How To Open a Best Demat Account in 2022

Demat Account || Equity investing has become a common practice in India as new retail investors are looking to make better profits than other investment avenues and multiply their wealth over time. The Securities and Exchange Board of India, which regulates the Indian securities market, has made tremendous efforts overtime to shift the investing process from physical to digital. Today, it takes a few clicks on the mobile or the laptop to seamlessly buy and sells shares. However, new investors face difficulties reaching the point of investing as they are not well-versed in the investing procedure. One of the most common difficulties is not knowing how to open a Demat account online.

Investing in equity shares requires having a Demat account, and it is a commonly used term in the realm of trading and investing. There has been a dramatic change in savings patterns among Indians, from traditional fixed deposits to new alternatives such as stocks and shares, increasing the number of Demat accounts. Furthermore, it has become increasingly popular to open a Demat account in the recent past. The popularity of these accounts has scaled new heights, with 10.7 million Demat accounts opened by 2021 singularly.

Since a Demat account is mandatory to invest in, it is important to know the steps to open a Demat account online. This article will help you learn everything you need to know about Demat accounts and how to open a Demat account.

What are Demat accounts, and how do they work?
In India, trading used to take place by transferring securities in the form of physical certificates. However, in 1996, the Securities and Exchange Board of India (SEBI) introduced Demat accounts in the country, and it revolutionized investing by making it a digital process. One of the most important factors introduced by SEBI was a Demat account.

‘Demat’ refers to dematerialization, a process by which physical securities are converted into electronic format. Therefore, a trader can use a Demat account to hold, transfer, and transact securities without the hassles of dealing with physical securities. As a result, trading has become a safer, quicker and much more efficient method of storing securities and executing trades.

Demat accounts are used for the dematerialization of shares. It is primarily used for investing in shares and securities in an electronic form that is more accessible with a Demat account. Specifically, these accounts are meant to convert share certificates from physical to electronic format, thereby providing greater accessibility for account holders.

Benefits of Opening a Demat Account With IIFL Securities

IIFL Securities is among India’s highest-rated and leading stockbrokers with over 25 years of financial market experience. It is one of the few stockbrokers registered with the National Securities Depository Limited (NSDL) and Central Depositories Services Limited (CDSL), allowing you to choose between the two as your depository institution. Being the most trustworthy stockbroker, IIFL provides the following benefits when you choose to open a Demat account with India Infoline.

Click Here to Open a Demat Account Online in Your Smart Phone

• Paperless Process: Opening a Demat account with IIFL is done using an advanced technology-backed online platform, which is quick and completely paper-free. All you have to do is visit the IIFL website or download the IIFL Markets app from the app store and fill out the Demat account opening form, which takes less than 5 minutes.
• User-Friendly Interface: The user interface of the IIFL trading platform and IIFL Markets app is easy to comprehend and use. It has numerous investor-oriented features to offer hassle-free and seamless trading and investing experience. The platform has very low latency, allowing for the trades to be executed instantaneously.
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• Cost-effective: Opening a Demat account with IIFL comes with the most cost-effective prices. When you open a Demat account with IIFL, it comes with zero account opening charges and free-of-cost account maintenance charges for the 1st year. Furthermore, a Demat account with IIFL has zero fees per order for ETF & Mutual Funds brokerage along with 0% interest on margin trading funding for 30 days.
• Goodwill: IIFL comes with 25 years of experience and customer trust with over 22 lakh happy customers. IIFL Markets app, which provides comprehensive trading and investing facilities to customers, has over 7 million downloads. Furthermore, IIFL has over 1,10,000 cores under its Asset Under Management which is among the top AUM holders in the financial market.
• Unique Trading Platform: When you open a Demat account with IIFL, you can access various unique features of the IIFL trading platform. With the account, you can track your favorite stocks directly from your home screen and set customized and actionable alerts. The platform also includes livestock charts with over 230+ indicators along with an advanced 20-level market depth.

Essential Documents Required for Opening a Demat Account with IIFL

Reaching the point of making your first investment includes numerous steps that may seem complex to a new investor. The most essential step is to know how to open a Demat account. However, opening a Demat account calls for presenting and submitting some essential documents needed at the time of opening the Demat account. With IIFL, the process of opening a Demat account is easy and quick and requires the following essential documents on the investor’s part:

• Proof of identity with a photo such as your Aadhaar card, PAN card, voter ID card, driving license, etc.
• Provide evidence of your residence, such as registered lease agreements, driver’s license, passports, landline telephone bills, electricity bills, apartment maintenance bills (if applicable), copy insurance, gas bills, etc.
• Your bank’s passbook or account statement will serve as your proof of bank account (must be no more than three months old).
• Your bank’s passbook or account statement will serve as your proof of bank account (must be no more than three months old).

Once you have collected all the documents, you can easily open a Demat account with IIFL. These documents make up a vital part of the steps to open a Demat account online. It is better that you have scanned copies of all the documents before you go to IIFL’s website or download the IIFL Markets app to open the Demat account. Furthermore, ensure that the information and pictures in the essential documents are visible before submitting them in the Demat account opening form.

Depository Participants

Understanding Depository Participants is the next step in learning how to open a Demat account. In India, the Depository Act of 1996 regulates the establishment and operation of a depository. SEBI is the governing body and regulates the functioning of any depository. NSDL and CDSL are the two major depositories in India.

National Securities Depository Limited (NSDL) is promoted by the National Stock Exchange, Industrial Development Bank of India, and Unit Trust of India. Furthermore, the Central Depository Services Limited (CDSL) is promoted by the Bombay Stock Exchange, State Bank of India, and the Bank of India.

What is the role of a depository?

Depository services play the following roles in the process of stock market operations.

1. Serves as a link: A depository acts as an intermediary. It intimates investors about transfer in ownership, periodic holding of investors, corporate action, and more. Similarly, companies can maintain shareholding data accurately based on the information provided by the depositories.
2. Create liquidity in the market: Depositories offer mortgages or loans against securities held by investors, which may be further utilised for the purchase of other securities. The liquidity offered by a depository to its clients is also referred to as margin. Further, depositories also lend the securities to other institutions and businesses and earn revenue from the same.
3. Invest on the go: With the introduction of a depository, investors can invest in huge volumes from anywhere in the world. Investors may invest in IPOs and ETFs and trade on a large scale with a depository.

Steps for Opening a Demat Account

Step 1 – Fill the Details and Submit the Demat Account Opening Form

• Download App:Click Here to Open a Demat Account Online in Your Smart Phone
• Fill the online form for opening a free demat account with IIFL Securities. Fill in mandatory details like your mobile number and email id in the online form.

Step 2 – Submit Supporting Documents for Opening Demat Account

• Share your PAN Card and Bank details. Enter your accurate PAN number and bank details through which you wish to transact.

Step 3 – Complete E-KYC Process and Receive Demat Account Number

• Get your KYC details verified online. The verification of the your KYC details is done online
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