- The stock market is the indicator of the growing economy.
- Stock market is a difficult field to invest.
- After learning you can invest in this sector. It needs a lots of knowledge to invest.
- First of all to invest in the stock market you need a demat account. Without the demat account you can’t buy or sell the stocks.
- You can also invest in commodities, ETFs, mutual funds by opening a demat account.
- You will get many benefits by owning a demat account.
- If you want to open demat account you need to fill up some criteria.
- In this article I will discuss the Eligibility Criteria to Open Demat Account and how you can open it.
What is a Demat Account?
- A dematerialized or demat account is a electronic account where you can hold all your securities, ETFs, mutual funds and so on.
- With out a demat account you can’t take part in the stock market.
- You can also trade through the demat account.
- The demat accounts are operated and regulated by two DPs, these are National Securities Depository Limited (NSDL) and Central Securities Depository Limited (CDSL).
- You can open demat account through any broker or sub broker.
- A demat account is a digital account that can help you to participate in the stock market.
- The demat account facility makes the investment in stocks so easy to the investors.
Benefits of Demat Account
- You will get many benefits having a demat account. You can avail several services in one account.
- The services are provided by the brokers.
- The brokers will charge a brokerage.
You may read this: Best discount broker in India
- The brokers provides their services and give discounts on brokerages. So called as discount broker.
- There are lots of brokers in India. Such as Zerodha, Angel One, Upstox etc.
Now let’s know the benefits of having a demat account.
1. Easy Investing Option
The investment process is so easy through a Demat account. The brokers provide an easy and transparent electronic way to invest in the stock market and make your portfolio and transactions statement.
2. Many Investing Options
You can invest in many options through only one account. You can do trading, and invest in mutual funds, SIPs, commodities, etc. This is a best part of having a demat account.
3. Unique User ID
Every Demat account has a unique user Id. It identifies one unique user and holds the portfolio and sends the transaction statements to the investor.
4. User Friendly
A demat account is an electronic version to invest in the stock market. Deamt accounts which are controlled by the brokers provides a user friendly use experience. The trading and stocks buy and selling process are so easy.
Eligibility Criteria to Open Demat Account
- To open demat account, you need to follow some criteria.
- There are some parameters to have a demat account.
- Fill up all the criteria and pass the parameter, then yon can easily open demat account.
Parameters for Demat Account
- A person should be an Indian citizen to open demat account.
- But a person who lives in foreign can also open demat account. That account will be a NRI account and the opening process will be different from the regular process.
- A person who is 18 years or above can have a demat account.
- But a below 18 years person can also open demat account. This account will be a minor account and he should have add a parent who can supervise it.
To open demat account you have to submit some personal information and uploads documents.
Here the mentioned documents and information you have to upload.
Documents Required to Open Demat Account
1. Identity Proof
- To prove your identity you need to have PAN card. PAN card is mandatory to open the account.
- While uploading your PAN card ensure that the signature and the photo is clearly visible on the card.
2. Address Proof
- Upload your aadhaar card, voter id or driving license or pass port to proof your permanent address.
- You can upload among any of these.
3. Bank Account
- Submit your bank details and upload a cancelled a check.
- You need to give your income proof.
- As a proof you can submit your 6 months salary slip or 6 months bank statement.
5. Signature and Photo
- After all required documents are submitted, upload your photo and signature on a white paper.
- The signature should match with the PAN card’s signature.
- Then upload a live picture of yours.
- The final step is the e-kyc procedure.
- You have to update the aadhaar based KYC through online. Your mobile number should be linked with your aadhaar number.
That’s all the procedures. After this you will get a confirmation mail on your registered email along with the unique user ID and password.
- The demat account opening processing are now so handy because of the brokers.
- They are proving a easy methods to open demat account and handle it.
- You can easily open demat account through any online sub broker or broker.
Thank you for reading this article. Hope this helps you to know about trading.
Wish you safe and profitable trading.
If you need or have query then contact us at: [email protected]
1. Can a below 18 year old get a demat account?
Yes they can. But that account will be a minor account and their parents should be considered to operate it.
2. Can I open demat account if I am student?
Yes, you can open if you have all the required documents along with a must PAN card.
3. Can a housewife open a demat account?
Yes, she can trade on stock market.
4. Is demat account income taxable?
If you are investing in stocks and you gained a lots of by selling them then it is liable to be taxed.
5. Which is India’s No 1 demat account?
Presently Zerodha is the best discount broker. They provide discount on brokerage with high leverage. Zerodha has the largest active client base of 62.77 lakh.