account or a Demat Account is your one-stop solution to hold all your
securities securely. There was a time when every share or security document was
available in the physical form. However, with the advent of Demat accounts,
these physical shares are now converted into electronic records. Having a Demat
account will facilitate the safekeeping of securities and ease trading.
open demat account online without
any delay. This has over the years made trading on shares easy, fast,
transparent, and far more reliable. A Demat account stores all types of
investments, funds, or securities that you hold as a portfolio. Gone are those
days when people had second thoughts before investing anywhere.
Just a few
decades back the share trading system here in India was clumsy. Moving papers
from one place to the other, chances of losing papers, etc., made share trading
less transparent. People started believing in share trading when the electronic
format was introduced.
Why having a Demat Account is necessary?
facilitate a faster and more convenient way to deal with securities than any
other means of trading. Let’s dive deeper and understand why having a Demat
account becomes necessary -
Way safer than
physical form - With a physical format of record-keeping, you always stand
a chance of losing out on documents. People invest in so many shares or stocks
and investments over the years.
And then we move
from one apartment to the other and have our house repainted. One fine day you
try to find all the documents and you notice some share certificates are
missing. With an online demat account,
you do not run the risks of losing documents relating to your investments.
There is no
chance of you misplacing, someone stealing from you or you damaging electronic
records of your investments. Not just that, your Demat account is always
guarded heavily with extra layers of security, statutory regulations, and
There is no
other way, anyway - Demat accounts these days are a prerequisite before
moving forward. All stock exchanges have mandatorily postulated the use of
Demat accounts before dealing in stocks and shares. Every time you wish to deal
with publicly listed shares you will have to go through the electronic processes
portfolio - Imagine this, that you may invest in Mutual Funds, some on Blue
Chip companies, and some with others. Would it not be nice to have all the
necessary documents and papers in one single place? People are more inclined
towards digitalization nowadays because of this reason alone. With a Demat
account, you can centralize all your investment files and store them in one
place, under one roof.
flexibility - You will be able to access your portfolio at any time of the
day without any delay or discrepancies. More importantly, you may choose to
observe how everything is going around your corner or decide to trade some of
can access your portfolio from every electronic device with an active internet.
Use your smartphone, tablet, or mobile phone devices to access or trade on
securities at your leisure or while you are on vacation.
My Shares, my
rules - Back in those days, such was not the norm. You could sell only a
prescribed amount of shares instead of singling out how much you wish to sell.
If you had 45 shares of a particular company while selling you had to share the
entire lot or a bunch of it. Demat accounts have successfully cut ties with
such a concept. Now you can easily single out on a single share and choose to
Cut down costs
- One of the reasons everyone accepted the electronification of the trading
processes. Why should I give away portions of my own money to middlemen? That
argument alone formed the genesis of digitalization and the introduction of
Demat accounts. Now, one can trade on shares, stocks, investments, etc.,
without having to pay for services like stamp duty and handling costs.
convenient, and translucent - With free
demat account opening across the country, trading in shares became way
faster than what it used to be. You can sell and buy shares within seconds
without wasting any time whatsoever.
entire process of share trading became much more transparent with this
How to Use your Demat Account?
Opening a Demat
account is like signing up before you enter any social media account -
You need to get yourself registered first and create an account. For that, you
need an active internet connection. As soon as you open your account you will
receive a transaction password, that you need to protect.
depository - Well, you have two options to choose from, - the National
Securities Depositories Limited (NSDL) and the Central Depository Services
Limited (CDSL). These depositories hold pools of shares which are pre-verified
to be traded in the electronic form. That means trading in shares approved by NSDL
and CDSL is safe and secure.
Be prepared for
an in-person verification - You need to submit your identity proof, PAN
card, passport-sized photograph of yourself, and address proof. Thereafter, an
official will visit you in person to verify every last detail.
number - Once your verification is over you will receive your ID number or
Demat Account number. You need to use your transaction password with this ID to
access your Demat portfolio.
- You need to open a trading account to smoothly buy and sell your securities.
Keep transaction history intact and refer back to figure out your investment
patterns, profits, and losses.
Have your shares
transferred to your Demat account after clearing broker fees. It will take
roughly about 3 days to have your shares transferred. Before agreeing to sign a
POA or Power of Attorney in favor of your broker make sure you go through every
clause. In case, your Demat agreement talks about non-issuance of ‘debit
instruction slips’ to you, clarify the term, and understand its implications.
So far as demat account opening charges are
concerned it is almost always zero or free! However, some stockbrokers while
opening Demat accounts on behalf of their clients do charge some money. While
others have a set range beyond which they charge Demat account opening
LKP is designed
to serve all your financial investment requirements. Their internet-based Demat
services are based on well-founded research and market analysis. LKP has
successfully handled major portfolios with utmost professionalism over the
years. Integrity and honesty are some of the crucial factors for why people
choose LKP securities.
provide the following services - Debt and money market broking, Category 1 merchant
banking, Margin funding & loans against shares, Mergers & Acquisitions,
Mutual Fund Distributors (AMFI registered), IPO distribution, and Life