Demat Account: A Beginner’s Guide
Demat account is the first essential step towards becoming an investor/trader. As per SEBI rules, a demat account is a mandatory requirement for anyone wishing to trade in the stock market. But what is demat account? Read on to know more about.

What is demat account?
A demat, or ‘dematerialized’ account is used to hold shares and other securities in electronic formats. It is essentially a virtual briefcase to hold your important financial assets. With a demat account in place, you don’t need to have physical possessions of stock certificates, you can just convert physical shares into electronic formats which can then be traded with ease. A demat account holds stock certificates along with other instruments like shares, bonds, currencies, government securities etc.
What are the benefits of demat account?
· No hassle of paperwork as transactions are done online
· Protects from theft, forgery or loss of certificates
· Odd number of shares can be sold too — there’s no minimum or maximum limit of shares to be sold
· No stamp duties are charged or collected due to shares begin electronic
· Easy transfer of shares to company or registrar and further in no time at all.
How to open a demat account?
There are 4 simple steps to be followed to open a demat account online:
Step 1: Select a Depository Participant — a bank, stockbroker or online investment platform — with whom you would like to open your account. You can visit their website online and sign up for a demat account.
Step 2: You will be provided with a demat account opening form. The DP will also ask you to upload your KYC documents like Aadhar Card, PAN Card, and contact credentials. The KYC form also has the Depository Participant-Investor agreement, which includes the terms of agreement, rules and regulations, and charges you will incur whilst holding a Demat account.
Step 3: After a mobile verification, the next step is an In-Person verification to ensure the authenticity of your details. A DP representative would either come to verify your documents, or the interview can be conducted through a video session.
Step 4: The last step involves receiving a Beneficiary Owner Identity (BOID). This demat account number is your unique identity number which will help you sign in to your demat account. Once you have your BOID, the trading world is yours to conquer.