Best demat account in india and demat account in usa

What is the process of opening demat account?

demat account 

What is demat account ? Or what is meant by demat account?

Demat account is an a type of account that holds you debit and credit electronically, that are maintained by depositors.  For eg  in America there are 2 depository ADR( American depository receipts) and ADS (American depository shares). Where as in india there is NSDL(National securities depository limited & CDSL(Central depository service ltd)

Now the question comes what is open de-mat account with depository?

Depository is an organization that holds securities for eg : Debentures , Mutual funds , Shares , Bonds and many others. At present in India there are two depositories : NDSL ( National securities depository Ltd) and CDSL (Central depository services Ltd) but there is no direct contact between depository and investor. Depository interacts with investors through depository participants only. 

Depository participants need to maintain securities account balance of investor and intimate investor about the current status of their holdings time to time.Most brokerages and financial institution offer the services.

How to open a demat account?

Step one

Is to select the depository participant that you  wants to open your de-mat account with .

  De-mat or a dematerialization account refers to an account that an Indian citizen necessary need to open with the depository participant can be bank or stock brokers to trade in listed securities in electronic format . Securities are held by electronic way of depository.

Next step

Is to fill the form to open account and make the attachments of the copies that are asked in form for submission.

What documents are required to open de-mat account ? List of documents required to open demat account.

Here is the list of documents that can be used as proof
a)one need to submit id proof and address proof along with a passport size photograph  with form of opening account.
b) id proof are: PAN card ,Voter ID , Passport , Driving license , Bank  attestation , IT return , Electricity bill , Telephone bill , Id card , bank
passbook or bank statement , ICWA , Bar council etc.

What are Facilities that demat account provides?What are the benifits of opening demat account?

1. Easy, fast and low cost transfer  of securities : Demat account reduces the paper work, save time, requires less efforts and low cost in transferring securities . Shares are just transferred in 2 days time period.
2. Dematerialization : De-mat account allows share holders to convert their physical paper certificate  into electronic form .
3.Holding securities in secure electronic form ( i.e. Demat form) : The shares are held securely in electronic form by depositories . Thus there is no risk of damage in share certificates.
4.Single Consolidated account for all debt and equity holdings : Demat account allows to hold all investments in shares , bonds , mutual funds , debentures , etc . under a single account . As they just need to interact with a single organization and therefor the depository track and manage their investment .
5. Re-materialization: Demat account enables share holders to convert their shares in electronic form back into physical paper certificate form .
6.Fast implementation of corporate actions : Demat account distributes corporate actions faster and more convenient for both  the issuing company as well as for the shareholders.
7.Nomination : If a sole holder or the joint holders of demat account are effected (deceased/dead) then the shares which are held under that demat account will be given to nominated person .
8.Transmission : Transmission is a lawful process by which the ownership of securities is transferred to legal heir's  of the effected person. In such condition the heir's doesn't have to contact many companies and organizations separately. they can just contact with single entity .
9.Pledging : Shares of debt securities held in demat account can be mortgaged to take loans.so this were the  main thing a Demat account consist.

Is it necessary to have both trading account & demat account?

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R P Vani

The Villain : Smokes and the mirrors ( A Dark billionaire friends -to -enmies -to -loves highschool romance Novel 2021) The Elite Book 1. 

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