Why Every Indian Must Have A Demat Account

  •  2 min
  • 0
  • 08 Feb 2023

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

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

  • 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.

  • 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.

Also read:

How to read trends in stock market indices

All you need to know about demat accounts

Make better investment choices with Mutual Fund Research

SEBI guidelines on buyback of shares

Enjoy Zero brokerage on ALL Intraday Trades
+91 -

personImage