Open Demat Account Online | Demat Account Opening | Motilal Oswal

1. Demat Account

2. history of demat account • Trading for shares held in demat account form started at NSE in 1996. This was the beginning of a new era for the trading of paperless capital markets. • If an investor buys a share today, two days from now it will be credited to the investor's account. • Today, shares are moved to demat account of the investor.

3. what is demat account • A Demat account (short for Dematerialized account) is an account in electronic form for holding financial assets (equity or debt). • Two depositary bodies, National Securities Depository Limited and Central Depository Services Limited, operate Demat accounts opening in India. • A participant in the depositary like a bank, serves as an intermediary between the investor and the depository.

4. Benefits of Opening a demat account Following are The benefits of Opening a Demat account: • Very Easy and convenient way to hold securities • IT HAS Reduced transaction cost • No "odd lot" problem: even one share can be sold • It is much Safer than paper-shares (earlier risks associated with physical certificates such as bad delivery, fake securities, delays, thefts etc. are mostly eliminated) • Also it has Reduced paperwork for transfer of securities

5. how to open a demat account • To open a demat account, the individual needs to approach the DP and fill up the form for account opening. • Once the account opening form is duly filled, one needs to enclose the photocopies of the needed documents like the proof of identity and the proof of address. • After which, an agreement must be signed with the DP which has all the details about the duties of the trader as well as the DP. • The Demat account is then opened by the DP and the account holder is given the unique demat account number.  • All your investments are credited to the demat account. In case you sell the securities, the demat account is debited.

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