Demat account is the first step towards your creating an investment portfolio in the stock market. But, do you know what exactly is a demat account and how to open demat account? Probably not! Well, don't worry as you are not the only one with these questions. Most people who are new to online trading or are planning to enter the stock market face these questions. The best demat account provider - Angel Broking is here to answer your questions and doubts related to demat accounts in India.
What is a demat account?
With integration of technology with stock market, shares and securities can be held in dematerialized form electronically. The account used to hold these dematerialized shares and securities of a client is termed as the demat account. Until a decade back, investors were provided with physical certificates that they had to hold in their possession. With demat account, physical storage of share certificates has been eliminated. Now, every share market investor has to open a demat account in India to enable electronic trade and settlement for shares and securities. Demat account has reduced the risks involved with handling of paper-based shares and securities.
To open a demat account, the investor needs to register himself with an investment broker or stock broker. The purpose of demat account is to enable transaction of shares in the electronic form. Opening a demat account is basically a two-step process, the steps include -
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