What is Demat account? How to open Demat Account free [Full Guide To Open A Demat Account]
What is Demat Account?Actually, the Demat account is used to exchange shares of companies. When there was no Demat account facility, shares were given through hard copy papers. But everything is going digital. So the share market has also started to operate digitally.
People buy shares from different companies through the Demat account. And just as money is saved in the bank account, similarly the shares are also saved in the Demat account.
It is not that you can only buy shares. You can sell shares directly online. And nowadays it has become very easy. And the most important thing is that in this whole process you have to do everything online. Through this, people have built their business in the stock/share market.
In other words, putting shares digitally saved online is called Demat. The full meaning is "Dematerialize".
Before the Demat account was invented when people bought shares, the company used to give them some documents. In which there was all the evidence that at what price the shares were bought. And whenever the shares were sold again to the company, the documents were given back to the company. The company then verified the documents by stating how much the shares were purchased and what the price is currently.
So all this process used to take a lot of time. Hence the Demat account was invented. With this help, all the work gets done easily and time is also saved. And it's a safe way.
You have nothing to do, you open your account, you will get a username and password, with the help of which you can operate the account successfully. And nowadays the account can be opened on a mobile phone only. You don't need to go anywhere.
How to open a Demat account?
How to open a Demat account on Zerodha?
Keep in mind that photocopies of all the documents are ready.
- Pan Card
- Aadhaar Card
- Two Passport Size Photos
- Cancelled cheque/saving Bank Account PassBook
#1. First, go to Zerodha's website. And fill your details.
#2. After this, you will be asked for payment. You have to pay about 300 rupees.
#3. You will then get a call from Zerodha's agent, who will come to your address to collect your signature and the rest of the documents.
#4. Your account will be started after 5-7 days of submission of documents.
How much money does it take to open a Demat account?
Benefits of Demat account
2. If you want to invest in the offline stock market, then you have to buy a lot of shares. But online, you can also do business by buying small quantities of shares. In this, you can also deal with only one share.
FAQ About Demat Account
- Voter ID
- Passport Size Photo
- Ration card
- Driving License
- phone Bills
- Electricity bills