Want to Know about Free Demat Account?
Demat account means dematerialization account. This term is often used in the world of business and investing. It is so crucial for an investor to hold an account to invest in stocks. Interestingly, Demat has become extremely popular in recent years. The growth in the number of it’s holders has been largely driven by a dramatic shift in the savings habits of Indians from traditional fixed deposits to new options like stocks and shares.
If you are interested in the stock market and want to invest in stocks, the first step is to open a Demat account. Irrespective of your end goal, it is a prerequisite to carry out all stock market transactions. This article explains how to open a Demat and trading account.
What is a Demat account?
This account means a dematerialization account. Having a Demat makes it easy for an investor to hold shares and securities in electronic form. Specifically, this aims to convert share certificates from physical to electronic form, ultimately providing greater access to real holders.
List of Crucial Documents Required for Opening a Demat Account
To create opening a Demat easy and hassle-free, you should keep ready the important documents that you should submit while opening an account. Below is a list of required documents.
- Valid ID with your photo like Aadhaar Card, PAN Card, Voter ID, License, etc.
- Address certificate or proof of residence, e.g., registered rental agreement, driver’s license, passport, landline bill, electricity bill, apartment maintenance bill (if necessary), copy of insurance, gas bill, etc.
- Bank passbook or statement as proof of your bank account (not older than 6 months after receiving the documents).
- Your most recent salary or income tax returns (mandatory in the FX and Derivatives segment). This is your proof of income.
- Aadhar card must be linked with mobile number, and number should be running at the time of opening Demat account.
- Aadhar card should be linked with Digi Locker app.
Opening an account to Start Stock Investment
Opening this account is the initial step in an investor’s journey. However, you need a bank account, a Demat, and trading to start trading. This is simply a depository used to hold securities during this. A merchant account is required for real transactions. This account allows you to invest in a wide range of investment vehicles such as stocks, commodities, derivatives, and electronic gold.
If you find it difficult to manage three accounts for trading, you can choose a three-in-one account that facilitates smooth trading. Use three accounts together to reduce the time it takes to switch accounts, which can cause you to miss a good business opportunity.
- Account maintenance fees is 0 and other tax charges on trade are explained on the Gill Broking website. This helps the investor to compare different development partnerships according to their costs.
- Linking a Demat account with the trading account is important because a trading account is an important tool in stock trading.
What is the significance of a Demat account?
Demat accounts are used to invest in investments such as stocks, bonds, debentures, mutual funds, unit trusts, and even government securities. Having a Demat account is very important as it makes it easy for the investor to hold shares and securities in electronic form. It also facilitates and encourages people to take financial risks by investing in stocks.
Open free Demat account in India with Gill Broking by clicking here.