Most people wonder what a Demat account is. They think it’s something different, but the Demat account is entirely similar to the bank account. Almost everyone has a bank account or even more than one bank account. Just like that, you can have multiple Demat accounts too.
Most probably, you will ask, what is the difference between both accounts. There is only one difference between them. Bank accounts hold money, whereas Demat accounts hold people’s securities like bonds, stocks, and debentures. 
What Is A Demat Account?
The dematerialized account is an electronic account that holds the securities you can buy and sell on a stock exchange. This account serves as an excellent alternative to the physical statements. For an investor, it is necessary to create a Demat account with a Depository participant (DP).
Depositories are an organization that carries securities in electronic form for transactions. Generally, two central depositories are registered with SEBI: National Securities Depository Limited (NSDL) and Central Depository Services Limited (CDSL). They act as a middleman between depositories and investors, and thus to deal with depositories, you need to have a Demat account. Therefore, if you want to start investing, open Demat account online.
Advantages Of Demat Account
Besides holding your securities securely, providing safe transactions, and acting as a convenient platform to track everything, a Demat account has many more benefits. Some of these benefits are:
# It is considered the best alternative to physical certificates.
# It charges less transaction cost in comparison to a physical transaction. This is because you don’t have to pay the stamp duty anymore.
# Easily transferable due to reduced paperwork.
# No risk against thefts, fake certificates, and no delivery options.
# Even one stock or a small sum of money can be traded online.
# Everything gets perfectly aligned in one place, eliminating the risk of losing stocks by losing papers.
# Everything automatically gets updated, whether buying or selling shares or even investing in mutual funds.
# It records all your bonuses and dividends.
Documents Required For Opening Demat Account
Several brokers in the market allow users to open Demat accounts with zero account maintenance charges and charge very little for intraday trading. Thus to get registered with them, you must have certain documents while opening a Demat account. They are:
# PAN Card (proof of identity)
# Aadhaar Card
# Voter ID Card (it must contain a valid photograph)
# Passport (Alternative identity card)
# Income certificate (proof of income)
# Bank account
# Electronic signature
# A clear photograph of yourself
Process To Open Demat Account
The process of opening the Demat account is fully digitalized. In just 15 to 20 minutes, you can open your Demat account and quickly start Online Stock Trading. So to open your Demat account, follow the following steps.
1. Get registered with a depository participant (DP)
2. Open the account opening form,
3. Fill the form with provided details by DP and the KYC details.
4. Enter the name, PAN number, phone number, etc.
5. Enter the address and details of a bank.
6. If a subscription is asked to choose, select it according to your preferences.
7. Now, upload the proof of address and identity and whatever documents are asked for.
8. Upload the KYC document, and record a short clip of yourself for in-person verification.
9. Sign the form digitally and enter the OTP sent on the Aadhaar registered mobile number.
10. Now preview the form thoroughly and submit it.
Once the account is opened, every detail you fill in will be sent to you in your mail. You will also be provided with the user ID and password, which you must never forget.
Types Of Charges
A Demat account levies several charges. So, you must know about the different types of charges you would have to pay while having a Demat account.
# Opening Charges – At the time of opening, various brokers charge opening fees.
# Maintenance Charges – The stockbrokers charge it to maintain your account annually.
# Off Market Transfer Charges – If you want to transfer your purchased shares or stocks from one Demat account to another, the broker will charge you with transfer charges.
Once you are done with these things, you are eventually set for trading in the stock market. So start doing the research, get enough knowledge and know your requirements. Once you are done with these things, choose a broker and open a Demat account and start trading without any delay.
