Benefits of Having a Demat Account

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Everybody loves to invest money. By investing money people can even grow their money. Investing in the stock market can be the best way to grow money. People can buy and sell stocks in the stock market. There are chances of both profit and loss when people invest their money. Though there is risk involved in investment, there are also rewards associated with the risk. But before investing in the stock market people must have a Demat account. This account helps people to change their shares in an electrical form. The process of opening a Demat account is very easy.

Benefits of Having a Demat Account

Demat is the short form for the term dematerialization. Dematerialization helps to change physical shares into an electrical secured form. This form of account is necessary for holding shares of electrical form in place of paper form. The shares owned by a person are secure when they have an account. This avoids any loss of shares.

Steps to open a Demat account:

The process of opening an investment account is very simple. People think of it to be a very complex process. Some of the steps that are involved in opening an account are as follows:

  • First step includes selecting a depository partner.
  • Second step involves the filling of the Demat request form.
  • Third step is the verification of documents in which the candidate has to submit some of the important documents needed for verification.
    Fourth step includes an agreement between the depository partner and the candidate.
  • Last step is account creation. After the documents of the investor are verified his account is successfully created.

The process of opening an account is easy to understand for investors. The investor is required to present all physical documents possessed by him in front of the depository partner for the process of dematerialization. Before converting physical shares into an electrical form the depository partner sends an update to the investor. The certificates of the investor are presented in front of the registrar of the company.

The registrar performs the duty of confirming the request of opening an account after discussing with the depository. The documents of the investor are then scrutinized and verified. After verifying all the certificates and documents an account in the name of the investor is created. With the help of this account the physical shares of the investor can be easily converted into electrical form.

There are also different types of investment accounts. The three types of accounts that are most popular are the regular Demat account, the repatriable account,non-repatriable account. People who have a share account in their name can buy and sell shares easily in the money market. They only need some knowledge about the market and how they can buy and sell stocks. People have the freedom to invest in the company they like. The money market is the biggest investment market. A lot of people invest in the stock market nowadays.

The best way to open an account for the stock market is by using the 5paisa application. The app is cost effective, accessible to everyone. It is very easy to use.

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