Open Demat Account
Many of you have heard the term Demat account but there are only a few of you who know what the term actually implies.
The Demat account was first introduced in 1996, which has erased the process of trading and investing in the Indian stock market.
What is a Demat Account
Demat simply means dematerialisation which is the process of converting physical shares into an electronic form.
The sole purpose of opening a Demat account is that it eliminates all the risks associated with holding securities in physical form. Also, it gives you the facility to trade online which was not possible in the past and
In simple words, a Demat account is an account where you can hold and trade the financial securities in a dematerialised form.
Importance of Opening a Demat Account
Opening a Demat account authorizes investors to trade and hold their financial securities more conveniently.
Also, it allows them to access their Demat account using a laptop or mobile phone. However, monitoring your shares in physical form is quite a tedious task as compared to dematerialised form.Hence, it is important to open Demat account as it holds great importance in several cases. Some of the reasons why the Demat account opening is important are discussed below:
Demat Account Is Extremely Safe:
Earlier, the shares were stored and traded in a physical form which was a difficult task as there was always a risk of being stolen or misplaced.
However, with the advent of Demat accounts, our investments and transactions are much safer because the extra layers of security, regulations associated with such accounts make Demat accounts the safest way to hold the shares.
Mandatory For Trading
It is impossible to trade in the stock market without having a Demat account. This is because stock trading is only done electronically and hence if you want to buy or sell shares of a company that is publicly listed, you must have a Demat account to carry out any transactions.
It is a must to settle trades in an electronic form on any stock exchange.
Multiple Securities in One Account
You probably maintain separate accounts for different financial products such as mutual funds, debt securities, equity which are quite difficult tasks.
With a Demat account, you can preserve multiple accounts into a single account as it helps you to keep a track of all the financial products in the same account.
Relatively Lower Costs
Earlier, there were multiple additional costs such as stamp duty and handling charges when the shares used to be traded in physical form. However, with the advent of Demat accounts, all the additional costs have been eliminated.
How to Open a Demat Account with Minimum Hassle?
Procedures for Opening a Demat account is fairly simple and requires minimal paperwork. Only you need to go through the procedures of the Demat account and you are ready to go.
Here is the step by step guide:
1. Fill out the Demat Account Opening Form
Fill up the Demat account form. You need to fill in the information given in the Demat account form such as your address, mobile number, email id, account number.
Also, you need to have a passport size photograph, identification proof such as a PAN card and some documents to verify.
2. Complete KYC form
After successful completion of a Demat account form, the next step is to complete your KYC (Know your customer)form.
3. Finish the in-person Verification
Once you have submitted the Demat account opening form, your depository participant may require in-person verification in which a representative of DP will call you to verify all the details you have submitted in the documents.
Post verification process, you are required to sign an agreement that includes all the responsibilities and rights of a DP.
4. Get Demat Account Number
Once you have done with all the above procedures, the DP activates your Demat account.
Tips To Choose The Best Demat Account for Trading
Do check whether the account maintenance charges are reasonable or not
Many Demat accounts deduct annual maintenance charges whether you make transactions or not. Hence, it is suggested to check out the additional charges involved with the Demat account and choose the reasonable one.
Do a quick enquiry regarding the account opening process
The process of opening a Demat account should be easy, fast and hassle-free. Do check that a Demat account works as per SEBI guidelines or not.
The smooth interface in terms of transactions
Demat account also served as a trading account, hence it is advisable to check whether the interface is smooth or not.
Demat accounts with a seamless interface provide easy transactions such as the transfer of money from a bank account to a broking account during sales and purchase of shares.
Why Open Demat Account with Swastika?
Swastika is one of the oldest stockbrokers In Indore and the most trustworthy stock brokers in India.
At Swastika, you will get seamless trading and investment platforms for both the biggest Indian stock exchanges - NSE & BSE.
The swastika is a SEBI registered stockbroker and is a corporate member with NSE & BSE.
Secondly, it offers the best services for expert traders as well as beginners in stock trading.
Swastika - Best Stock Broker of India
One thing that made Swastika different from another stock broker, is it has customisable low brokerage plans tailored to your requirements.
In addition to this, Swastika gives you the highest limits so that you can start trading with less amount.
Opening a Demat and trading account with Swastika just requires your PAN card, Aadhar card, Bank statement and 5 minutes of your time. The entire process is online and paperless. You can click here to start your online account opening process.
Swastika’s personalised relationship managers will get in touch with you to assist you with the entire process whenever required.
After you submit your online application, it just takes 2 working hours for our team to process your application.
We claim to be the fastest stock Broker in India in terms of time to open a Demat and trading account.
Post opening Demat account, Swastika enables you to start trading on the same day as you can transfer your existing shares online within 24 hours from your old Demat account to your new Demat account with Swastika.
Once you open your account, our relationship manager will assist you with the entire process.
Another facility that Swastika offers are the facility of Basic Service Demat Account (BSDA).
If your annual turnover is less than Rs. 50,000, we do not charge any AMC on the Demat account provided you’ve not already availed this facility with some other broker.
For turnover more than Rs. 50,000, we charge a flat annual fee of Rs. 250 only.
Alternatively, you can pay Rs. 1000 one time for making the Demat AMC zero for life. Furthermore, the best stock broker also offers a refundable plan of Rs. 2000 one time for making the Demat AMC zero.
This amount of Rs. 2000 will be refunded if you close your account after 1 year.
The Bottom Line
Demat account gives you numerous facilities in terms of trading and holding other securities in a single account.
Besides, it also gives you the benefit to trade online. All you need is an online Demat account and a depository participant that provides you 24*7 support
At Swastika, you will have excellent services with full support. Confronting any questions for account opening? Swastika assists you with its quality services.
For online instant Demat account opening in a hassle-free way, contact us at https://www.swastika.co.in/contact-us
Frequently Asked Questions
Yes, it is necessary to open demat account for trading in India. A demat account will help you to keep your stocks in electronic form.
Earlier, when you used to buy physical shares, you needed a large storage space to keep the share certificates safe and secure.
A demat account also helps you to save time as opening an account is a simple process.
With Swastika Investmart you can invest in stocks without any hassles after opening a demat account online or offline.
Yes, opening Demat account is absolutely free with swastika. you can open Demat accounts with swastika from anywhere and by sitting at home via online mode.
You can open multiple Demat accounts with swastika , so long as the accounts are opened with different Depository Participants. You cannot open more than one Demat account with the same DP.