WHAT IS A DEMAT ACCOUNT? | டிமேட் கணக்கு என்றால் என்ன?

 

INTRODUCTION:

If you are a new-age investor or a recent entrant to the stock market, you may not have heard about the traditional method of holding the shares of the company. Before 1996, the shares of the company are held by the investors in the physical form (i.e. certificates, sheet papers, etc..). After the development of the Digital Era, In the year 1996, The Government of India Mandates the Demat Account for the Investors in which holdings and all securities are maintained in electronic form.

WHAT IS A DEMAT ACCOUNT ?:

Demat is a short form of Dematerialization. The term dematerialized account refers to an account in which your securities, such as stocks, shares, bonds, are held in electronic form. For the purpose of opening an account, you need to use a depository like CDSL or NSDL. Holding physical share certificates is not required.

OBJECTIVES OF DEMAT ACCOUNT:

Everyone Knows about a Bank account. It is the account where we save money for our future, and to avail the benefits of the bank. Similarly, the Demat Account is the one that holds the shares and stocks which you bought in an electronic form.

In 1996, India began the transition to a dematerialized system. In the same year, the Depository Act was passed, which permitted the formation of depositories (like CDSL and NSDL) to hold such accounts.

The first fully automated stock exchange in India was the National Stock Exchange. In 1994, the company began its operations and shortly thereafter, started offering shares in Demat forms in 1996. Today, the entire country conducts its securities market transactions via a Demat account.

ADVANTAGES OF DEMAT ACCOUNT:

1. Safer than the physical shares or certificates.
2. No need to pay stamp duty on the transfer of shares.
3. Reduces delay in settlement.
4. Securities can be held in this account easily and conveniently.
5. The forging of shares certificates is eliminated.
6. Whenever a client's address changes with a Demat partner, that information is distributed to all of the companies in which that person holds securities, so the shareholder doesn't have to contact each one individually
7. Shares are now credited to your account immediately. No need to wait for several days as before.
8. Traders can deal with shares from anywhere using this account.

HOW TO OPEN A DEMAT ACCOUNT ONLINE :

Opening Demat Account Online has become very easy nowadays, you can open your Demat account with any of the stockbrokers (like Zerodha, Upstox. Groww, etc.) or you can go to the bank that is registered with SEBI to do the same.

Every stockbroker has its own brokerage charges for opening and maintaining your Demat account. Before opening your account don't forget to know about the brokerage charges of your stockbroker.

Brokerage charges of Zerodha: click here.

Brokerage charges of Upstox: click here.

Brokerage charges of Groww: click here.

I will tell you how to open a Demat account Online with Groww App.

STEP 1:  

Install Grow App on your Android or IOS Device. Click here to Install (for Android).

STEP 2:

Log in to your Groww App using your email id or mobile number.

STEP 3:

Under the "Stocks" tab, click on "Complete setup".

STEP 4:

Click on "Open Stock Account" to proceed. Go through the brokerage charges and other charges on Groww and proceed.

STEP 5:

Enter your, Occupation, Income, Mother's and Father's Name to complete the KYC process.

Check the details you have entered and click on "Next".

STEP 6:

Enter your trading experience and click on "Next".

STEP 7:

The next step is to upload your signature. your signature is mandatory to open the Demat account.

On a plain white sheet of paper, make your signature in dark ink. Take a picture of it and upload it. Click on "looks good" if you are satisfied with the picture to continue.

STEP 8:

This step is Aadhar Based E-sign. You have to submit your aadhar number to the e-sign service and will receive an OTP on the registered mobile number linked to your aadhar. To e-sign click "E-sign AOF".

(if your aadhar is not linked with your mobile number, you have to download the AOF (Account opening form) fill it out, and send then to the given address in the app. After verification, your account will be activated.)

STEP 9:

If your mobile number is linked with aadhar, you will receive an OTP, enter the OTP and click on "Submit".

STEP 10:

Read the Demat account opening form carefully and click "Sign now" to proceed.

STEP 11:

You will be directed to NSDL electronic signature service. Enter your Aadhar number and click "Send OTP". Enter the OTP to complete the E-sign process.

STEP 12:

Now, you will see a success screen that says "Signed successfully".  followed by a screen that says "you can start investing now". Click on "Let's start" to proceed.

The verification process may take 24 hours, you will also receive a Client Master Report (CMR), which will have the details of your Demat Account Number on your registered email.

So now, you know what is a Demat Account, what are its advantages, and how to open a Demat account. Why are you waiting? Go open your account now and win instant Rs. 100 on your account by clicking here.

DISCLAIMER:-

The content of this site is only for educational purpose. I am not SEBI Registered. The motive of this site is to share my knowledge on share market to new budding investors and others who are learning about stock market

My Kind request to my site viewers, Before taking any decision please do self analysis, consult or discuss with Your financial Advisor .

மறுப்பு:-

இந்த தளத்தின் உள்ளடக்கம் கல்வி நோக்கத்திற்காக மட்டுமே. நான் செபியில் பதிவு செய்யப்படவில்லை. இந்த தளத்தின் நோக்கம், பங்குச் சந்தையைப் பற்றிய எனது அறிவை புதிய வளரும் முதலீட்டாளர்கள் மற்றும் பங்குச் சந்தையைப் பற்றி அறிந்துகொள்ளும் மற்றவர்களுக்குப் பகிர்வதாகும்

எனது தள பார்வையாளர்களுக்கு எனது அன்பான வேண்டுகோள், எந்தவொரு முடிவையும் எடுப்பதற்கு முன், சுய பகுப்பாய்வு செய்யுங்கள், ஆலோசனை செய்யுங்கள் அல்லது உங்கள் நிதி ஆலோசகருடன் விவாதிக்கவும்.