What is Demat Account?
Demat Account is a like a bank account for your share or securities that are held in an electronic format. Demat Account is short for dematerialisation account and holding investments like shares, bonds, government securities, Mutual Funds, Insurance and ETFs easier, etc.
Demat account is eliminating the need for physical handling and storage of paper shares.
डीमैट खाता आपके शेयर या प्रतिभूतियों के लिए एक बैंक खाते की तरह है जो इलेक्ट्रॉनिक प्रारूप में रखा जाता है। डीमैट खाता डीमैटरियलाइजेशन खाते का संक्षिप्त रूप है और शेयर, बांड, सरकारी प्रतिभूतियां, म्यूचुअल फंड, बीमा और ईटीएफ आदि जैसे निवेश को आसान बनाता है।
डीमैट खाता कागजी शेयरों के भौतिक प्रबंधन और भंडारण की आवश्यकता को समाप्त कर रहा है।
Types of Demat Account
- Regular Demat Account
- Repatriable Demat Account
- Non-Repatriable Demat Account
What are the eligibility criteria to open Demat Account?
- Resident Indian with an Savings/Salary Account
- Valid ID and address proof documents, specifically PAN Card and Aadhaar Card
- Your mobile number is linked to your Aadhaar
- Your PAN is linked to your Aadhaar
- Both adults and minors can open a Demat account. There is no minimum age to open a Demat account in India.
- If you are a minor, your Demat account can be opened by your parents or guardians in your name by submitting all the required documents. Until the age of 18, your parents or guardian will operate the Demat account.
Post 18 years, the DP will send you an intimation to gather KYC documents to open and transfer details to a new account.
Benefits of Demat Account
- Ease of Storage
- Easy Access
- Ease of Transfer
- No paper certificates
- Nominate Ease
- Security Of Shares
- No Forgery Or Theft
- Loan and Margin Facilities
- Eligibility for IPO and FPO
Features of Demat Account
- Speed e-facility
- Convenient asset holding
- Corporate action benefits
- Multiple Access Points
- Temporary freeze
