What is Demat Account? This question must have come in your mind at one time or another. Whenever you read something about the share market to invest, then there must be some word related to Demat account in front of you. So today in this article we will know what is Demat Account and how to open Demat Account, you are going to get many more important information related to it in this article. However, there are already many articles on the Internet. But today we will explain to you what is a demat account in very simple language. Here all the information related to demat account will be in English.
In which we will also know about the benefits of this. Demat account is used in the stock market. You must have your PAN card to open this account. You cannot open Demat Account without PAN Card. Let us tell you that if we talk about the stock market a few years ago, then after buying us shares, the company whose shares we used to buy sends us some documents. Those who used to be sure that we have bought the shares of that company. But ever since the Demate Account has come, since then everything has become digital. So let us first know what is Demat Account
What is Demat Account?
Demat account is used to buy and sell shares. In this account, we can keep our shares in the same way as we keep our money in our bank account. The way we send money from one account to another with the help of Net Banking, Credit Card, Debit Card, Demat Account also works in the same way, in this we transfer shares from one Demat account to another Demat account online. can do. Demat account is called “Dematerialized account”, which holds shares electronically. Demat accounts in India are maintained by two depository organizations namely National Securities Depository Limited and Central Depository Services Limited.
In the early times, whenever someone had to invest in the stock market, after buying the stock, that company would send the share documents. So that the company you have bought the shares with is proof. When you sold the shares you bought, your share documents would go to the company’s office, where the company would check, what was the price of the shares you bought at the time you bought the shares. It was a very long process. But since Demat Account came, all these tasks have become very easy.
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Now as soon as you buy shares from the stock market, they immediately come into your account, and when you sell your purchased shares, then the money also comes in your account after some time. You need a password to use a Demat account, and whenever you do a transaction with your account, you need a transaction password for this. I hope you have understood that what is Demat Account.
How to open account in Zerodha?
How to open account in Zerodha? You can open an online account in Zerodha. It is very easy to open an account online here. Neither you have to go to any branch here, nor do any paperwork is required. The biggest advantage is that when you open your Zerodha account online, it becomes active in just 15 minutes, and you can do trading here. Whereas if you open your account offline, then it takes 7 days to become active. So let’s know, how you can open your Demat Account in Zerodha online
What are the things required to open Zerodha Demat Account?
How to open account in Zerodha? Before knowing this, it is also very important for us to know which documents are required to open an account.
1. Mobile Number
To open an account in Zerodha, it is very important for you to have a mobile number. Because when you create your account, there is one on your number. OTP After this, the registered mobile number of your account becomes this number.
2. Email Address
Email address plays a very important role in account opening. If you do not have an email address yet, you can create a new Gmail account. If you don’t know that new How to Create Email Address Then you can read this article. In which you have been explained step by step.
3. Aadhar Card
To open a Demat account here, it is also very important for you to have an Aadhar card. Without this you cannot open your Demat account. When you upload your Aadhar card on Zerodha, for this you will have to create an account in DigiLocker, without this your Aadhar card will not be uploaded. It is mandatory to link your Aadhar card with mobile number. If your Aadhar card is not linked with mobile number, then you can link your Aadhar card with your mobile number by visiting any nearby Aadhar service center.
4. Pan Card
Whenever you open your Demat Account, PAN Card is mandatory in it. You cannot open any demat account of yours without PAN card.
5. Bank Proof
While opening a Demat Account, you are asked for your Bank Proof, in this you can upload the photo of Cancel Check to proof your bank account. If you do not have a check book, then you can also upload the first page of your bank’s passbook, in which all the information about your account is given.
Let us tell you that your name should not be anywhere on the check that you will upload. All you have to do is take a blank check, and upload it by writing Cancel on it. Apart from this, when you will upload your passbook, it should have all the things like bank logo, account number, IFSC, MICR Code etc. Otherwise your account will be cancelled.
You will have to make a scan copy of your signature and upload it while creating an account. For this you can use any white blank paper But after scanning your signature, you can upload it.
7. Income Proof Documents
Whenever you open your account to trade, you are definitely asked about your income. Because it is necessary to trade in Futures and Options (F&O). You can upload any one of the following documents for your income proof – 6 Months Bank Statement, Net Worth Certificate From CA, Income Tax Return Acknowledgment, Latest Salary Slip.
How much does it take to open a Demat Account in Zerodha?
- It takes 200 rupees to open a Demat Account in Zerodha.
- If you want to open an account for Commodities Trading in Zerodha, then for this you have to pay a separate fee of Rs.100.
- But if you want to trade in both, then you should open your account with Rs.300 in the beginning.
How to Open Demat Account in Zerodha?
So far, we have taken information about all the necessary documents to open an account in Zerodha. So let us now know, how we can open an online account in Zerodha –
Step 1 – First of all you have to open your browser on your computer or phone. After this you have to open Zerodha’s website in your browser.
Step 2 – After opening Zerodha’s website, you have to enter your mobile number to signup. Whatever number you enter in Zerodha must be linked with your Aadhar card. As soon as you sign up by entering your mobile number, you will get an OTP.
Step 3 – The OTP which will be sent to your mobile number by Zerodha, this OTP is valid for 30 minutes. You can login to your account with this within 30 minutes.
Step 4 – After this you have to enter your email ID, after that an OTP will be sent to your email ID as well, you have to use that OTP to verify your email ID.
Step 5 – After this, you have to enter the Date of Birth with your Aadhar card, and enter the number of your Pan Card.
Step 6 – After entering all this information, you now have to pay in Zerodha. You can use credit card, debit card, net banking, and UPI to make payment.
Step 7 – When you make payment in Zerodha, after that you have to upload a softcopy of your Aadhar Card. For this you need to have an account on Digilocker. You can create your account directly by going to Digilocker with the help of Zerodha.
Step 8 – When you have uploaded your Aadhar card, after that you have to enter all your personal information, and click on Continue.
Step 9 – After this you have to fill your bank details, in which you have to fill your account number and bank name and many bank related information. After filling all your bank information, you have to click on Check Box.
Step 10 – After this you have to do your In Person Verification (IPV). For this you have to use the front camera of your laptop or phone. For this you have to take a photo with your camera.
Step 11 – Here you have to upload a copy of some of your necessary documents, which can be Pan Card, Bank Proof and Digital Signature etc. After uploading all the documents, you have to click on Continue.
Step 12 – After uploading all the documents you will be asked for your E-Signature, to do E-signature you have to click on E-sign Equity. After this, some Terms and Conditions will appear here, you have to click on Proceed To Esign after reading them.
Step 13 – After this, you have to verify your Aadhar card, for this you have to go to the Aadhar card website NSDL, here you have to enter your Aadhar card number, and after that you will get an OTP on your registered mobile number with your Aadhaar. Here you have to verify your Aadhar card.
Step 14 – After you verify your Aadhar card, then your complete Zerodha form will come. Once you have checked it thoroughly, after that you click on the button of Sign Now.
Step 15 – Now you have to e-sign your Zerodha form, for this you have to click on a check box, after that you will be asked for your aadhar card number again, you have to verify your account by entering your aadhar card number.
Step 16 – Now your Zerodha Demat Account has been opened, now this form will be checked by the team of Zerodha and after checking your account will be opened. Approval of your account will be sent to you on your email ID. Now you can do online trading with your Zerodha Account.
Benefits of Demat Account
Most of the benefits of Demat Account are for Share Marketing. So let’s know, what are the benefits of demat account –
In earlier times it was very difficult to buy and sell shares. If you used to buy shares, then only you could sell them with any one group. But since the facility of Demat Account has come, since then you have many options, you can sell your shares wherever you want. Similarly, if you buy one of your shares, you can also sell it.
The biggest advantage of Demat Account is that your shares are absolutely safe here. Because here your shares are kept digitally safe.
Earlier it used to take a lot of time to transfer shares, but now it is not so, you can transfer your shares to another account through your demat account in a few minutes. You can see it instantly in the account to which you have sent the shares.
You can sell or buy your shares as per your choice through your demat account. But this was not the case in olden times. You must have come to know that demat account is important for us, if we invest in share market.
Frequently Asked Questions About Demat Account
How to use Demat account?
Demat account is very easy to use. For this, you have to first open a demat account of yours, for this you can register with the broker or sub-broker. After this, you have to activate the account here by submitting some of your documents etc., after the account is activated, you get a password, with the help of which you can access your account.
How many demat accounts can a person hold?
Just as a person can maintain multiple bank accounts, in the same way, he can also maintain multiple demat accounts. But the thing to keep in mind here is that you cannot open more than one demat account in the same depository or bank, for more demat account you have to open accounts in different depositories.
How to earn money from demat account?
You can earn money by buying shares with a demat account, but for this, it is very important for you to have good knowledge related to the share market first. Only after that you invest in the share market.
What is the difference between Demat account and Trading account?
All shares and securities under a demat account are stored electronically, and securities in a trading account are used by the account holder for the purposes of the transaction.
Note – In this article you have been told, what is Demat Account. In which you have been given many more important information about demat account. If you have any question related to this article, then you can ask us by commenting. If you liked this article, then please do share this article with your friends, thank you.