What is a Demat account?

A Demat account is a repository where your shares are stored. It is not an account through which transactions take place. For trading in shares, you must open a trading account along with a DEMAT account. After buying the shares through the trading account the shares will get automatically transferred to your DEMAT account after 2 days.

How to open a Demat account?

Before opening a DEMAT account, select a depository participant with whom you want to open your DEMAT account. You are required to fill up the account opening form and attach the documents required:

1. Proof of Identity
2. Proof of Address
3. PAN Card
4. Passport-Sized Photographs

Next, you need to carefully assess the details of the copy of the rules and regulations and terms of the agreement. Verification will be carried out and an executive from your depository participant will contact you and verify the details provided in the opening form. Once the application is processed, the DP will provide you with an account number or client ID. You can use the details to access your DEMAT account online.

Why invest in Demat and trading accounts?

• Safety: Physical share certificates can be misplaced, lost, or destroyed, whereas dematerialized shares do not carry such problems.


• No Paperwork: Shares are stored electronically and require no paperwork, thus increasing the speed of transactions.


• Ease of Transaction: Since the trading and the Demat account are linked to your bank account, transactions take place easily.


• Buy and Sell Quickly: You can promptly buy and sell shares. Since shares are held in electronic format, you can trade anytime, anywhere.