What is a Demat Account?
A Demat account lets you convert your shares and other Securities into electronic form and securely store them. Unlike a Bank account, a Demat account holds your Securities in one place. Investing and trading in stocks and other Securities have become easier with Demat accounts.
A Demat account holds a lot of benefits for its users and some of which are stated below:
- Loan collateral: You can get a secured loan on the Securities that you keep in your Demat account as collateral.
- Temporary freeze: If you face any issues which may be regarding security, you can temporarily freeze your Demat account.
- Quick transfer: As you have your Bank account linked to the Demat account, it offers transfer of funds, returns, and other benefits without any delay.
- E-facility: The whole process of opening and managing a Demat account can be done online, making it a convenient and hassle-free process.
One of India’s best online trading platforms to open a Demat account is IIFL Securities. It comes with numerous advantages such as:
- IIFL Securities’s financial services have been in this sector for a long time.
- They have some of the most qualified experts in India to guide you through your financial journey.
- The IIFL Securities professional research team provides an accurate analysis of stocks and companies that helps you make a smart investment/trading decision.
- The users benefit from strong customer assistance at all points during their journey.
- They provide paperless processes for opening accounts and trading/investing, reducing the efforts put in by the investors/traders.
- You can sit in the comfort of your home and invest at any time.
- The Demat Account Annual Maintenance Charges (AMC) are nil for the first year.
- They have minimal brokerage charges.
How to open a Demat account online
You can open an online Demat account with IIFL Securities by following 4 simple steps.
Step 1: Apply for a Demat account.
You can apply for a Demat account by visiting your DP’s website or application. You will have to submit some basic details and a digital signature to apply for a Demat account.
Step 2: Fill in your Bank Details
This step is very important, as it will link your Bank account with your Demat account to facilitate easy transfers. Provide the required Bank details to complete this step.
Step 3: Submit The KYC Details
Fulfill the KYC (Know Your Customer or Client) formalities.
You have to upload the required documents for KYC. The documents required during this step include:
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- Identity proof: PAN card
- Address proof: Voter’s identity card/ Driver’s license/ Passport/ Aadhaar card, etc.
- Bank account proof: Account passbook or Bank statement (not older than 3 months) can be submitted.
- Proof of your income: The latest salary slips or your Income Tax Return.
- PAN Card: It is mandatory to have a PAN Card to open a Demat account.
Step 4: Get your Documents Verified
On the completion of verification, you will get a unique 16-digit Demat account number known as Beneficiary Owner Identity (BOID). It will ensure a safe and secure trading/investing experience. Receiving this number means completing the process of opening a Demat account.
IIFL Securities provides you with one of India’s best platforms to invest and trade securely and smartly. They have an online trading app called IIFL Markets app, designed with a comprehensive set of features to ensure an excellent trading experience.