Demat Account in Hindi: If you also want to become an investor and Share Market investment in and trading If you want to earn money by doing this, then for that you need Demat Account. Because without Demat Account you cannot hold share transactions and shares.
Do you know Demat Account what is, demat account How unwrap, demat account Who? opens up Is, demat account And trading account In what gap Is, demat account Of Advantages And Harm what Huh Then you have come to the right article.
Through today’s article, we are going to give you complete information about demat account, which you should know before opening a demat account. If you are also thinking about investing in the stock market, then definitely read this article till the end.
So let’s start today’s article to know more What is Demat Account In detail –
What is Demat Account (What is Demat Account in Hindi)
Demat account is an account through which investors share Can buy and sell. The way people use bank accounts for money transactions, Demat accounts are used for the same type of share transactions.
in the manner Bank In order to transact money, you need a bank account, in the same way you need a Demat account to transact shares. You cannot buy and sell shares without a Demat Account.
Our shares in Demat Account remain in Digital Form so that they remain safe. The full form of Demat is Dematerialized. Which means which cannot be touched. When you sell the share through Demat Account, then after 1 or 2 days the money of the share comes to your bank account.
in demat account Can hold various financial securities such as shares, stocks, initial public offers, digital gold, bondNon-Convertible Debentures, Government Securities, Exchange Traded Funds, mutual fund And can do intraday etc.
Simply put, Demat Account is an account through which we can hold shares or financial securities and do their Buy-Sell.
Demat account opening
After the Depository Act in India in 1996 Demat account was started. Before the demat account, when people used to buy shares, they were given a certificate by the company which was called share certificate.
This share certificate used to be the later proof that they are the owner of the share. There was a certificate for each share. Like if you have 100 shares then there will be 100 certificates also.
But there was also a problem in them that due to manual work, there were more chances of making mistakes in them and there was a fear of losing and being stolen. Apart from this, it used to take a day to transfer shares.
To solve this problem, Demat Account was needed. In Demat Account, your shares are held in Virtual Form, so that you do not have any fear of losing shares or being stolen. When you buy or sell a share, it takes 2 days for it to reach your Demat Account.
By now you guys must have realized that What is Demat Account Now let us know further how you can open a Demat Account.
In the last article we List of Best Mobile Trading Apps in India shared which will end your search for a perfect investment application.
demat account list of open apps
| demat account opening app | download link |
| Upstox App (Upstox Trading App) | Upstox App Download |
| Groww App (Grow Investment App) | Groww App Download |
| Angel One By Angel Broking | Angel Broking App Download |
| Zerodha Trading App (Zerodha Kit Trading App) | Zerodha Download |
| IIFL Markets App (IIFL Markets) | IIFL Markets App Download |
| 5Paisa App (5Paisa Share Market App) | 5Paisa App Download |
How to open Demat Account (How to open Demat Account in Hindi)
When we open a demat account, the demat account is not opened alone, along with it we also have to open a trading account. We open both trading account and demat account from the broker but the demat account is with the depository.
Depository is a government body where our shares are kept and the record of ownership of shares is kept. There are mainly two depositories in India CDSL And NSDL, These Depositories have our shares in digital form.
You have many options to open a Demat Account – the main ones are Full Service BrokerDiscount Service Broker and Bank,
If you open a Demat account with Full Service Broker, then they also give you tips related to the share market along with the platform. Due to their service, these brokers also charge more.
There are Full Service Brokers in India like IIFL, Motilal Oswal, Sharekhan etc.
Discount Service Broker They provide you Platform but they do not give you any kind of tips. Due to less service, they charge less. in India Upstox App, Zerodha App Adi is Discount Service Broker.
You can also open a Demat Account from the bank. Banks like SBI, ICICI provide facility to open Demat Account in India.
If you need tips on investing in the stock market along with opening a Demat Account, then you can open a Demat Account from a Full Service Broker. And if you want to open Demat Account in less money then you can open your Demat Account from Discount Service Broker.
Follow the following steps to open Demat Account
- To open demat account first download upstox app
- create account on upstox
- Enter your email and mobile number
- Email ID verify the
- Enter your PAN card number
- Enter your personal information
- confirm your address
- Make your digital signature in Upstox
- upload your selfie now
- Enter your bank details
- Pay Demat Account Opening Fee on Upstox
- Congratulations, in this way your Demat account will be opened.
If you are having trouble opening a Demat account, then definitely read this article – How to open Demat account in Upstox App,
Difference between Demat Account and Trading Account
Many investors do not know that Demat Account and Trading Account What is the difference between But if you want to become an investor, then it is important to know the difference between them.
- In Demat Account we can only hold our shares and through Trading Account we can buy and sell shares.
- Trading Account is managed by Broker while Demat Account is managed by Depository.
- You can open any number of trading accounts in one Demat Account.
- Intraday Trading You can also do it only with Trading Account because you do not have to hold shares in it, so Intraday Trading can be done even without Demat Account.
- Whenever you open a Demat Account or Trading Account, there is no such separation as to which is your Demat Account and which is your Trading Account. Its login ID and password are the same, but as we mentioned above, you can only hold shares inside Demat Account and you can buy and sell shares from Trading Account.
Who can open demat account
Any person above 18 years of age who has PAN Card Yes, he can open Demat Account. If you are a student and you fulfill the eligibility criteria to open a Demat account, then you can also open your Demat account and do trading.
How much money does it take to open a demat account
You can open Demat Account very easily for 300 to 600 rupees. And you can start investing in stocks. groww On such platforms, you can also open a demat account for free. Although you can open Demat Account with very little money, but DP takes many types of fees from you to run Demat Account.
Such as Account Opening Fees, Annual Management Fess for managing the account, Transaction Fees for exchanging shares between two Demat Accounts etc.
Who opens demat account
The work of opening Demat account in India is done by two institutions NSDL (National Securities Depository Limited) and CDSL (Central Securities depository limited).
There are many agents of these Depositories who are called depository participants. In common parlance, they are called DP. The work of DP is to open a demat account.
Many banks in India provide facility to open demat account like SBI, ICICI, PNB, SBI etc. You can easily open demat account by visiting these banks.
Apart from banks, many organizations also provide the facility of opening demat accounts to the customers like – IIFL, Motilal Oswal, Sharekhan etc. You can also open a demat account by visiting the offices of these institutions.
Apart from these, you can open Demat account in Discount through mobile applications like Upstox, Zerodha, Groww etc., all these are discount brokers. By downloading these trading applications, you can easily open your Demat Account.
But keep in mind that to open a Demat Account, you must be above 18 years of age and you must also have a PAN Card.
how to earn money from demat account
Along with opening a demat account, you should also open your trading account. After that buy good shares and keep them in your Demat account. When the price of shares bought by you increases, then you can earn good money by selling them.
You must know how much money is there in the share market, once you understand it well, you too can easily earn crores of rupees from the share market.
Advantages of Demat Account (Advantage of Demat Account in Hindi)
The advantages of Demat account are as follows –
#1 – Security
In Demat Account, your shares are in Digital Form so that the possibility of theft and loss of your shares ends. There is a fear of loss and theft if the shares are in physical form. That’s why it can be said that your shares are safe in Demat Account.
#2 – Time Saving
You must have also heard ‘time is money’. Earlier when it used to take about 14 days for the paper work for share transaction. But with demat account all the action is done within just 2 days.
#3 – Reduction of Mistakes
A lot of mistakes happen due to manual work in the physical and offline world. One of the biggest advantages of a demat account is that these wrong trades have come down significantly.
Through Demat account, you can transfer shares very easily and simply. You can also transfer only 1 share through demat account.
Disadvantage of Demat Account
On one hand, there are many advantages of Demat account, on the other hand, there are some disadvantages as well, such as –
- Many brokers are not trustworthy they can misuse your account.
- One of the main disadvantages of a Demat account is the expenses associated with opening and operating a Demat account. Opening of a Demat account involves account opening charges, transaction charges, custodian charges and annual maintenance charges.
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Some common questions related to demat account
You must have a PAN card to open a demat account.
By law you can have 2 demat accounts, however, they should not be with the same DP or broker.
You can only hold shares in a demat account, but if you want to trade then you will need a trading account for this.
You Learned: What is Demat Account in Hindi
After reading this article you must have understood that What is Demat Account? And why is it necessary. If you also want to invest in the stock market, then definitely open your Demat Account and start investing.
Hope you have liked this article written by us and all your confusion related to Demat Account would have been removed. Do share this article with your friends on social media as well.