How to open a Demat account
Wondering about setting up a Demat account online? You are not the only one; in recent years, these accounts have become popular amongst investors looking to invest in stocks/shares and other market securities. Of course, if you are thinking of opening a Demat account online, then there are a few things that you must keep in mind.
What is a Demat account?
Setting up a Demat account opening online means that you will be holding your securities and shares in the account. Dematerialised or Demat accounts help you do away with the need for physically holding and trading share certificates. This system came into being back in the year 1996 in case of National Stock Exchange (NSE) stock transactions. SEBI (Securities and Exchange Board of India) has now mandated from 31st March last year that all debentures and shares of listed companies in the stock market, should be compulsorily Dematerialised for executing stock exchange transactions.
These accounts can be used for building your portfolio of stocks, mutual funds, ETFs, bonds and other assets. You can choose to set up a regular Demat account which any resident Indian can open. NRIs can set up repatriable accounts where money can be transferred from other countries and the account should be linked to NRE bank accounts in turn. NRIs can also choose non-repatriable accounts although these accounts are not used for fund transfers from overseas. Customers with Demat accounts have to set up trading accounts for trading in securities and shares. Next question which arises is how to set up a Demat account online? No worries, we got your back!
How to open a Demat account online with Groww?
You can always consider opening a Groww Demat account for the sheer convenience, extensive guidance and plethora of features that you get. Dematerialised accounts can simply be opened by undergoing registration with Groww and filling up the requisite application form. Post submission of the same, a few vital documents also have to be submitted, including proof of identity, address and income. After submission is done, the verification procedure will be concluded. Thereafter, investors will get their client IDs and account number for linking to trading accounts for buying/selling shares.
Investors will get depository letters with Demat account details as well. The CDSL account number will come with a numerical figure containing 16 digits. NSDL will be issuing a code of 16 digits preceded by IN. Groww offers two in one trading and Demat accounts for investors with a seamless online process minus paperwork. If you have all documents at your fingertips, you can get this done in only a few minutes.
The sole documents needed for delivery and regular intraday trading are your Aadhar Card, PAN Card, Signature and Photograph. You can upload online copies of the same. If you wish to trade in derivatives, you will have to provide proof of your income as well. You will get your DP (Depository Participant) ID from the brokerage as well. This represents the first 8 digits of the account number. You should also keep the charges for these accounts in mind including AMC or annual maintenance charges as per SEBI regulations, Demat/remat charges wherever applicable, credit charges, taxes and cess, custodian charges (charged by depository partners annually or as a one-time payment), etc.
Why should you open a Demat account with Groww?
Groww offers a lot more than a simple Demat account; you get a two in one account for both trading and electronically holding your shares and securities, i.e. the Demat account. This naturally enhances overall convenience. The best part is that you can complete the whole account opening procedure in only 4-5 minutes, provided you have all the documents ready.
The procedure is completely paperless and can be done as per your own time and convenience. You only need to upload copies of a few basic documents for finishing the procedure. The online brokerage will then take care of the rest and get you started at the earliest. Additionally, setting up a Demat account here will help you invest in a diverse portfolio of stocks, mutual funds and other market instruments, all under one roof. This is another huge advantage for investors. You will also find insights, tips, guidance and invaluable market research that will help you take informed investment decisions.
Advantages of Groww Demat accounts
There are numerous benefits of setting up your Demat account here. Firstly, having these accounts means that you totally steer clear of risks arising from forger, damage, misplacement/loss or even theft of shares which are physically held. The convenient electronic system offered by Groww helps keep things much more convenient and simpler. You can complete your Demat account opening procedure in a matter of minutes.
The sheer convenience and time-saving nature of the online process is a major advantage indeed. Minimal paperwork is needed and these accounts offer major benefits in terms of easy remote access if you have registered net banking provisions with your financial institution. You can enable fund transfers electronically by merging Dematerialised accounts with bank accounts. You can also get the advantage of a nomination facility while those with a particular unit in their portfolio for securities, may even choose to keep their accounts frozen for a specific duration. This helps in bypassing transactions which are unwanted for a particular time period. With the app on your smartphone, you can easily operate your account and trade in shares/stocks as per your convenience. All in all, opening your Demat account is a simple process at Groww and you can benefit from the wealth of knowledge, insights and investment options on one platform.