Demat Account – The First Step towards a Wealthier Life.

In recent times, many businesses have taken a dip, but thankfully, financial markets have seen a surge. Stock markets are acting as a refuge for many.Plenty of investors are making thousands and lakhs investing across different asset categories. But these investments would have been possible without one key factor – DematAccount. A Demat Account is integral for investing in financial markets. If you don’t have a Demat Account already, I’m sure you will sign up for one after reading this article.

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What is a Demat Account, and what makes it so important?

A Demat Account is an electronic account that stores all your financial investments like shares, mutual funds, securities,debentures, bonds, etc. Earlier, shared certificates and security documents used to be stored in a physical paper format. But a physical format of such important and valuable documents posed several threats of loss,theft, damage due to fire, etc. A Demat Account is digital and hence eradicates all these risks. It is a new-age format of storing financial assets safely.

EveryDemat Account has a unique code through which companies and AMCs (Asset Management Companies) identify you to debit and credit shares and securities from and to your account. Another exciting aspect of aDematAccountis linked to your Bank Account and your Trading Account.The example below will help you understand how it works.

Let’s assume you buy a share of a company. Your Trading Account facilitates this transaction by debiting money from your Bank Account to purchase the share. After that, the share that was purchased through your Trading Account gets credited to your Demat Account. Conversely, when you sell a share, your Trading Account debits the share from your Demat Account and credits the money received against it to your Bank Account.

That makes the Demat Account a mandatory element in all financial securities transactions. A Demat Accountis a prerequisite if you want to buy or sell financial assets.

Key benefits of having a Demat Account

Digital Account

The most basic advantage of a Demat Account is its digital nature. This factor makes it possible for us to access and manage our account easily by using any digital screen – be it a phone, a tablet, a desktop, or a laptop.

Minimum Time

Since Demat Accounts are digital, the time required to process trades is lightning fast. The electronic transfer of shares and securities is seamless and it eliminates the scope of longer tenures required to physically transport certificates.

Safety of Financial Assets

Your shares and other securities are the most secure in a Demat Account as they are stored electronically. It eliminates every risk of theft, forgery, loss, damage, etc.

Low Cost

There is no requirement of any physical filing or paperwork in a Demat Account. This erases quite a few costs for holding securities and makes it cheaper and quicker to buy, sell, and store shares and securities.

Now that we have established the importance of a Demat Account, let’s clear another doubt that maybe lingering in your mind – Can I open a Demat Account.

Eligibility Criteria to Open a Demat Account

You can open a Demat Account, irrespective of your age. In case you are a minor, your guardian can open this account for you. As Demat is linked to your Bank and Trading Account, you will need to provide proofs that establish that you hold both of these accounts and that they are functional. Besides this, there are some mandatory regular documents that you will require to complete your process. These include your PAN card, income proof, and address proof.

How to Open a Demat Account?

It is easy to open a Demat Account. You can open one effortlessly with a registered brokerage company such as ICICI Direct. Whether you are looking to open an account online or offline, they will help you out. The process to open a Demat Account is as quick and straightforward as opening a bank account. Your only actionable in opening a DematAccount is to fill up an account opening form and submit some mandatory documents along with it. Your registered broker will then conduct an in-person verification and complete the process by providing you with your account details.

You can initiate the process to open your Demat Account right now as well. Simply click here and thank me later.

Conclusion

Investments are a fantastic way to grow your money. And you cannot make any financial investments without a Demat Account. So, don’t procrastinate. Start your journey to wealthier ways by applying for a Demat Account immediately (in case you don’t have one already!).

Disclaimer

ICICI Securities Ltd.( I-Sec). Registered office of I-Sec is at ICICI Securities Ltd. – ICICI Venture House, AppasahebMarathe Marg, Mumbai – 400025, India, Tel No : 022 – 2288 2460, 022 – 2288 2470. I-Sec is a Member of National Stock Exchange of India Ltd (Member Code :07730) and BSE Ltd (Member Code :103) and having SEBI registration no. INZ000183631. Name of the Compliance officer (broking): Mr. Anoop Goyal, Contact number: 022-40701000, E-mail address: [email protected]. SEBI research analyst Registration no.-INH000000990.

The non-broking products / services like Mutual Funds, Insurance, FD/ Bonds, loans, PMS, Tax, Elocker, NPS, IPO, Research, Financial Learning etc. are not exchange traded products / services and ICICI Securities Ltd. is just acting as a distributor/ referral Agent of such products / services and all disputes with respect to the distribution activity would not have access to Exchange investor redressal or Arbitration mechanism.

Investment in securities market are subject to market risks, read all the related documents carefully before investing. The contents herein above shall not be considered as an invitation or persuasion to trade or invest. I-Sec and affiliates accept no liabilities for any loss or damage of any kind arising out of any actions taken in reliance thereon.