Important Details You Must Know About How to Make a Demat Account

Opening a Demat account is the first basic step towards trading in the Stock Market.

Most people believe it’s a very tedious and difficult process just like understanding the stock market.

On the contrary, it is very simple and anyone can do it easily.

But what is meant by a Demat account?

De-mat is nothing else but a short form of dematerialization. In the initial years of the stock market, buying and selling was a physical process, wherein shares were a physical asset. But with the advancement of technology, this process became online and the shares became an electronic representation of the physical asset. This account is just like a wallet or a bank account where you can see the electronic representation of your money.

A Trading account on the other hand is again like a savings account only. To be able to trade in stocks and shares you need to have a Trading account, because through this account only you will do transactions of money to buy shares.

It is important to have a Demat account to be able to hold your shares. You can do Intraday trading only if you do not have a Demat account. Intraday means buying the share or stock in the morning and selling it off in the evening, even if it translates into a loss. Hence, there is no point in having a trading account without a Demat Account.

Opening a Demat account is not rocket science. Let’s go through these steps to understand how to create a Demat Account.

A DP, or a depository participant, is chosen which is the bank or the broker through which you are going to open your account.

Fill up an account opening form and a KYC form by submitting these documents

• Pan Card

• Identity proof like Adhar card or Driving Licence

• Address proof like Electricity bill

• Cancelled cheque

• Bank statement or salary slip

• A passport size photograph

An In-Person Verification will be done to check if it's you who is doing the process. Earlier it would involve an official coming to your home. Now the same process is done by giving access to the WebCam.

Read the instructions carefully provided in the copy of rules and regulations provided by the DP before signing on the dotted line.

You get the unique Client ID in the end. Make your password and you are ready to log in to your Demat Account.

With the help of these simple steps, you can very easily create your Demat Account.

So without further ado, create your Demat Account and join the force of 6.9 crore investors in India.