Ruchi Verma Demat account is something which you need to have if you want to invest in shares and stock market. If you are planning to invest in equity shares, trust me physical form is difficult and involves lengthy and so much paperwork.
To ease up transactions, settlements and eliminate the risk of holding physical share certificates they introduced this account. Converting and storing physical shares certificates and other securities in an electronic format known as Dematerialization.
Your shares, bonds, Mutual funds, Insurance, ETFs, and government securities are easy to maintain and handle with your this account.
Why it’s required?
- To transfer shares of the investors.
- Gives access to multiple operations like investing, monitoring, trading, and many other financial operations using the internet facility.
- You can apply and get loans against these securities as collateral to secure a loan from your bank
- Easy to receive the physical share certificates converted into electronic form and even get the electronic securities converted back to the physical form as per your requirements.
Types of Demat Account
There are 3 types of account you can have :
- Demat Regular Account: This is for Indian citizens who live in the country.
- Demat Repatriable Account: This kind of Account is for non-resident Indians (NRIs), which enables money to be transferred abroad. However, this type of Account needs to be linked to a NRE bank account.
- Demat Non-Repatriable Account: This again is for the NRIs, but with this type of Account, fund transfer abroad is not possible. Also, it has to be linked to an NRO bank account.
You can open a Demat Account having no shareholdings. There’s no mandate to maintain a minimum balance. You can open it with any of the central depositories, and it have annual fee attached which need to get checked with your bank.
Also read: Financial lessons for teenagers
‘This post is part of Blogchatter’s Blogchatter Half Marathon.’
© Ruchie Verma.
Disclaimer: This post is written as informational part, please read all guideline carefully before investing in financial transactions.
Copyright Unauthorized use and/or duplication of this material without express and written permission from this site’s author and/or owner is strictly prohibited.
Honestly dear I did not have any idea about demat account. learnt a lot about it with your post, I like the fact that with this account, you do not need to maintain a minimum balance.
A very enlightening post, Ruchi. You have simplified all the complicated terms bankers use. Your post helped me understand Demat related information better.
Many are often not aware of this but would like to open an account, your post can really help them, buddy. good one!
This is very insightful post. People who are interested in stock and shares must know this. I have one but solely managed by my hubby.. Haha.. But today your past have taught me something.
I seriously had no much idea about demat account thank you for sharing the detailed information definitely will be checking out.
I have studied finance and know about Demat accounts and how useful they can be for share trading and more. This post surely will help more women who aren’t so sound in finances.
I’m actually in a phase where I just opened my demat account without knowing anything about it. Your post is definitely helping me take. step forward.
You’ve broken it down well for beginners. For trading in shares, demat account is a must. Glad you informed about annual fees too.
Very informative post regarding the Demat account. Having a Demat repatriable account now made things very easy in exchanging and transferring the bucks in minutes.
Since the DEMAT accounts have become operational, the physical form of shareholding has become almost nill, as this is one stop solution for all your needs. This is an informative post for all those who are new to share markets
This is a much needed information on demat accounts and its necessities. I was absolutely not aware of so much, other than the basics. Got yo know a lot.
A very informative post for all those who don’t know the benefits of having a demat account. Thanks for sharing about it in a simple and easy way
A Demat account has brought the world of stocks and shares right into our homes. It is so easy and convenient to transact through a Demat Account. This is a very informative post for those looking to understand the basics of a Demat Account.
That’s very helpful information about demat account clearing many of my doubts about it. Never know that it’s not necessary to have any minimum balance
I do have a Demat account and regularly trade from it. Its a good form of investing and saving as well for future goals. I loved how you have made it simple for everyone to understand the basics of Demat account.
Thanks for sharing the details, I was planning to invest in the shares off late and was confused between the demat account types. Now , I know which one to open. I am gonna start with Demat Regular account