What is Demat Account, Basics and How it works? Most of us are aware of the term called Demat account. One who is not aware, a Demat account is an account that helps in converting physical shares into electronic form. This term is widely used in the world of online trading and investment. We all wish to have some investments from where we can yield good returns. Seeing this, many people are falling for online trading of securities. Manually keeping a record of all the securities can be a tedious task. So here with the help of the Demat account, you can find everything in the Demat account information.
Gone are the days when people used to do a traditional form of savings. But nowadays people are more open to online trading of investment. For this, it is very much important to open a Demat account for the effective functioning of the operations. Also, it is very much important to have the right knowledge and make sure to choose the right platform to do it. Know that a Demat account is just like a bank account where your money is stored in electronic form. With a Demat account, there will be easy buying and selling of shares.
Following are the points reflecting how to open and how a Demat account works:
● Visit the online space- To start the process, you have to visit the online platform dealing in securities. Download the application or visit the website space. After visiting, click on the ‘open a Demat account’.
● OTP and link- After filling in the details, you will get OTP on your registered number or email ID. Enter the OTP and after the verification, you need to fill out the online account opening form.
● Filling in the application form- Know that you can open a Demat account free online. Just make sure to mention all the details right and link the documents asked by them.
● E-KYC process- It is very much important to get your KYC verified online. After submitting all the essential documents, verification of KYC details is done online.
● Get your Demat account number- Once you are done with submitting documents and with KYC verification, you will receive your Demat account number. Once you get your Demat account number, you can start investing in securities.
Know that a Demat account works like a normal bank account. To make potential use of a Demat account, it should be linked with your trading account. The depository participant will forward your buy order to the stock exchange. The exchange will match your buy request with a sell request with another trader. Once it is matched, the shares will be credited to your Demat account at the end of the trading day. So this way is how Demat account works. So if you are looking for the best online trading platform, you should visit ‘Sharekhan’. You can also sign-up with them online for a trading account.