InvestorQ : how to open demat account?
riyasat made post

how to open demat account?

Priyanka N answered.
1 year ago

A demat account is your ticket to trading in the stock market. A demat account is your bank account for shares and other securities. India shifted out of physical share certificates in 1997 and entered the demat era. Since then there has been tremendous growth in the total number of demat accounts and the quantum and volumes of trading in the Indian markets.

More than 99% of the outstanding shares have already been dematerialized and 100% of all the trades and settlements in thestock markets happen only through the demat mode. Let us start with how to open a demat account.

Your decision to open a demat account starts with your intent to hold your shares in demat and participate in the stock markets. Nowadays, when you open a trading account with a broker, the demat account is opened along with that. The idea is that SEBI regulations require you to open a demat account with a registered DP before you can trade in the cash market. The documentation is the same for trading and demat, although you need to execute separate agreements with the DP for the two accounts.