Before you open a Demat account, it is essential to understand its purpose. A Demat or dematerialisation account is used to hold electronic securities for as long as you want. It facilitates the process, through which securities are digitized or dematerialised. People used to carry physical trade certificates before the launch of this service in 1996 in India. Since carrying and storing trade certificates is challenging, you can now open a Demat account online. Religare Broking can help with Demat account opening online so you can start your investment journey. Learn more about the demat account at our Knowledge Center.
Dematerialisation accounts allow investors to build diverse portfolios. One can hold a wide range of securities within a dematerialisation account and build a diverse portfolio. Stocks, derivatives, bonds, mutual fund units, and other securities are stored in dematerialisation accounts. An investor is allowed to have multiple dematerialisation accounts for trading. However, ensuring that your dematerialisation account is linked with the brokerage/trading account is crucial. Here are some benefits of a demat account opening you must consider:
Demat accounts are essential for the dematerialisation of securities. You cannot always depend on physical trade certificates issued by stock exchanges. Physical certificates can get lost or stolen. There have also been some cases of forged physical certificates. You don’t have to worry about anything with a dematerialisation account, as securities are stored in their electronic form.
A dematerialisation account offers easy access to your portfolio holdings. You can use a smartphone, laptop, tablet, or any other device to log in to your dematerialisation account. Usually, investors use a trading platform to log in to their dematerialisation accounts. With enhanced accessibility, you can track your portfolio at all times.
Your electronic securities are always safe in your dematerialisation account. These accounts are protected via several layers of authentication to prevent unauthorized access. Your dematerialisation will also be password-protected. However, investors must not share their passwords with anyone.
When you open a Demat account, it is linked with the brokerage account. It allows faster settlement of trades in the dematerialisation account. When you purchase securities via the brokerage account, they are credited to the dematerialisation account. Similarly, securities are debited from the dematerialisation account when you decide to sell them in the market.
A dematerialisation account allows you to hold different types of assets. You can hold stocks, bonds, mutual fund units, or other securities within the same dematerialisation account. Since all your holdings are in one place, tracking them and making informed decisions becomes easy.
It saves you from stamp duty charges, as they hold electronic securities. Since you aren’t holding physical trade certificates, there will be no duty charges. Annual maintenance charges , custodian, and other charges are also nominal.
There are many Demat account providers in the market. Here’s why Religare Broking stands out:
Investors can now apply for new dematerialisation accounts online with Religare Broking. The online process for a new account is fast and fully secure. Follow these steps to open a dematerialisation with Religare Broking online:
Fill up your personal details in the form above
Fill up your DOB, PAN, email & bank account details
Upload your photo and e-sign your application via Aadhaar OTP
Stockbrokers open Demat accounts only after verifying KYC documents. Securities and Exchange Board of India (SEBI) has made it mandatory for stockbrokers to verify KYC documents before offering services. KYC (Know Your Customer) is a process through which Religare Broking verifies your identity, address, and other details. Here are the KYC documents you must upload online to open a Demat account
Open a Demat account with Religare Broking and gain access to a wide range of securities, like:
You can invest in stocks of different companies to build a diverse portfolio. Our trading platform lets you find and invest in blue-chip, junk, high-growth, undervalued and other stock types with ease.
Religare allows you to browse different mutual fund schemes and choose the right one. Investing in a mutual fund scheme can compound your returns and build substantial wealth. Invest a lump sum amount in a mutual fund through the trading platform.
Derivatives are financial contracts whose performance depends on the underlying assets. Investors can speculate on future prices of securities through financial contracts. Religare Broking offers access to many futures and options contracts.
Religare Broking facilitates commodity trading. Investors can trade raw materials, metals, and other commodities through financial contracts.
Investors can make profits on price movements of currencies. Currency pairs are traded on the foreign exchange market. Religare Broking provides everything you need for currency trading.
Demat account opening can help you apply for IPOs (Initial Public Offerings). You can invest in an IPO to purchase shares of a newly-turned public company. As the company grows with time, you can get higher returns on your investment. With a trading platform, investors can keep track of upcoming IPOs in India.
Debt or fixed-income securities can help individuals with a steady source of income. They represent loan or debt obligations by government and corporate entities. These entities issue debt or fixed-income securities to raise capital.
You must place an order via your brokerage account to purchase shares. You can place a market order to buy shares at the current market price. You can also place a limit or stop-loss order with the brokerage account. When your order is executed, shares are transferred to your Demat account. The process of transferring shares from one demat account to another account is called settlement. Similarly, shares are debited from your dematerialisation account when you decide to sell them. It will be checked whether you have the shares you are trying to sell. After verification, a sale order is placed.
You become the legal owner once shares are transferred to your dematerialisation account. They will not be debited from your account until you place a sell order via the brokerage account. After every purchase or sale, you will receive a confirmation. You can check the dematerialisation account to confirm your holdings anytime. The settlement of a purchase or sale order will happen automatically and overseen by the stockbroker. Besides stocks, a dematerialisation account helps with the trade of many other securities. You don’t have to delve into technicalities, as investors only place sale or purchase orders.
The parent company of Religare Broking has won many accolades over the years. REL (Religare Enterprises Limited) has won more than 70 awards between 2008 and 2021. Religare Commodities Limited, Religare Securities Limited, and other subsidiaries have won many awards. Here are some awards won by Religare Broking:
Now that you understand how to open a Demat account let us discuss the factors to consider before applying:
After the Demat account opening, you are ready to invest in the share market. Here are some reasons to invest in the share market: