Demat Account

Demat account is a electronic book keeping system for hold financial certificate. Demar account uses  for hold financial product like shares, securities, bonds, mutual funds etc. It involves process of converting physical format to electronic format.

In 1996 stock exchange adapted technology to make easy trade for investors and traders, on same time Stock exchange were introduced demat account to reduce paper work, hold shares certificate in electronic format. Two depositories managing in India that is one National Securities Depositories Limited (NSDL) and the Central Depository Services Limited (CDSL).

Demat account is a safe system to compare old physical format. It is very convenient to hold financial certificates. Now a days we have to trade in stock market compulsory open demat and trading account.

How to open Demat Account

Demat account open through directly in NSDL and CDSL, Normally open demat account through  registered stock brokers. here easy to monitor stock portfolio, Broker will assist you to open demat account what are the document requires to open demat account. Once open demat account broker will send transaction password to access demat account. We can watch portfolio hold in our demat account from anywhere. In case company provide any bonus, dividend's it will automatically credit in demat account.

Document required for open demat account

Before open demat account compulsory we need open bank saving account and given below documents required.

1. PAN Card

2. Address proof of account holder like Voter ID, Ration card, driving licence etc

3. Id Proof issued by Government  Authority of India

4. One cancelled cheque

5. Recent bank statement

6. Passport size photos

How does it works

Once trade confirm in stock exchange, shares or securities automatically credit and debit in to demat account. In order to buy shares we have to login open demat and trading account, once we place the order, broker it will send to stock exchange. after the approved by stock exchange share certificate credit in electronic format in demat account and while selling shares it will debited from demat account.

Benefits from Demat Account

As said above demat account is easy to access anywhere through using computer, mobile application etc. For every transaction no need to carry physical certificates. Demat account easy to open account with brokers, Demat account is the best and safe way to hold security. Always we can monitor our portfolio, No stamp duty for pay transfer securities. If we have demat account not necessary visit broker office to get price update. It is a reduce cost and time to traders and investors. These documents never damage like physical certificate, it will reduce paperwork.