In the fast-paced modern world of finance, demat accounts have been one of the strongest tools to have around. By streamlining and digitising the process, these accounts revolutionise the conventional approach to security. In terms of functionality, these demat accounts are quite similar to bank accounts. It logs and collects all the activities of an individual operating in the stock market and holds the records of financial instruments in a format which is electronic. People willing to trade in mutual funds, shares, ETFs, and bonds will benefit greatly from the demat accounts.
Documents You Need To Open A Demat Account
You certainly need to complete the KYC procedures, and as per the protocols, to open a demat account, there are certain documents you would need:
- Bank account proof with a cancelled check
- Passport-size photographs.
- Income proof in the form of an income tax return is vital for those who wish to trade in derivatives like Futures and Options.
- PAN card.
- Voted ID, driving licence, or any other identity card.
- Voter ID, ration card, and password as address proof.
Among many other documents mentioned here, a PAN card is one of the essential ones when you are trying to open a Demat account. Recently, a regulation was implemented that makes it the most necessary document to open a Demat account.
In addition to providing the original PAN card, the individual should submit a self-attested copy of the PAN card along with many other documents.
In the scenario of multiple holders of a demat account, all of the holders need to provide their PAN card as it is an essential document for a demat account. There can be multiple demat accounts that can work on an individual’s single PAN card.
How Do You Log In To Your DEMAT Account?
Accessing and logging into your demat account is the first crucial step before investing. To begin with your trading journey, the first thing you need to do is head over to the broker’s trading platform. To get the most out of your free DEMAT account, locate the login option from the top-right of your page. From there, you will be redirected to a secure login page where you will be required to log in using your username and password credentials. Make sure your credentials are always confidential to avoid any sort of unwanted attention.
- You may be asked to finish the two-factor authentication process upon a successful login. It is an additional layer of security to safeguard your demat account from invaders. It might involve a one-time password that you need to provide.
- Complete the two-factor authentication swiftly, and you will successfully be inside your trading account, where you will learn a lot about the Demat accounts and how you can get started with trading.
- You can do many things from your demat account, like checking your portfolio, managing your account settings, exploring different stocks, and executing trades. It is strongly advised that you have a clear understanding of how important your credential is.
Not only is it vital to remember these credentials, but it is also important that you ensure nobody gets access to them, as the last thing you would want is for your demat account to be compromised.
Can You Open A Demat Account Without Pan?
PAN is the most important document for any and every Indian resident. PAN number makes sure all of your transactions are in one place. For most financial matters, you will require your PAN card. While opening a free demat account, it is the same PAN used to be one of the most important documents to open an account, and after the new law, it is the most important document.
Regardless of the amount, the IT department identifies PAN as the sole identification for all the transactions of the market. The law enables a person to possess any single PAN card. Even though you move to another city or country, the PAN number that has been generated for you once does not change at all.
Therefore, to address the question of whether you can open a demat account without PAN, the easy answer is no, as you are required to submit the self-attested document on your venture to open a demat account. However, in circumstances where the PAN card is not accessible to an individual, you can access a beneficiary account. You should know that there are certain regions that can be excluded from providing this absolutely necessary document when they are trying to open a demat account. If you do not fall in such a region, then a PAN document is a must!
How Do You Start Trading With A Demat Account?
Trading using a demat account can be accomplished by using a few steps and after ensuring that the transactions are executed securely and efficiently:
- The first thing you need to do is do your own research and find out which stocks to invest in. You can leverage various analytical tools and platforms to understand which stocks are profitable. It is essential that you have the best stock market app by your side.
- Once you are set on which stocks you will be investing in, consider logging in to your account and filling out the necessary details to get started with the investment.
- Upon confirmation, the further processes are implemented. After that, the stocks will be bought or sold, depending on your actions.
- After the execution of the three processes, if you have bought stocks, they will be credited to your account, and if you have sold those, they will be debited from your account.
- It is highly advised that you check your demat account on a regular basis for better insights.
Wrapping up
The easy part is opening a free DEMAT account and getting started with it. Understanding the patterns of trading and which stocks are subjected to be the next popular ones is the challenging part. While you can seek help externally for better investment from your side, it is also beneficial to do your own research.
Check the best stock market app from Motilal Oswal to create your DEMAT account in a hassle-free way.Â
