Frequently Asked Questions on Demat Account
You can open a DEMAT Account online. It is a simple and straightforward process. All you need to do is fill out the KYC form and submit scanned copies of all the required documents. Next, your details and documents will be verified. If everything is in order, your account will be approved, and you will receive a Beneficiary Owner Identity (BOID).
Having a DEMAT account allows easy transfer of shares—whether you are buying, selling or gifting them. Receiving dividends, bonus shares or rights entitlement (RE) shares are also easier as companies directly deposit them to your Account—reducing paperwork. A DEMAT Account also makes it easier for you to avail loans against securities you hold. Depositories, who handle DEMAT accounts, also allow you to freeze your account, which may come in handy when you want to stop any unwanted transactions.
You can open DEMAT account online on the m.Stock portal. You can also open a trading account online. Simply fill our online form and provide your contact details, and we will take it from there.
The process to open a DEMAT Account is relatively simple! All you need to do is fill a simple KYC form, submit a handful of documents and complete a short verification process. Finish these 3 simple steps, and the procedure to open DEMAT Account will be complete. Then, if all your details and documents are submitted correctly, you will receive your login credentials within just 12 to 24 hours.
There are several features and benefits of a DEMAT Account. Firstly, it allows easy holding and tracking of all your investments. It also lowers the risk of loss, damage or theft otherwise associated with physical certificates. A DEMAT account also allows for the buying and selling of odd lots—for example fractional shares—which is not possible with physical certificates. Apart from listed stocks, your DEMAT account can also hold shares of unlisted companies, bonds, units of mutual fund and Exchange Traded Funds (ETFs).
There are 3 different types of DEMAT Accounts: regular, repatriable and non-repatriable. Only Resident Indians can open a regular DEMAT Account. A repatriable DEMAT Account allows Non Resident Indians (NRI) investors to transfer funds overseas. This requires a Non Resident External (NRE) bank account, which is used to transfer foreign earnings to India, linked to it. A non-repatriable DEMAT Account can be used by NRIs who do not wish to transfer funds overseas. An Non Resident Ordinary (NRO) bank account, which is used to manage the income earned in India, is required to be linked with a non-repatriable DEMAT account.
The list of documents required to open a DEMAT Account is a basic one. You essentially need the following to open your DEMAT account:
Identity Proof: A copy of your PAN Card.
Address Proof: You may submit any one of the documents listed below.
- Voter's ID
- Driver's License
- Aadhaar Card
Income Proof: You must submit
- A copy of your passbook
- Bank account statements for the last 6 months
- Latest salary slips
- Filed Income tax returns
To open a DEMAT account, you need to fill out a Know your Customer (KYC) form. It's a simple form that requires basic information such as your name, address, contact and banking details, You may also have to provide a power of attorney to your broker to trade shares on your behalf; though, this is optional. Customers are also required to provide supporting documents such as proof of residence/identity along with a PAN card, and other documents such as proof of income if the investor wants to access segments such as futures and options.
DEMAT Account opening charges of INR 999 are chargeable when you open an account via m.Stock and start your online trading journey with lifetime zero brokerage charges, applicable on all your trades. You can open an account and begin trading with complete ease.
With Mirae Asset's state-of-the-art online account opening facilities, the time taken to open a DEMAT Account has significantly reduced. We offer instant onboarding facilities, and you can open your account in under 5 minutes**.
At Mirae Asset, when you open your account with us we levy DEMAT Account opening charges of INR 999 with lifetime zero brokerage charges on all your trades.
The process of how to operate a DEMAT Account is quite similar to operating a Savings Account. Only, instead of holding cash, the DEMAT Account holds your stocks, shares, bonds and other investment instruments. When you buy shares or stocks, they are credited and stored in your DEMAT Account and are debited when you sell them. A DEMAT Account also provides market updates and regular analysis of your investments.
Stock analysis basics can be broken into two broad categories: fundamental and technical.
Fundamental analysis refers to the study of the company's annual report, financial ratios, quarterly performance, assets, liabilities, and so on. Analysts and investors look into the financial performance of a company to estimate how it may perform in the future and whether the company is being fairly valued by investors currently. Usually, financial analysis is used to make case for long term investments as any mispricing between a company's market value and its intrinsic value may take time to be fully understood and for the stock price to adjust
On the other hand, technical analysis involves examining prices and volumes to determine future performance. Technical analysis assumes that all information in the market is factored into the price. It also assumes that the stock prices follow an established trend and patterns seen in the past. It is generally used by short term traders.