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What is a Demat Account?
Today, a variety of accounts are available, such as savings, fixed deposits, NRI accounts, and Demat accounts. But what exactly is a Demat Account? Let's explore.
A Demat Account (Dematerialized Account) allows you to store shares and other investments electronically. When you buy shares through online trading, they are held in your Demat Account, simplifying trading activities. This account consolidates your holdings in stocks, bonds, mutual funds, ETFs, and government securities.
To trade online, an investor needs to open a Demat Account with a Depository Participant (DP). The process for opening one is outlined below.
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Disclaimer: Investment in securities market are subject to market risks, read all the related documents carefully before investing. For detailed disclaimer please Click here.
Frequently Asked Questions
- Regular Demat Account: For Indian residents who trade in stocks.
- Repatriable Demat Account: For NRIs to transfer funds abroad. Needs an NRE bank account.
- Non-Repatriable Demat Account: For NRIs but funds can’t be transferred abroad. Needs an NRO bank account.
The process is fully paperless. You need:
Proof of Identity:
- PAN Card
- Passport
- Voter ID
- Driving License
Proof of Address:
- Passport
- Voter ID
- Lease or Sale Agreement
- Driving License
- Utility Bill
- Bank Passbook
- Demat Account: Holds securities electronically.
- Trading Account: For buying and selling securities in the stock market.
- Demat + Trading Account: Combines holding and trading securities in one account.
Anyone living in India with valid proof of identity, address, and income can open a Demat account to buy and sell stocks and other investments on Indian exchanges.