A savings account is often just your first step towards financial security. If you want to grow your wealth, you’ll need a demat account too.

Related: Reactivating your dormant demat account

What Is A Demat Account?

A demat account is somewhat like a bank account. It is an online account that holds your share certificates or securities in digital form.

How To Open Demat Account

• Select the DP with whom you will open the demat account.
• Fill out a demat account opening form.
• Submit the form to the DP along with a passport-sized photograph and copies of the required documents.
• Carry all original documents for verification.
• An in-person verification will take place thereafter.
• On approval of the application, the DP will send you the client ID and account number. Related: Demat account for minor

What Can A Demat Account Hold?

Demat accounts hold more than just shares. They also store bonds, mutual funds, non-convertible debentures, exchange-traded funds, and gold in the demat form.

Demat accounts are thus suitable for all kinds of investors. Plus, they are convenient and safe.

Benefits Of Demat Accounts

• One-stop shop for holding all securities in your portfolio
• Quick and convenient transactions
• Accessible from anywhere
• No stamp duty
• Direct communications with depository participants (DPs) and companies
• Reduced paperwork
• Greater safety than with physical certificates

Related: Features of demat account

What The Future Holds

The government has approved a proposal for creating a national database of academic certificates. Soon, even academic marksheets could be issued in the demat form. So, the usefulness of demat accounts in India is likely to increase.

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