Holding shares and securities and other instruments, you need to have an account and this account is called a Demat account. Today is my topic is how to open a Demat account online.
First you should understand the Demat account and related topics to it.
One Demat account gives you many facilities to avail like share and securities trading, currency trading, commodity trading, mutual fund trading etc.
In our country, it is mandatory to have a Demat account, if you want to trade in shares, securities, commodities, and other instruments.
Converting or dematerializing your physical shares in the electronic format and the account where these dematerialized shares are kept, is known as Demat Account.
With one Demat account, you can do many thing with this.
In this account, you can keep shares, bonds, mutual funds, commodities, and exchange-traded funds, etc.
A Demat account is like a bank account where money debited or credited when it is withdrawing and depositing, the same way here shares are debited and credited every time when you buy or sell the shares.
Demat eliminate paper work fully and the managing your portfolio very easy and convenient.
Buy or sell shares any point of time in market hours. You also can choose your desired price at which you wish to buy or sell.
You can do intraday trading in shares, commodities and currencies.
You get recommendations for buying or selling shares, commodities, and currencies by which you can earn a lot of money.
Keep in mind that trading in shares is risky so, take the advice from your investment adviser before making any decision.
In the initial days, shares were held in a physical form by way of share certificates.
However, it made the entire process of share trading cumbersome and difficult to carry out at short notice.
There were also issues of share certificates being fakes or forged. Certificates were also often lost or physically damaged.
In order to eliminate these limitations and problems associated with physical shares, the National Securities Depository Limited (NSDL) was established in the year 1996.
NSDL brought in the concept of Demat accounts, which could be used to electronically store shares and securities of companies.
Have physical shares? you need to convert them to electronic records before being able to use a Demat account.
This process of conversion is what is commonly known as dematerialization.
The process of dematerialization is simple and requires very little effort on your part. By following the steps below, you can easily convert your physical shares into electronic form.
The first step to open a Demat account with a depository participant (DP) like ICICI Direct. A depository participant is an entity that acts as an intermediary between you and the depository (either NSDL or CDSL).
Once your Demat account is active, you need to send a duly filled Demat Request Form (DRF) along with your physical share certificates to your depository participant.
Your depository participant will then process your request by sending your share certificates back to the company.
In addition to this, your DP will also send a request to the company’s appointed Registrar and Share Transfer Agent (RTA) via the depository.
Upon approval of the request, the share certificates are destroyed by the company and a dematerialization confirmation is sent to the depository.
The depository relays the dematerialization confirmation to your depository participant and subsequently credits your Demat account with the relevant number of shares.
There so many depository participants(DP) are available in the market and offer online service to open Demat account.
But here, I am recommending the best DP and this is ICICI Direct. ICICI Direct is the best for a Demat account in all aspects.
To open Demat account with ICICI Direct just click here. You will see the window.
For sighning up, enter your mobile number and click get OTP.
After clicking “Get OTP”, you will see a window asking your details about yourself.
Fill in your details carefully and it is done. Now your Demat account is ready to trade or invest in.
If you need any assistance please comment and I will get back to you with a solution.
Thanks for being here and visit again.
I think this “How to open a Demat account online” article will help you out to make the decision to choose the best Demat account.
You should also read this : What is a Demat account?
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