Demat Account Meaning is dematerialized account. as we know account books are used for keeping a record of the transaction. we are all aware of the saving account that fulfills our banking purpose.
Like – Withdrawals and deposits with records of these transactions.
Similarly, the Demat account keeps a record of the shares transactions in electronic form. Share purchases or sales with the help of a trading account.
Note: Open Demat and Trading account with a simple online process.
Demat Account Meaning:
A Demat account is an online record book that keeps a record of online share transactions in electronic form done by you.
It’s similar to a saving account as you can park or deposit your money to a saving account similarly you can park your electronic form of shares into a Demat account traded through a trading account.
If you want to invest in the share market you need to open a Demat account without a Demat account you can not invest in to share market
Other financial instruments like insurance and FD are available without a Demat account but to be a trader or investor in the share market you need to open a Demat account.
What is a Demat account:
A Demat Account is an account to hold financial instruments like – Shares, Bonds, Government Securities, Mutual Funds, Etc.
It’s an account to make easy handling of shares and other financial instruments. It’s an easy online process. it vanished physical handling of financial instruments.
Demat account digitalizes the trading process in India and improves SEBI control over the share market.
What is dematerialization:
Dematerialization is the process of converting physical shares into digital form or electronic form as we know in the nineties physical form was popular. Physical certificates were issued by authorities.
You were required to keep the certificate and records of share safely. But dematerialization benefited us now we don’t require to keep the physical certificate.
Importance of Demat Account:
A Demat account provides us easy trading facility. Along with proper record maintenance of transactions, as a result, we get accurate data.
It minimizes the risk of – Loss and theft of a physical certificate. Provide us with handy data that we can use to calculate our invested amount and the opportunity to invest the amount.
There are the following advantages to opening a Demat account
Benefits of opening a Demat account:
- Acute and easy transfer of shares
- Provide a secure place for stock
- Minimize risk of theft, loss, and damage to stock
- Simple trading and tracking facility
- 24*7 accessible opportunity
- Auto credit of bonus stock
- Facilitate to add beneficiary
- Record shares in electronic form
How to get a Demat account online
Nowadays it’s very easy to open a Demat account. Now you don’t need to go to any office and fill out the form to open a Demat account.
Now you can open a Demat account with Upstox online process.
Just click on the link and follow the simple process it will take hardly 5 minutes to open a Demat account
You can start trading in the share market just in five minutes.
How does a Demat account work:
Online Trading through a Demat account is a very simple process you just need to link your Demat account with a trading account.
Actually linking is done while opening the Demat account. while opening a Demat account you will get the process to link your trading account.
For easy trading and transfer of money, you will be asked to link your saving account. this will help you in the transfer of money.
You can withdraw your money from your trading wallet to your saving account in just one simple click.
Now you begin trading by placing an order through an online trading account. Now the placed order will be processed by the exchange.
The exchange will check all the detail like the Demat account detail availability of shares on the mentioned price. once the verification is done you will get your purchased share in your Demat account.
Now if you want to sell the share place the instruction through a trading account once the share price meets the given sale price your share will get sold and you will get money into your trading account.
What is an electronic form of share:
The share is issued by the company in a digital form called an electronic form of shares. It means a physical form of share does not exist.
