Executing a trade in the Indian stock market is not possible without a demat account. The beginners in the stock market often know how to open a demat account but do not know how to use it. In this article, we will guide you as to how to efficiently use a demat account.
Let us first understand what is demat account?
What is Demat Account?
A demat account is just like a bank account that holds your money. A demat account holds your shares or securities in an electronic form. The shares and securities are debited or credit from the demat account depending upon the buy or sell transaction. Without this account, no one can trade or invest in the Indian markets.
Let us now learn about how to use a demat account.
How to Use a Demat Account?
Using a demat account is very simple and easy. When you open a demat account with the broker a password is generated to give the online access to the account. All you need is an internet connection to operate it with a computer or mobile phone. Now the transaction of purchase or sell of securities can be done by you using the trading software. You can even transact by calling the broker and ordering the transaction on the phone. The time taken for credit or debit of shares in the demat account is T+2 days after the execution of the trade.
Since the demat account is very significant for carrying out transactions, it is important to learn how to open a demat account?
How to Open Demat Account?
- Contact the Depository Participant (DP) with whom you want to open the demat account and submit the necessary documents along with passport size photograph.
- The DP will give the document consisting of the rules and regulations for opening the account along with the charges applicable for the same.
- In-person verification would be carried out by a member of the DP and the details provided by you in the account opening form are cross verified.
- Once the application is processed, you will be provided with the account number and client ID. You can now use the demat account online as well.
The above-mentioned are the steps to open a demat account. If you are a beginner in the market and want to open a demat account, you can contact Kotak Securities.