A demat account acts as a critical tool to keep all your investments safe and secure. It enables you to trade quickly and easily. With a demat account, you will not incur the different risks and challenges that come with physical share certificates. If you are willing to invest in the stock market, you must open a demat account. In the early days, investors used to hold share certificates in physical form. It was challenging to carry out share trading in those days.
In 1996, the National Securities Depository Limited (NSDL) came into the picture to get rid of these limitations. They have brought the concept of the demat system to provide the facility of storing shares and other securities electronically. If you have any physical shares, you can convert them to electronic forms using your demat account. It is known as ‘’dematerialization. In contrast, if you are willing to convert your electronic records into the physical format, then you can do it through the process of rematerialization.
A demat account allows you to hold your investments across different securities like bonds, equity shares, mutual funds, exchange-traded funds (ETFs), government securities, etc. A demat account works similarly to a bank account. Your bank account allows you to store your money in digital form, while your demat account allows you to keep your investments in one location. With an online demat account, you will be free from unnecessary paperwork. Instead, you can execute share trading more efficiently and profitably.
Two depositories, National Securities Depository Limited (NSDL) and Central Depository Services Limited (CDSL) maintain all of the demat accounts in India.
Just like one can store cash in electronic form in the savings account, an investor can store securities in the demat account of a depository participant (DP) associated with the NSDL or CDSL. After you purchase shares, they will be credited to your demat account, and funds will be deducted from your bank account. In contrast, after you sell shares, they will get debited from your demat account, and funds will get credited to your bank account. Therefore, you must link your savings account to your demat account and trading account.
If you are looking for a convenient and hassle-free process to open a demat account, you must submit essential documents.
Mentioned below is a list of essential documents that you will have to submit when you are about to open a demat account.
Proof of identity with a photo
- Aadhaar card
- PAN card
- Voter ID card
- Driving license, etc.
Proof of residency
- Registered lease agreements
- Driver’s licenses
- Landline telephone bills
- Electricity bills
- Apartment maintenance bills (if applicable)
- Copy insurance
- Gas bills, etc.
- Proof of bank account
Submit the passbook or statement of the bank account you use. It must not be more than three months old.
- Proof of Income
Payslips or taxes. It is essential for the currency and derivatives segment.
One of India’s leading stockbroking firms, Share India has been offering its customers financial products and services in the financial industry for more than 20 years. Share India has expertise in delivering top-notch technological solutions. With a demat account on Share India, you can access a wide variety of investment options, IPOs, derivatives, equities, commodities, etc., with daily and weekly reports where you will get daily and weekly reports. Smart trading requires you to have well-planned trading strategies. So you can build a well-diversified portfolio and achieve consistent long-term growth in your investments.
Benefits of Opening a Demat Account with Share India
Here are the following benefits of a demat account With Share India.
Safe & Secure Trading
With Share India, you will get a safe and secure environment to trade and invest in a variety of financial assets. The platform is designed in such a way that you will get safety and security in all aspects of trading activities on Share India.
The Share India platform is well-equipped with state-of-the-art technology like Artificial Intelligence (AI) and Machine Learning (ML) technology so that investors can execute effective trades with efficiency.
Share India was the first to introduce the concept of Algo trading. As a result, you can execute multiple trades without worrying about human errors and make high yet quick profits in the stock market.
From account opening to every trading activity in India, you must go through a paperless process. That means completely digital trading. However, it is easy and quick to open your demat account online using your laptop, desktop, mobile, etc.
It is completely free to open a demat account on Share India. So you will not have to pay AMC charges in the first year of opening your demat account. Plus, there will be quality trading at a low cost with Share India.
How to Open a demat Account With Share India?
If you are looking to open a free demat account online, you must follow the below steps.
- You must visit the Share India website at https://www.shareindia.com/
- Click on ‘Open demat account’ on the right top of the website
- Provide your email & phone number
- Go through the KYC verification.
- Scan & upload your PAN Card & Aadhaar Card.
- Complete e-sign & Confirmation
- Complete e-Sign Aadhaar using OTP.
- Add the details of whom you want to add as a nominee