What is demat account in English Hello friends, we hear daily that the price goes up and down in the stock market every day. After the stock goes up and down. Do you know how shares are bought and sold in the stock market? For this, first of all, a Demat account is needed.
In this article of ours, we are going to tell you about how you can open Demat Account, what is the name of Demat Account? Let us know and understand about this whole process.
- What is Demat Account?
- How to open Demat Account?
- Transfer money to Demat account
- Demat account opening charges
- Some frequently asked questions and their answers about what is demat account in English
What is Demat Account?
Demat account is used when you buy and sell shares in the share market . The way you keep your money in the bank, similarly the money used in the stock market is also kept in the Demat Account. Whenever you open your Demat Account, it is also like a normal bank account.
Demat account is used only for the transaction of money which is used for trading. To put money in this account, we have to put it from our normal bank account.
In other words, to buy shares digitally, we use Demat Account. The full name of Demat Account is Dematerialize. Earlier you had to do this work offline i.e. to open Demat account you have to go offline first but currently it can be done online.
Documents required to open Demat Account
Whenever we open an account, we need some important documents. Similarly, for opening a Demat account, we also need some important documents. All these documents are required.
Pan Card – To open Demat Account, we first need our PAN card. Whenever we buy and sell shares, there is a need for financial transactions. PAN card is used for the same transaction information.
Aadhar Card – Apart from this, we also need our Aadhar card. These Aadhar cards are for the use of our information.
Passport Size Photo – Apart from Aadhar Card and Pan Card, we also need our passport size photograph.
Bank information – For bank account information, you can either give bank passbook or canceled check.
These are the necessary documents which are required to open Demat Account.
Benefits of opening a Demat Account
If you open a Demat account, then there are some benefits that you need to know.
- When we open a Demat Account, we get the option to buy and sell shares through digital medium. At the same time, the chances of fraud and loss would have been enough or negligible.
- Earlier, when it used to work offline, then it used to take months for the transfer of shares, at present it takes very less and negligible time to buy and sell shares through online.
- Earlier it used to be that whenever we used to buy shares, we had to buy and sell shares in large quantities, but today we can buy and sell a share through Demat Account.
- Buying and selling of shares has become very easy with Demat Account.
How to open Demat Account?
Demat account can be opened easily through 2 means. In this one, you can open this account through the bank and secondly through any application, you have some advantages in both of them which increases the stability of your account.
Demat Account Opening Through Bank
If you want to open this account through the bank, then for that you have to go to your nearest bank with the prescribed documents. After that there you have to take the account opening form in the bank.
While opening the account, keep in mind that you are actually opening a Demat Account. After this you can easily buy and sell shares and do transactions in it by following the prescribed procedure of that bank.
Open Demat Account through Application
If you want to open Demat Account through the application, then you may have to follow some easy process for that. Before that, you need to know about some such applications which open this type of account. Here are some applications –
Zerodha – This is the first application on our list to open this account. Ordinary people talk about this application if you ask them that we have to open Demat Account. We will tell you further the process of opening an account through this application and also how you can open an account in this application.
5Paisa – Apart from Zerodha, 5Paisa is also a company that helps you to open Demat Account. This is our second best and best application in this list. Apart from buying and selling shares in this application, you can also invest in Commodity etc.
Upstox – Apart from these two applications, this is also one such application through which you can easily open Demat Account. In this application, apart from shares, you can also buy and sell products like gold and silver.
You can follow this process to open Demat Account –
In this process, you are going to tell the process through Zerodha Application. While opening the account in this application, you have to keep all your documents and your signature on a white paper. Only then follow this process.
Step 1 – First of all you have to install this application on your mobile.
Step 2 – After this you will see the option of New Account / Register, click on it. After this it will take you to the official website of Zerodha.
Step 3 – After this you have to fill your personal information in it.
Step 4 – After filling your information, you have to upload your documents in it. Along with uploading the document, you have to take a live photo of yourself and after that you have to put your signature in it.
Step 5 – After this you have to submit this form.
After submitting you have to wait till this account is fully activated. After this your ID and password will be sent to you via email and your account will be activated.
This is a common process and this process can be used in almost all applications.
Transfer money to Demat account
Transferring money to Demat Account or withdrawing money from this account is quite easy. But there are some certain conditions for this, or rather there are some such rules which make this policy a little safe.
- In the Demat account, one of your accounts has to be linked first. After linking this account, you have to do transaction with the same account which is linked in it.
- If you do a transaction with any other account, then the payment will fail as well as your pisa will also go away.
- In Demat Account, you can not only do money transactions, but in this you can also buy shares in the stock market.
These are some general points you should know about.
Demat account opening charges
If you open a Demat Account, then you have to pay some fixed charges for it. This charge can be on month as well as on year. We can not give any specific information about this charge because this charge can be different for every company but in a general information it can be 400 – 500 rupees per year. You have to pay this charge to the company from where you open Demat account like Zerodha, 5paisa, Grow etc.
Some frequently asked questions and their answers about what is demat account in English
Here we have answered some of the most frequently asked questions related to Demat Account.
Q: Where is the Demat account opened?
You can open Demat account through applications like Zerodha and 5paisa.
Q: What is Demat account used for?
You can buy and sell shares through Demat account.
Q: What are the charges for Demat account?
Generally 400 – 500 annually.
Q: Is it necessary to open Demat account?
These are essential for buying and selling shares.
Q: In how many days the money from Demat account comes to the bank account?
In maximum of 2 working days, your money is credited to your account.
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