What is a Demat account?

A Demat Account is an account that permits the trader to hold their stocks (shares) in an electronic form.

Shares in Demat account stay in dematerialized structure. Dematerialization is the development of converting physical stocks into an electronic system. A Demat account number is needed to allow electronic settlements of all the stocks investors. Demat account role as like a bank account, where trader hold your capital and individual entries are completed in bank passbook. In a comparable structure, securities too are held in electronic structure and are withdrawal or credited consequently. A Demat account can start with no balance of stocks. You can contain a zero balance in this account.

As it is tricky to hold shares in physical structure because it engages a set of paperwork, long procedure and risk of false shares. So, for easy and seamless trading and investment, Demat account is must buy and sell on India’s stock exchanges With Free Stock Trading Tips Or Free Nifty Trading Tips. Even though the Securities and Exchange Board of India (SEBI), has permitted trades of up to 500 stocks to be settled in physical structure but this option is not preferable additional. This account holds the certificates of financial tools like shares, bonds, mutual funds, government securities etc. So, it engages the procedure of converting physical stocks into electronic structure and credited to trader’s Demat account.

Following are the credentials which are needed for opening a Demat account:

• PAN Card
• Identity Proof
• Proof of Residence (acceptable documents includes electricity bill, phone bill, ration card, driving license etc.)