Demat Account is an account where you keep track of all your securities and financial data’s like shares, digital gold etc. We buy and sell securities and other financial instruments in the stock market. With a Demat account, all the needful physical certificates are changed to digital format. It is a safe and modern way to keep track of the data of total securities and holdings. Another great advantage of having a Demat account is that the certificates, transactions, and exchange records will not consume space as physical paper documents and there is no risk of rip up or wet, or dilute.
Demat account participants, Unique Identification, the opening process
Any Individual who is trading or wants to get started in any stock market investment instruments should have a Demat account. Including a Demat account, we need a person that can make a proper interface between the buyers(investors/traders) and the central depository.
3 things involved in the DEMAT account
- Depository Participants is the agent or stockbroker, allowing the traders and investors to use Demat account services and the accessibility to buy or sell shares.
- In India, two depositories activated by SEBI are NSDL and CDSL verify that the stockbroker is registered with any of the two.
- Unique Client ID is also given to the investors.
First 8 digit- Depository Participants
Next 8 digit- Unique identification of investors for trading
Simpler roadmap to open Demat account for stock trading
- To step into the share market trading activities the first thing an individual investor has to search for authorized Depository Participants or stockbrokers. You can use any online trading app to access the trading services and features.
- Go to the website to make the registration for the trading account and Demat account.
- Upload the scanned copies of identity proof, KYC, PAN card, bank account statement, annual earning slip, photos, and others address details.
- Go for the mandatory step to verify the process of ‘In-person Verification’. either you can be present in the DP’s office or go online with your smartphone or Webcam.
- Read the terms and conditions carefully of the agreement.
- DP will forward your documents to approve the Demat account. After that, you will get your Unique BO ID so you can easily trade and access the account.
Important Document to get a Demat account:-
- Identity Card, Adhar Card, Pan Card with photo,
- To verify your residential address you can submit any of the following documents:
Voter ID, Driving License, lease agreement, Passport, Telephone Bill, House maintenance bill, Electricity Bill, Ration card, Gas, Bank Passbook.
- Salary Slips, Bank account statements.
Go online and check the prices of various companies or stockbrokers.