What is a Demat account Full explained how to open a Demat account [2020]


What is a Demat account.

As you know, I had told you about the stock market in my previous article, in which we had known what is stock or share market and in today's post, I am going to share very important information related to the share market. Because in this article today I will tell you what is a demat account and how and where you can open a demat account.

So to get complete information related to demat account, please read this post completely.

People who do not know about share market Whenever he hears about demat account, his mind gets a thought that maybe it will be like saving or current account opened in the bank.

Yes it is similar to a bank account but there are some differences in it and demat account. For example, we use banks account to deposit money or make transactions. But we use demat account to buy and sell stocks and store them.

So let's get to the point without wasting time. And know what is a Demat account.

What is Demat Account.


A Demat account is an account in which the shares of all the companies you have purchased and important information related to them are stored in it.

And you can handle this Demat account through your computer on the Internet and you have full rights to these accounts. You can sell the stored share in them whenever you want.

And the second important thing is that Demat accounts are not opened by any bank or in the bank. Because this account is opened by DP (Depository Participant) companies.

Now I think you may have come to know what is a Demat account and what is its use. Let us now know how to open a Demat account.

How To open A Demat Account.


I have told you below a few simple steps how you can open a demat account, then you read these steps carefully and follow them to open a demat account.

How to open a Demat account.
How to open a Demat account.

this info image credit goes to Kotak Mahindra bank


First of all, you have to select a DP company in which company you want to open your account. And for your information, let me tell you that there are more than 15 thousand registered DP companies in India. but popular one is Angel broking and Zerodha

After that you have to visit the official website of that DP company or visit its nearest branch and go there and fill the demat account account opening form

After this, you have to submit a your important document here. For example, you have to carry PAN CARD, AADHAAR card and other important documents so that your verification can be done.

Now you have to complete the in-person verification. The DP company agent will come to you and check the documents you have submitted. And in-person verification or what we also call KYC. Will complete this process.

After completing all these steps, you will be given the id and password of your demat account. Which you can use to handle your demat account.

You have to pay something for a demat account, which is called Annual Maintenance Tax. And you do not have to maintain any kind of minimum balance in your demat account.

conclusion


So I hope you will like the information provided in this post. If you liked this information. Then do share it and comment below how do you like it.

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