How Demat Account Works in India?

NSDL operates under NSE and CDSL operates under BSE. A depository is similar to a bank where securities are held in an electronic form.

When investors buy shares, their respective broker credits them from the investor’s account accordingly and an investor can view their holdings online or in the holding statement.

When an investor needs to sell shares, he/she needs to give a delivery instruction note in which details of shares sold are filled, to their respective broker. The account is debited and the investor is paid for the shares being sold. In the case of online trading, the account will spontaneously reflect the stocks sold and the amount credited to the account.

What Is a Demat Account?

A Demat Account is an account that allows investors to hold their shares in an electronic form. The abbreviation of a Demat Account is Dematerialisation Account. To open a free Demat account online, you need to upload few documents. A Demat account number is compulsory to enable electronic settlements of all the trades.

A Demat account is similar to a bank account, where you hold your money and respective transaction entries are done in the bank’s passbook. Similarly, securities are held in electronic form and are debited or credited accordingly from a Demat Account. A Demat account can be opened with zero balance of shares.

Benefits of Demat Account

Easy Accessible Trades

A convenient way to hold securities where you can easily access (buy/sell) information anytime, anywhere through net banking via computer, smartphone or any other smart device. The USP here stands that a single Demat account can hold both equity and debt investments.

Less Paperwork

A Demat account is much secure and safer than paper- shares and also reduces paperwork for the transfer of securities. Also, the risks associated with physical documents such as delays, theft or face securities can all be avoided.

Easy and Instant Transactions

Demat accounts reduce the time-consuming process of receiving dividends, interests or funds, something which is all auto-credited into the account. Be it stock splits, bonus issues or public issues, it’s all very convenient to update the investor’s account.

Safe and Secure

Transfer of securities is done by DP (Depository Participant), eliminating the need to notify companies. Facilitates automatic credit into De-mat account for shares arising out of bonus/split, consolidation/merger, etc. A specific type or quantity of share can be frozen by the account holder which can stop the inflow or outflow of the money for a specific period of time as per the holder’s requirement.

Features of Demat Account

Online Trading is convenient

You can easily trade through multiple platforms: Web, mobile and Call & Trade service.

Investors can track their investments anytime

Trades are easily accessible; investors can buy and sell securities at any time and anywhere

Investors are able to review all of their options instead of depending on a broker

All the facts and methods to follow a task are stated online and in some simple and user-friendly ways.

Faster and Secure Transactions

A point where physical transfers would take one month or so which has become simplified with a cost-effective method as there are no more stamp duties on transfer of securities.

Hassle-free trading experience

You can easily trade through multiple platforms: Web, mobile and Call & Trade service that lets you have hassle-free and convenient handling.

How to Open an Online Demat Account with Religare Broking

Fill up your personal details via our secured online account opening platform.

Fill up your DOB, PAN, personal and bank details, upload your documents.

E-sign your application via Aadhaar OTP. You are done!