How To Open A Demat Account & What are Demat Account Charges?



With the introduction of the Depository Act, 1996, the Securities and Exchange Board of India has made it mandatory to execute trading in the stock market through digital mode only. The Depository Act has introduced a dematerialized system for trading in stocks, bonds, government securities, and other types of securities. Prior to dematerialized trading, stock exchanges offered investment opportunities with physical and paper from securities. 

Technological advancement has made it easy for investors to participate in the stock market without any hassle. Multiple parties play an important role in trade statements that usually operate on the ‘T+2’ days system. These participants include issuing companies, stock exchanges, brokers/depository participants,  depositories, and investors. 

Under the digital investment system, you need a platform that will hold your financial securities along with digital trading. The Dematerialization Act has provided the concept of Demat account. Demat accounts act as a digital security platform that holds your financial securities with depositories. Many brokerage houses/brokers offer trading services with low demat charges. To open your demat and trading account, brokers have their digital platforms and mobile applications. These applications allow you to activate your account within 24 to 48 hours. Any financial security traded on the stock exchange can be bought and sold using the Demat account. Along with traded securities, you can invest your funds in unlisted stocks as well.

Before getting information regarding demat account opening, you should go through the concept of demat account.

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