Upstox

What is a Demat account?

A Demat account is a digital account that holds your investments like stocks, bonds, and mutual funds in an electronic form. Just like you need a bank account to store your money securely, you need a Demat account to safely store securities such as stocks, mutual funds, ETFs, government securities, etc.

A Demat account, like a bank account, credits and debits your securities as you buy/sell them on exchanges, eliminating the need for holding physical share certificates and agreements.

Earlier, investors had to store physical share certificates and bond agreements, without which they couldn't prove the ownership of their investments. To buy one share or bond, you would have to fill out lengthy paperwork and invest a lot of time. To combat this, in 1996, the Depositories Act outlined the legal framework for National Securities Depository Limited (NSDL), allowing investors to hold their investments electronically. Later in the 2000s, SEBI mandated Demat accounts for IPOs and trading to ensure smooth and quick transactions of securities.

How to Open a Demat Account with Upstox

Demat Account Opening with Upstox is quick and easy.

• Step 1: Download the Upstox App or visit the Upstox website. Enter your mobile number, verify it via OTP, and provide basic personal information.
• Step 2: Complete your paperless e-KYC process and provide your income proof only if you want to activate the derivatives segment in your trading account to trade F&O.
• Step 3: Verify your identity by taking a live photo.
• Step 4: Enter and verify your bank account details.
• Step 5: Add a ‘Nominee’ to your Demat account. SEBI mandates adding a nominee to your demat account or completely opt out of the facility.
• Step 6: Read and accept the terms and conditions of opening a demat account with Upstox by e-signing.
• Step 7: Once all the required details are provided, Upstox will verify and activate your demat account.

Documents Required to Open Demat Account

The documents required on Upstox are PAN and Aadhaar.

• If you already have a Demat account with another broker, you do not need to re-upload these documents. They will be fetched automatically from the Central KYC Registry.
• If you do not have a Demat account with another broker, these documents will be fetched from DigiLocker. For this, your Aadhaar needs to be linked with your mobile number.
• Want your Demat account for futures, options, currencies and commodities? Keep these handy: salary slips, bank statements or ITR, etc.

Advantages of Opening a Demat Account

A Demat account offers multiple benefits to investors and traders, beyond securely storing their shares. Here are the key advantages of opening a Demat account with Upstox:

• ConvenienceA Demat account allows you to buy and sell shares online without handling physical documents or signing cheques. You can buy, sell, and access your holdings anytime and anywhere. With Upstox, investors can open zero-balance Demat accounts with zero account-opening charges.
• Enhanced Investing ExperienceAll equity cash segment trades follow a T+1 settlement cycle as per exchange regulations. For example, if you buy 100 shares today, the shares will be credited to your account by the next business day. This frees up capital faster, allowing traders and investors to execute their strategies more efficiently.
• Low Risk of TheftSince a Demat account stores your shares electronically, there is minimal risk of forgery or loss associated with physical certificates. In a Demat account, all your investments are protected by SEBI-registered depositories like NSDL and Central Depository Services (India) Limited (CDSL). Even if you misplace your device, your investments remain secure within the depository system and can be accessed by signing in to your broker's platform using your Client ID and OTP.
• Compliance with SEBI GuidelinesSEBI has discontinued physical transfer of shares (except transmission/transposition case), as physical trading was difficult to track and increased the chances of fraud.
• Loans Against SecuritiesYou can pledge the securities held in your Demat account with banks or NBFCs to secure a loan against your investments. This can benefit investors facing a financial crisis by allowing them to avail of loans without selling their investments.
• Automatic Receipt of Dividends & Stock SplitsAll stock splits and bonus issues are automatically credited to your Demat account. Besides, dividends on stocks are credited to your Demat-linked bank account. For example, if a company declares a 1-for-2 stock split, the shares in your Demat account will be automatically split, requiring no intervention.

Open a account link 

   https://upstox.com/open-demat-account/?f=5BCYP5