents along with their photocopies.
- You’ll be provided with a copy of the terms of the agreement and the amount you need to pay.
- An in-person verification will follow where a representative from the DP would contact you.
- After the verification and successful completion of the application, you’ll be given a client ID also known as Demat Account Number. You can use this number to access your Demat account anytime.
- Log in to your account and start trading.
Demat Account is a vital part of online share trading. You need to open a trading account as well to take part in online trading. Once you’re all set up, you can offer trade using a mobile trading app. All this is quite straightforward with little to no hassles.
You can open a Demat account with Motilal Oswal to attain multiple benefits. The whole process is quite easy, highly economical and takes about 15 mins. You can also invest in Mutual Funds with Motilal Oswal as it has the best app for mutual fund investment. So, start investing with Motilal Oswal and earn great profits.