The cost of living in the developing countries like India have surged up during recent times but, the income levels of the common man in the country are not on par. This is the juncture where people are planning for the second income to their pockets in addition to their monthly salaries/business income. Investing & Trading stocks are one of the effective ways to add an extra income to your pocket with a decent effort. Unlike past, there is no need for you to reach the stockbroking company to trade the stocks. You can easily open a Demat account online and have stock your shares in the dematerialized form in addition to trading the stocks. The article is to guide you about how to open De-mat account online.
What is the Demat account?
Demat account is an account where shares are stored in electronic form. The account helps you in electronic settlements of the trades conducted online. The functionality of the Demat account is just similar to a bank account. Like you save money in the bank account, your store stocks in the Demat account. Each time you conduct the trade, the stocks/ shares are debited or credited accordingly. Most of the online Demat accounts allows you to hold some money in the account to conduct the transaction. you can also link the account to desired bank account so that you can easily transfer the money either ways when needed.
Types of Demat account
2- in 1 Demat account
This 2 in one Demat is available many stockbroking companies. The Demat account here is paired with the trading account so that the user the account will not only be able to store the stocks in the electronic format but also trade the stocks through the account. These types of demat accounts are offered by the discount brokers that trade large volumes at low cost. When you buy shares through this 2 in one trading account, the shares will be credited to your Demat account in two days, similarly, when the sale of shares takes place, the shares will be credited from the account within a day.
3- in one trading account
These 3 in one trading accounts are mostly offered by the banking firms or the brokerage firms that have banking operations within the group. While both the types of Demat accounts have an integrated relationship between the trading account and Demat account, 3 in one account brings an additional advantage of seamless funds to transfer into the trading account whenever needed.
How to open a Demat account online?
Irrespective of the type of the Demat account you choose to open, the process of opening the account remains same.
• Your process of opening the Demat account should start with the research for the top .
• After you have finalized the depositary participant on reading the services offered by them, you should submit your KYC documents online(Aadhar card, PAN and phone number). These depositary participants will bridge the gap between you and depositary.
• As a process, you may have to sign an agreement that includes all the information about the charges rules& regulations along with the rights of investor while you hold the Demat account.
• Verification of the KYC documents is followed by personal verification to ensure that the information produced through KYC is correct.
• After your brokerage firms facilities account opening, you will be given unique account number that can be used for your future transactions through Demat account.