What is a Demat Account & How to get one in India..!!

Jan. 5, 2009 - PRLog -- What is a Demat Account?

Demat is shortened from Dematerialized account. Just as if you need a bank account for savings or making transactions, you would need a Demat account when you are buying and/or selling stocks and shares. A Demat account holds the lists of your stocks and shares electronically.

Obtaining and working an Account

With any registered depository participant (DP), a Demat account can be opened. You can see the NSDL and CDSL websites if you need a list of registered DPs. After you have picked your DP, complete the following steps:

   * Fill out the form for opening an account.

   * An agreement with the DP needs to be signed

   * You need to submit proof of your identity and address,

When the account is up and running, the DP will provide you with a Beneficial Owner Identification (BO ID) that you will use when making transactions. When you sell shares, give the DP all delivery information, then your Demat account will be debited and payment for the transaction will be made via a broker or bank. You will need the BO ID while buying shares and placing orders for the shares. The DP will then credit your account with the shares.

Statements of your stock holdings and transactions will be given by the DP. The charges for opening and having the account depend on the DP that you choose. An idea of comparative rates can be seen at the NSDL and CDSL websites.

The Indian stock market is moving upward day by day, with short/long term investments having extraordinary growth opportunities. You can truly benefit from the current stock market upsurges and build a good portfolio with a Demat account.

NRIs / PIOs and Demat accounts: Non-Resident Indians who have invested in Indian companies or would like to, need to open a Demat Account. There are many reputed brokers in India that assist NRIs & PIOs like: Geojit.com, http://www.NriInvestIndia.com, HDFC.com & ICICI.com  is a global leader in providing services needed to invest for NRIs. You can look at your Demat Account details and print a statement of the transactions and holdings from everywhere in the world.

Source: http://www.nridemat.com/

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About NriInvestIndia.com:
Nriinvestindia.com is the parent site and a proud brand of ‘Ni2 Financial Consultancy Pvt Ltd – an Indian firm that helps non-residents invest in the Indian Share Market.

We, at nriinvestindia, help our clients invest in Mutual Funds and Share Market in India. In doing so we offer an enormous variety of services to our clients such as Online Stock Trading Account, Demat Account, Derivative Trading, Commodities Platform and PAN Card Assistance, NRI Taxation services.