• HDFC securities
• 29 Dec 2022
• Open Demat Account

Investing in the equity market has gained traction among retail investors recently. With the advent of modern technology, investing in financial markets has gone from physical to digital, and investors can trade from anywhere with just a few clicks on a smartphone.

The primary requirement to trade in the stock market is the Demat account. This article highlights what is a Demat account and how to open a Demat account.

 

What is a Demat account?

Demat refers to dematerialization. It is a process to convert your physical shares and securities into a dematerialized or electronic form. Hence, a demat account is created to hold financial securities like stocks, bonds, mutual funds, exchange-traded funds (ETFs), etc., in a dematerialized form.

You can transfer or transact your shares and securities through a demat account electronically in a safer and quick way. When you place an order to buy shares, they get credited to your demat account, and when you sell those, they get debited from the demat account.

However, you need to open a trading account with a stockbroker to purchase and sell shares and other securities. A trading account is different from a demat account. While a trading account is used to place buy or sell orders in the stock market, a demat account stores the shares bought.

How to Open Demat Account?

Demat account is mandatory for investing in the stock market. You can open a demat account online with your stockbroker. HDFC Securities offers an easy demat account opening process with no paperwork using premier technology, and that too, with very low brokerage plans.

You can open a demat account easily without stepping out of your home by following some simple steps.

• Choose a Depository Participant

Firstly, you choose a Depository Participant (DP) with whom you want to open a demat account. These are stockbrokers or banks. You need to consider and analyse the services they offer and their market reputation.

• Share Basic Details

After selecting the DP, visit their website and fill up the online account opening form. You need to share basic details such as your name, contact number, PAN details, email id, residential address, etc.

 

• Add Bank Account Details

You have to share your bank account details, including the account number, IFSC code, etc. This process is necessary to receive the dividend or interest.

• Uploading of Documents

Now you have to upload certain mandatory documents, such as your identity proof, address proof, photo, etc.

 

• Verification

The process of in-person verification is now digitized. You can do this and confirm your identity by recording a short video of yourself. You just have to read out the given script, which is your personal detail, in the video.

 

• E-Sign

You need to sign your application digitally. This can be done through your mobile number that is linked to your Aadhaar.

 

• Form Submission

Finally, after completing all these steps, you need to submit the form. Check all the details thoroughly filled in the form before submitting.

 

Once your demat account is opened, the DP will provide your Client ID, DP ID, Power of Attorney (POA) number, etc.

You can get started with HDFC Securities by opening your demat account, which offers you a safe and seamless service to track your investments.