People who are interested in trading should know about demat account. They open a demat account through any broker or sub broker. These online brokers provide hassle free account opening and trading process. And they charged for the transaction and account maintenance charges from the investors. The account opening is totally paperless, that makes it so easier to use. The broker are registered under the Securities and Exchange Board of India (SEBI). SEBI regulated all the brokers and their activities.
In this article I will discuss How to open a Demat account without a broker? Because most people know demat account can be opened by the brokers only. The brokers are regulated by The Depository Participant (DPs). In India there are two DPs, such as National Securities Depository Limited(NSDL) and Central Depository Services (CDSL). They mange the demat accounts and the holdings of share in your account. But there also a way to open a demat account without a broker.
Before starting that let’s know a little bit about what is a demat account?
What is a Demat Account?
A Demat account is a digital account where you can hold securities, bonds, and stocks and also trade on the share market. It is a digital way to trade on the share market. It is maintained by the brokers under the DPs, National Securities Depository Limited and Central Depository Services. You can buy, hold or sell shares through the account. You can access the account from anywhere and you can open multiple demat account. Basically demat is the way to access the share market digitally, which gives the investors more easy accessibility to trade.
How to open a Demat account without a broker?
If you ask this question How to open a Demat account without a broker, the answer is yes, you can. This can be done with the help of The Depository Participant (DPs), such as bank or a broker. You can approach any DP to open a demat account and you can access it.
Cons of Not Having a Demat Account with a broker
- But there is a problem only having a demat account, it acts only as a repository of stocks. You can not make a transaction like buy or sell stocks or trade on intraday. To do so you need to have a trading account.
- So when a open a demat account through any DP such as banks you can get the all 3 in 1 benefits, like demat account, trading account and a saving account. If you open with a broker or a sub broker also get the these benefits also except a savings account.
- The brokers offers many benefits like brokerage discount, F&O trading, IPO buy, mutual funds etc. When you open a demat account by the brokers your trading account will automatically opened according with it.
- Only one benefit you can get by not Not Having a Demat Account with a broker that is you do not need pay a high annual maintenance charges. The charges are minimum when you just have a demat account with a trading account.
How You Can Trade With out a Trading Account
Also you can trade with out a trading account having a demat account via secondary party. But that is a harassing way to buy or sell stocks. There need to search for buyers or sellers for your stocks. But while trading through a demat account that is bread and butter process.
Benefits of a Demat Account With a Broker
There are lots of benefits you can get having a demat account with any broker or sub broker. When you open a demat account with a broker you have to open a trading account with it. So there are so many pros you can get.
- You can get all the benefits of trading.
- You can easily open a demat account with no paper work.
- The money adding and withdrawal process is a finger tip process.
- The account is a digital way for trading and you control it from any where at any time.
- You will get discount on the brokerage charges.
- Along with trading you can hold stocks, bonds, securities and shares in the account. Also they offer to buy IPO and mutual funds.
In India there are so many discount broker. You can find the best discount broker with a high leverage as per your requirements.
How to Open a Demat Account
Tom open a demat account you need first search a broker. When you decide your broker then fill up all the required information along with your income proof and address proof. Then complete you e- kyc process and add your saving bank account where you will receive the profits, if you get any. Then the broker will send the user id and password via email.
- ID Proof
- Address Proof
- Income Proof ( Bank Account Statement, salary Slip)
- Pan Card Number
- Active Mobile Number and mail id
Where Can I Use Deamt Account
With out a trading account the demat account is worthless. You have to open a trading account along with the demat account. Only then you can transact on share market. But you can apply for IPO stocks. Because the IPOs are not registered on National Stock Exchange. So you can apply for it when any IPO issued. But to buy or sell the IPO you need to transact via trading account.
So to give the answer of ” How to open a Demat account without a broker?” I will say there is not extra benefits only having a demat account. You can not do trading through this or not any transaction. So to having only a demat account you can’t access to the share market. While you decide to trade on share market open a demat account with any broker or sub broker or by your banks. There you can get many benefits for trading.
Thank You for reading this article hope you like it.
Wish you a happy and safe trading time which can give you profit.
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1. How can I open a demat account by myself?
You can open a demat account with a broker or your bank. To open it fill up all the required information and personal details and do the e- kyc. Thus you can easily open e demat account for your self.
2. Is it possible to open demat account online?
Yes, it is more easier to trade online through the demat account. Also you can open a demat account through any online broker. This process is paperless and hassle-free.
3. Can we open demat account in bank?
You can open a demat account in bank. Visit you bank’s branch and submit your account opening form. Also you can open account through some bank’s online portal.
4. Can I buy stocks without a broker?
You can buy stocks with out any broker by the Direct Stock Purchase Plan (DSPP) system.
5. Is PAN card mandatory for demat account?
Yes, PAN card mandatory is for demat account. As per SEBI regulations the PAN number is mandatory for a demat account.
6. Can I have 2 demat account?
You can have 2 demat account. But you can not open 22 demat account under the same broker or same DP.