A Demat account is an electronic vault for your shares, mutual funds, insurance, bonds, ETF, and more. In simple words, a Demat or Dematerialized account is what a bank is for your money, but for your investments. Now, currently there are two central Indian authorities offering Demat accounts. They are the Central Depository Services Limited (CDSL) and the Securities Depository Limited (NSDL).
You would need a broker to open your Demat account. Upstox could help you there! In just a few clicks, you will have your own Demat account. However, before we get there, let us understand why we need a Demat account in the first place.
What Benefits does a Demat Account Provide
All-in-One
Imagine having to keep your mutual funds, shares and insurance all in different accounts or places! Luckily, for you, your Demat account lets you keep everything in one place.
Easy Access
Thanks to the Demat account, you can access your stocks and electronic assets within minutes right from your phone! Imagine having to keep hard copies of all these important papers and the anxiety of losing them or not being able to place them immediately at urgent moments. What's best is that you can just have them on your phone and stay in touch with your financial status 24x7.
No TDS
A huge issue with holding hard copies of your shares is that you would be entitled to pay TDS on them, which is not the case if you hold the soft copy or the digital version that comes with a dematerialized account.
Bringing in Foreign Investors
The process of investing in the Indian Stock Market was exhausting for non-Indians; however, with the introduction of the Demat account, it has been made easier, faster, and safer.
You Can't Lose it
We all have, at some point in our lives, lost an important document. Imagine losing your life’s hard-earned investments because you can't produce a copy of your shares. Luckily, with a Demat account, all of your financial assets are digitized and kept in one place, secure for you and the authorities to keep a check on.
Faster
Back in the day when someone had to buy or sell equities, they would have to go to the broker’s office physically or call them. Afterwards, they would have to wait for a minimum of three weeks to receive the money or the equities. With a Demat account, the wait is down to a few seconds.
Helps check trading malpractices
Since a Demat account requires an investor to complete the KYC, it also makes for an easy mapping from a governance point of view.
Nominations
If you have to fill in nomination details, you only have to make a few taps and submit; however, earlier, there had to be forms, which had to be filled and posted, and you would have to wait for months to successfully have a nominee for your shares. Phew! Aren’t we glad that process is a lot faster with Demat accounts!
With so many benefits to having a Demat account, we now show you how to open a Demat account for yourself.
All you have to do is find the right online brokerage app that provides you with a number of options to grow your finances—Look no further than Upstox. You can invest in shares, mutual funds, gold, NPS, FDs, and more simply from Upstox.
-Visit Upstox and click on ‘Create account’
-Upload your identity and address proof, Aadhaar card or passport will do.
-Upload your PAN details with bank account details.
-Upload your photograph
Within 24 hours, you'll be all set to start trading with your new Demat account.