The world is all about getting digital now. Technology has made almost everything more accessible and smoother. Holding financial securities in digital form is also more convenient than having them in physical form. It has been possible through a Dematerialization account (demat account) that allows holding all your financial securities in a single account in electronic form. Here are the demat account opening procedure and Demat account benefits. 

Demat Account Opening Process 

Demat account opening procedure starts with finding a suitable Depository Participant (DP). A stockbroker will offer the services of share trading as well. 

• Stockbrokers are basically of two types – full-time and discount brokers. 
• The choice of broker will depend on your knowledge about the stock market and preferences for stock advisory. 
• If you require stock investment advisory, full-time broker’s services will be better for you. And if you can spend time researching stocks and companies or you already have a financial advisor, you can simply choose a discount broker.
• Brokerage charges should also be considered while choosing a stockbroker. Full-time brokers charge high fees than discount brokers.

A trading account is linked to a demat account. To make buying/selling transactions in the stock market, you need to use a trading account whereas demat accounts hold all your bought securities. Thus, both accounts are required for investing and trading online. You can open both accounts together online. 

Following are the steps involved in the demat account opening procedure: 

Step 1: Go to demat and trading account opening online form on your selected DP’s website. 

Step 2: Enter your basic details for KYC. Name, contact number, email ID and PAN details – it is the essential document for brokerage accounts. 

Step 3: Enter your Bank account details to get it linked with your demat and trading accounts.

Step 4: Upload Documents in digital form – PAN card, address proof, income proof, signature on white paper, cancelled cheque, passport size photo. These are the commonly required documents while opening Demat & Trading Account.

Step 5: The In-Person Verification (IPV) process may vary from DP to DP. Some require recorded videos and others may require live video calls. 

Once you have gone through the IPV process, you will receive your login credentials. This is an easy online process with zero paperwork formalities. Let us explain the benefits of a demat account.

Demat Account Benefits

• Easy Dematerialisation of Securities 

The primary role of Demat accounts is holding the financial assets in the dematerialized form i.e. conversion of physical shares into electronic format, in order to make investing and trading easier than ever. 

• Easy Holding of Multiple Securities in One Place 

Investors can hold a variety of financial assets in their demat accounts like stocks, , Mutual Funds, Bonds, Debentures etc. 

• Easy Accessibility of Securities 

Demat account is an online storage platform. You can overview securities you own from anywhere using a smartphone or laptop.

• Easy liquidation

Through a demat account, investors can access their money quickly after the sale of their shares.

• Auto-credit of Corporate Benefits

Investors entitled to receive dividends, bonus, interest or any refunds etc can get it automatically in their Demat Account. 

• Reduces Risk

Demat account keeps you away from dangers of forgery, delayed deliveries, theft etc. that was not possible with physical shares.

• No Issue of Odd Lots

It is also one of the considerable benefits of a demat account. Investors can buy/sell even single security, unlike paper form trading.

Here you have found out how convenient a demat account is for investment in securities. It has eliminated the lengthy, time-consuming process and mitigating risk factors. The accounts opening is also an easy and fast process.