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To begin trading in equities, you need to have a:
What is a Demat Account?
A dematerialised (demat for short) account allows you to hold your financial instruments in an electronic form. . It makes the process of holding investments like shares, bonds, government securities, Mutual Funds Investments, Insurance and ETFs easier, that reduces the hassles of physically handling and maintaining shares and related documents. To invest in the stock market, as an investor, you need a demat account. All buying and selling of shares happens through a Demat account.
Difference between demat and trading account
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DEMAT ACCOUNT |
TRADING ACCOUNT |
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As an investor, you need a demat account to deposit and hold your stocks when you purchase them. Think of your demat account as a savings bank account for your shares. You can deposit and remove stocks from your demat account whenever you like; just as you deposit and withdraw money from your bank account as per your convenience. |
In comparison, you need a trading account to place ‘buy’ and ‘sell’ orders in the market. It is a requisite to conduct any transactions in the stock market. You can register with any online stockbroking firm to create an online trading account. When you register, you are provided with a unique ID that allows you to trade in the market. |
How to open a demat account?
Here are the steps for opening a demat account with reliancesmartmoney.com:
- Choose an intermediary
- Documents required to open a demat account<
- Demat account Charges
- Contract
- Demat account number
You may choose a bank, a brokerage, or any other financial institution as your intermediary. An intermediary works as a middle-man between the stock exchange and the investor. You can start your online account opening procedure by filling up an account opening form with reliancesmartmoney.com.
Along with your account application form, you need to enclose documents for identity and address proof.
List of mandatory documents to open a KYC account online with reliancesmartmoney.com are:
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Particulars |
Charges (Rs.) |
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Annual Maintenance Charges (AMC) levied on monthly basis |
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Individual / HUFs/ Trust |
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Accounts activated prior to September 01, 2015 |
300/- p.a. |
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Accounts activated on or after September 01, 2015 |
400/- p.a. |
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NRI / Foreign Nationals |
Nil |
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Corporate / Non-Individuals |
1000/- p.a. |
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Lifetime Free AMC |
2500/- |
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Basic Services Demat Account (BSDA) |
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Holding value at any date up to Rs. 50,000/- |
Nil |
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Holding value at any date between Rs. 50,001/- to Rs. 200,000/- |
100/- p.a. |
Lifetime free DP AMC: Pay refundable deposit amount of Rs 2,500/- to avail existing AMC debit balance waiver in demat account along with no monthly DP AMC charges for lifetime.
Next, you should sign an agreement with your intermediary that includes details on the rights and duties of the investor and the intermediary. You will receive a copy of this agreement and details of charges, for future reference. It is wise to check the document carefully before signing it.
After completing all the steps above, your bank/ brokerage firm (intermediary) will open your demat account. They will then provide you with your demat account number, also known as beneficial owner identification number (BO ID). This will complete your account opening procedure.
After opening your demat account, you may start trading in equities. Investing in equities can provide good long-term returns on your investments. Additionally, you can be more well-versed and #makeasmartmove with the investment choices by using the research provided on reliancesmartmoney.com.
Our team provides recommended stocks and comparisons between returns for all investors, available online - at one click.
When placing an order for trade, you need to select a product code to identify the category of the order. There are multiple product codes, namely:
