What is Demat Account and its uses
What is Demat Account Only through a Demat account, people can buy and sell a share in the share market? To open this account, you must have a PAN card. If you do not have a PAN card. So you cannot open a Demat account. To know about a pan card, in our post what is a pan card?

A few years ago when you used to buy share of any company. So those companies used to send you some paper related to those shares. Those papers were proof that you have invested in that company and can buy share in that company.
But everything has changed since the arrival of the Demat Account. Friends, in this post today, we are going to tell you the What is Demat Account and what is its use. Let’s see that What is Demat Account and its uses
Demat full form
Demat full form | Dematerialized / Anything that cannot be touched. |
Demat account Meaning
A demat account in the share market means an account in which nothing is touched. This can be a Share Mutual Fund or a security.
Most people use demat account to keep share. This is something like the way money is in your bank account in the form of balance .
What is Demat Account?
Demat Account is used by people to buy and sell share. Like we keep our money in the bank account. Exactly the same people keep their share in demat’s account .
Whenever we withdraw money from our bank account, then we meet people in physical form. But as long as they are in the bank. This is a type of digital currency.
Whenever you make payment anywhere from Debit Card, then they also use Electronic Money Transfer meaning Digital Payment. Similarly, when we share in Demat’s account, we can digitally transfer them to another person’s Demat account. In such a situation, we do not need to keep the shares of the physical.
Shares digitally means electronically placed facility is called Demat. Demat full form is “ Dematerialize “. Securities means the process of converting shares and etc into physical form is called dematerialization.
As we told you that in the old times, whenever you used to buy any share, the company used to send you documents related to that share. That was the proof that you too have invested in share.
But whenever you sold that share, first of all he used to go to the office of the document company. It was seen by the company that when you sold the share. Then what was his sentiment and according to that, you used to get money.
It used to take a lot of time to process. And there was Complex as well. Hence most people did not invest in share.
But much progress has been made in today’s time. As soon as you buy a share, it comes to your account shortly after. And if you sell any share, then its money is given to you in a short time.
Nowadays you do not even need a computer to buy and sell shares. You can do all this from your smartphone.
You need Password to access Demat account and for transaction you have to enter transaction password.
How to open your Demat and Trading account in Zerodha?
Zerodha requires some required documents to open a Demat and Trading account .
These documents are required
Zerodha requires the necessary documents to open a Demat and Trading account . Before applying for Demat Account , I should have photo copy or e-copy of all these documents ready.
1. Pan Card
2. Aadhaar Card
3. two passport photos
4. Cancelled check or Savings PassBook
How to open Demat Account in Zerodha?
Below you have provided information about the step to open demat account in Zerodha. Which you follow.
Step 1: Zerodha’s website .
Step2: Then you will see the option of “Open an Account”. Click on it.
Step 3: A form will appear in front of you. In that, you have to fill up everything like your full name, mobile number and email id. After filling the
Step4: form, something like this will be the Call me option show. Click on it.
Step 5: You will get a call from Zerodha Local Representative and sign the account opening form and book a time to meet with you to collect the document given by you. .
Step 6: You have to pay a fee to open an account using Net Banking or card. Whose information will be given by Representative.
Step 7: After submitting the document, your Demat and Trading account will be opened in four to seven days .
How many rupees does it take to open a Demat Account?
If you are thinking that you will have to spend a lot of money to open a Demat account. So this is wrong. You can easily open your Demat Account from ₹ 300 to 700 ₹ and also start investing in shares.
To open a demat account, you only have to spend 300 or more rupees. But to run a demat account, the DP charges you a variety of fees. There are different fees for everything. This fee may vary from company to company.
Fees are the first to be charged in this. So here is the account opening fees.
After this, the fees charged for managing the account are Annual Management fees. The company takes this fee at the beginning of the company and manages the account throughout the year and looks after it.
The Custodian fees are dependent on your share number. Dependent on the fee period of the company.
Transaction fees means that whenever any share is exchanged in two Demat account. So the company charges a fee for that. That fee can be according to the share number or their price.
If you are new in the market then you will be advised that you must get help from a broker before investing.
Demat account Who will open
Two institutions are working to open a demat account in India. The first NSDL (National Securities Depository Limited) and the second CDSL (Central Securities Depository Limited) .
These depositories have more than 500 agents. It is called depository participants. Its job is to open an account. And it is also called Dp.
It is not necessary that the DP should be any bank. And only she can open a demat account. Apart from this there are also many Institutions. Which can open a Demat account. Some of these are Institutions sharekhan, india infoline etc.
You can open an account by going to the office of these or you can open the house with the help of Demat account Online internet. This process is very simple. But to open it, PAN card is mandatory. Make sure to keep this in mind.
Benefits of Demat Account
Demat account has many benefits, below some benefits of the demat account are explained.
1. After purchasing shares through Demat Account, there is no possibility of them getting stolen or fraudulent because all the shares are in electronic means of digital means. It is safe because of the very low risk involved in it.
2. Earlier, it used to take a lot of time to move the Shares. Sometimes it used to take several months. But now it is not so, you can immediately transfer from Demat accounts. And shortly after sending it, it has been sent to the Demat account. Starts appearing in his account.
3. Earlier it was very difficult to sell shares, you had to sell the share only in a group. With this, you could not sell an odd number of shares. But now it is not so. You can also purchase a single share through a demat account.
Now you open a Demat account. So you can nominate the account individually. It was not like before that there used to be a certificate for share.
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