The populace of India is gradually understanding the benefits of investing their money into stocks or equities. The most recent bull run showed us how investing our money into equities is much more profitable than fixed deposits or real estate. The number of retail investors in the stock market is increasing day by day. If you are also looking forward to investing in the stock market, you can get started by opening a Demat account. A Demat account is a core necessity if you want to invest in stocks trading on the stock exchanges or commodities trading on the MCX (Multi Commodity Exchange).
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What is a Demat Account?
Your Demat account functions similarly to your savings account, but your Demat account holds your shares instead of cash. Demat accounts have revolutionized investing, allowing you to have your investments in the electronic format. The Demat account is one of the main reasons online share trading is possible today. Along with a Demat account, a trading account is also necessary to buy and sell shares. You can simultaneously open both accounts by approaching a stockbroker. To invest in the stock market one must gauge how the market is. Sensex midcap is an index which can help.
Opening a Demat Account
As mentioned above, you open a Demat account with a stockbroker. However, many investors get demoralized when they visit the stockbroker’s website and learn that they have to pay a fee to open a Demat account. Every broker has its policies, so the charges and services offered vary from broker to broker. That is why some brokers choose to impose an account opening fee. However, IIFL Securities lets you open a Demat account for zero charges.
So, if you plan to open a Demat account, consider checking out IIFL Securities. To open a Demat account free with IIFL Securities, click – Demat account free.
Today, the brokers who are up-to-date with technology let you open a Demat account online. You visit the stockbroker’s website and click on the prompt to proceed with the Demat account opening process. You can also download the stock broker’s trading app on your smartphone. If you do not have a Demat account, click on the appropriate option and will be redirected to the Demat account opening page. You have to complete you online kyc registration to open the Demat account through a hassle-free process.
However, before opening a Demat account, you should make sure that the stockbroker is a registered depository participant (DP). A depository participant is a stockbroker authorized to provide Demat account services by SEBI (Securities and Exchange Board of India). You can check the list of DPs on the NSDL (National Securities Depository Limited) and CDSL (Central Depository Services Limited) websites. You are good to go if the broker is a registered depository participant with either the NSDL or the CDSL.
Documents Required to Open a Demat Account
On the Demat account open page, you must first fill in your email ID and phone number. Then, you fill in the online form for opening a Demat account. After filling out the form, you must submit some essential documents to authenticate your profile. The documents will help validate your identity, residential address, and income range. Submitting your PAN card is mandatory to open a Demat account. Besides that, these are the following documents accepted for authentication.
Identity Proof: PAN card, Aadhaar card, voter ID, passport, driver’s license.
Address Proof: Voter ID, passport, driver’s license, electricity or other utility bills
Income Proof: Recent Salary Slip, ITR (Income Tax Return) acknowledgment slip, Current bank account statement
It may take a couple of days for documents to get verified. Post that, you can start investing in the stock market.
How To Invest In The Stock Market?
To start investing in the markets, you download your stockbroker’s trading app, the IIFL Markets app, if you have opened your Demat account with IIFL. If you use a desktop or a laptop, you can access the markets using your broker’s web-based trading platform. You then search for the company whose shares you wish to invest in and then select the buy order option. You enter your bid and the quantity you want to purchase and place your order. The exchange receives your order, and you will receive your shares in your Demat account. It takes two trading days to credit the shares to your Demat account if your bid was successful.
With a Demat account free by IIFL Securities, you can access several premium features like stock-related news, stock ideas, and research reports. Apart from stocks, you can also activate the derivative segments, commodity segments, and currency segments. Then you can trade futures & options, commodity futures on the MCX, and currency futures. However, only experienced investors should deal with these segments as the risk is very high.