06/12/2020 Business Opportunities, Franchise
How to Open a Demat Account?
Instant Account Opening Link: https://bit.ly/2X1YguD
Demat Account Opening Guide:
‘Demat account’ is a frequently used term in the world of trading and investments. The popularity of these accounts has scaled new heights with close to 4 million Demat accounts opened in 2018 singularly, a 13% increase from the previous year.
The dramatic shift in the savings pattern of Indians from traditional instruments to available alternatives such as stocks is primarily responsible for the jump.
Increasing demand for these accounts has also led to depository participants offering the best features at minimum costs, thus benefiting investors. Plus, SEBI has mandated holding a Demat account for stock market trading.
Demat Account in India: Understanding the Basics
It is a process that facilitates the conversion of share certificates from physical to the electronic form. Shares held thereafter are easier to manage while providing more accessibility from anywhere around the globe
A depository participant acts as an intermediary or agent of a central depository and provides namesake services to investors and traders. India currently has two central depositories registered with the apex trading and investment regulatory body SEBI.
A depository participant must, therefore, be registered with either of these two licensed operators to open a Demat account.
Unique 16-digit client ID
Each Demat account is assigned with a unique 16-digit client ID that acts as the investor’s identity. The first 8 digits of the ID represent the depository participant while the last 8 digits act as a unique identification for the investor, facilitating sale or purchase of shares and securities.
A Step-by-Step Guide on How to Open a Demat Account?
Opening a Demat account is quite a straightforward process. If you’re interested in opening one, this step-by-step guide can help put things in perspective.
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