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What is a Demat Account?
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.
Features & Benefits of Demat Account
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:
Dematerialisation
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.
High Accessibility
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.
High Security
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.
Seamless Transfer of Securities
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.
Single Account for Different Holdings
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.
No Stamp duty charges
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.
Why Open a Demat Account with Religare Broking?
There are many Demat account providers in the market. Here’s why Religare Broking stands out:
Some DPs (Depository Participants) might not offer brokerage accounts with dematerialisation accounts. Religare Broking is a one-stop solution for both brokerage and dematerialisation accounts. Investors can open 2-in-1 accounts with Religare Broking. Your brokerage and Demat account will be linked for secure trading. A trading account will offer access to a wide range of securities for trading. On the other hand, the dematerialisation account will hold electronic securities.
Religare Broking also offers several trading platforms to investors for research and analysis. You can rely on Religare Dynami, a new-age trading app for investors. You can choose the web-based trading platform for enhanced trading and research. An investment platform will extend access to the Demat cum trading account. Not to forget, you can browse different securities and funds with the investment platform. You can compare different securities and analyse their historical performance with an investment platform.
Religare Broking is not done after offering you an investment platform. It will also provide market reports, stock screeners, upcoming IPO lists, and other research materials. Religare Broking also offers personalised research services. With advanced research and investment analysis, you can make informed decisions.
Investors need constant support from the stockbroker after they open Demat accounts. They often require support for corporate actions like bonus issues, stock splits, or dividends. Religare will manage these corporate actions on your behalf and adjust the portfolio accordingly.
Investors will have access to different markets for trading. You can trade commodities, currencies, mutual funds, stocks, bonds, derivatives, and other securities. It will help you build a diverse portfolio and achieve financial goals.
Steps for Demat Account Opening
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:
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Form Fill up
Fill up your personal details in the form above
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Share Personal Details
Fill up your DOB, PAN, email & bank account details
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OTP Authentication
Upload your photo and e-sign your application via Aadhaar OTP
Documents Required
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
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Proof of identity : Aadhar card, Passport, Voter ID, Driving license or PAN card
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Proof of address : Aadhar card, Passport, Voter ID, Driving license or Bank account statement
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Bank account details: Cancelled cheque
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Proof of income : ITR return, Recent salary slip, Form 16 or 6 month bank statement
What We Offer? – Investment Options at Religare Broking
Open a Demat account with Religare Broking and gain access to a wide range of securities, like:
Equity
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.
Mutual Funds & ETFs
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
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.
Commodities
Religare Broking facilitates commodity trading. Investors can trade raw materials, metals, and other commodities through financial contracts.
Currencies
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.
IPOs
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 and Fixed-Income Securities
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.
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How does a Demat Account Help in Buying and Selling for Shares?
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.
Our Awards & Accolades
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:
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‘Regional Retail Member of the Year – North’ – NSE Market Achievers Awards 2018
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‘Pension Champion Trophy’ in 2018 for achieving targets under the National Pension System (NPS) campaign (Non-Bank Category)
User Testimonials
Religare made trading a breeze. Efficient, reliable, and user-friendly platform!
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I am impressed with Religare's prompt customer support and seamless trading experience.
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I Highly recommend Religare for its comprehensive market insights and investment advice.
Virat
Religare's research reports are insightful, helping me make informed investment decisions.
Shreyas
Things to Consider Before Opening a Demat Account
Now that you understand how to open a Demat account let us discuss the factors to consider before applying:
- Trading Account Facility: It is essential to check whether your dematerialisation account provider also offers brokerage account facilities. You can choose Religare Broking to open a 2-in-1 trading and Demat account.
- Investment Platform Facility: Choose a dematerialisation account provider that also offers an investment platform. A trading or investment platform will help with research, analysis, and informed decision-making.
- Account Charges: Consider the associated demat account charges Before opening an account. Service providers apply annual maintenance, custodian, dematerialisation, and other charges.
- Security: Before applying for a dematerialisation account, you must consider the security features. Check for password protection, encryption, and other authentication techniques.
- User Interface: Investors usually log in to their holding accounts through trading platforms. Check the platform's user interface for easy access to the holding account.
- Customer Support: Choose a stockbroker or depository participant that offers customer support for issues with dematerialisation accounts. You can choose Religare, which offers unmatched customer support to Demat account users.
Why You Should Invest in Share Market
After the Demat account opening, you are ready to invest in the share market. Here are some reasons to invest in the share market:
The value of shares might grow with time, thus leaving room for capital appreciation. When the value of stocks increases, investors have a chance to earn multifold returns.
Stocks can help you build a diverse portfolio and spread risks. You can invest in stocks of diverse companies belonging to different industry sectors. You can also invest in startups and established companies to spread the risk. Many investors choose stocks of small, mid, and large-cap companies in their portfolio for diversification.
After investors open Demat accounts, it becomes easy to hold stocks. You can hold electronic stocks of different companies via a dematerialisation account.
Many companies offer a part of the profit to existing shareholders. The profit distributed to shareholders is known as a dividend. You might earn dividends by investing in stocks of dividend-giving companies.
A bonus issue is a corporate action through which a company distributes additional shares to existing shareholders. Some companies might offer additional shares instead of dividends.
FAQs
A: There are two main types of demat accounts: Regular and Repatriable (NRI). Regular accounts are for residents of India to trade in the Indian stock market. NRI accounts cater to Non-Resident Indians, allowing them to buy and sell Indian securities while complying with RBI regulations.
Any Indian resident, Non-Resident Indian (NRI), or Foreign Institutional Investor (FII) can open a Demat account. Additionally, minors can have an account with a guardian. It's a crucial step for trading and holding securities in electronic form in India's financial market.
Yes, an NRI (Non-Resident Indian) can open a Demat account in India. It allows NRIs to trade in the Indian stock market and hold securities electronically. The process involves providing the designated depository participant with necessary documents, such as proof of identity, address, and status as an NRI.
Yes, you can open multiple Demat accounts. There's no restriction on the number of accounts one can hold. However, ensuring compliance with SEBI guidelines and providing accurate information during account opening is important. Managing multiple accounts may require additional attention to prevent any confusion or discrepancies.