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A Demat account is primarily used to electronically hold securities and shares. The concept was first introduced in the country in the year 1996 as an alternative to physical share certificates. A Demat account not only makes share trading quick and easy, but also eliminates all of the risks and problems associated with physical share certificates. You can use a Demat account to store a wide variety of investments such as equity shares, ETFs, bonds, debt securities, mutual funds, and government securities among others. In India, possession of a Demat account is mandatory if you wish to invest in the stock market.

A Demat account is also known as Dematerialized account. In other words, converting or dematerializing your physical shares in the electronic format is known as holding a Demat Account. Demat account is used to hold the shares and securities of publicly traded companies in an electronic form. With a Demat account, you can hold a wide variety of investments such as bonds, equity shares, government securities, mutual funds, and exchange traded funds. Similar to a bank account, a Demat account is either credited or debited each time you buy or sell shares of a company.

It not only eliminates unnecessary paperwork, but also helps streamline the process of share trading. All of the Demat accounts in India are maintained by two organizations, namely National Securities Depository Limited (NSDL) and Central Depository Services Limited (CDSL).

In the initial days of the stock market, shares were held in a physical form by way of share certificates. However, it made the entire process of share trading cumbersome and difficult to carry out at short notice. There were also issues of share certificates being fakes or forged. Certificates were also often lost or physically damaged.

In order to eliminate these limitations and problems associated with physical shares, the National Securities Depository Limited (NSDL) was established in the year 1996. NSDL brought in the concept of Demat accounts, which could be used to electronically store shares and securities of companies. If you own physical shares, you need to convert them to electronic records before being able to use a Demat account. This process of conversion is what is commonly known as dematerialization.

The process of dematerialization is simple and requires very little effort from your part. By following the steps below, you can easily convert your physical shares into electronic form.

• Firstly, you're required to open a Demat account with a depository participant (DP) like Chris Wealth Management. A depository participant is an entity that acts as an intermediary between you and the depository (either NSDL or CDSL).
• Once your Demat account is active, you need to send a duly filled Demat Request Form (DRF) along with your physical share certificates to your depository participant.
• Your depository participant will then process your request by sending your share certificates back to the company.
• In addition to this, your DP will also send a request to the company's appointed Registrar and Share Transfer Agent (RTA) via the depository.
• Upon approval of the request, the share certificates are destroyed by the company and a dematerialization confirmation is sent to the depository.
• The depository relays the dematerialization confirmation to your depository participant and subsequently credits your Demat account with the relevant number of shares.

A depository is an organization or an entity that helps store financial assets electronically, so traders and investors can buy, sell, or hold them. In India, there are two depositories that are responsible for maintaining all of the Demat accounts in the country. These are:

• National Securities Depository Limited (NSDL)
• Central Depository Services Limited (CDSL)

However, you can only deal with a depository through a depository participant (DP) such as India Infoline. A depository participant essentially acts as an intermediary between you and the depository. If you hold any physical shares, you will first need to convert them into electronic records before you can use a Demat account. This conversion process is commonly known as 'dematerialization'.

Buying of stocks in the share market can be done only through a trading account. Meanwhile, a Demat account is used to hold the shares bought through the trading account. Therefore, in order to realize the full potential of a Demat account, it is imperative to link it with a trading account. The following process will show you exactly how a Demat account works.

• When you place an order, say a 'buy' order, on your trading platform, a 'buy' request is forwarded by your depository participant to the stock exchange.
• The stock exchange then matches your 'buy' request with a similar 'sell' request and sends an order to the clearance houses.
• The clearance houses then settle the trade by debiting the specific number of shares from the seller's Demat account and crediting it to your account at the close of the share market.

Features of Demat Account:

By opening a Demat account, you enjoy access to a number of useful features. Here are some of the most important ones.

• Share transfer: Transferring your shares is extremely easy with a Demat account. You only need to send in a duly signed Delivery Instruction Slip (DIS) to your depository participant to transfer your shares.
• Loan collateral: You can pledge the securities you hold in a Demat account and use them as collateral for securing a loan from a financial institution.
• Temporary freeze: You can temporarily freeze your Demat account for a specific duration. However, this feature is generally only made available if you hold a specific number of shares in your account.
• Quick transfer of benefits: Best Demat accounts offer a swift transfer of benefits such as dividends, bonus issue of shares, stock splits, interest, and refunds.
• Speed e-facility: NSDL allows you to send instruction slips to your depository participant electronically. This not only makes the entire process faster, but also makes it less cumbersome.

Benefits of a Demat Account

In addition to being an indispensable part of the share market, best Demat accounts come with several benefits such as

• Swift settlements and deliveries
• Increases share trading volume and market participation
• Increases transparency
• Eliminates paperwork
• Quick and easy communication with investors
• Little to no risks involved
• Builds trust and increases investor confidence

In India, there are primarily three types of Demat accounts offered by depository participants. Depending on your residential status, you can choose the right kind of account for your share trading and investment purposes.

The different types of Demat accounts are further explained below:

Regular Demat accounts:

These are dematerialized accounts for residents of India. If you're an India resident primarily dealing with equity trading and investment, you'll find the regular Demat account ideal.

Repatriable Demat accounts:

This is one of the two types of Demat accounts available for non-resident Indians. As its name signifies, a repatriable account allows you to transfer your funds abroad if you're an NRI. You need to link this account with a Non-resident External (NRE) bank account to enjoy repatriation of your funds

Non-repatriable Demat accounts:

If you're a non-resident Indian, you can also choose to open a non-repatriable account. This type of account does not allow you to transfer funds abroad. It needs to be linked to a Non-resident Ordinary (NRO) bank account.

Check whether the account maintenance charges are economical

Maintenance of Demat accounts involves annual charges irrespective of whether you make transactions or not. Other charges are applicable too. You must, therefore, check out the range of charges involved with the Demat account and choose the most economical account.

Enquire about the account opening process

The Demat account opening process offered by your DP should be hassle-free and quick. Opening a Demat account involves a detailed process as per SEBI guidelines. The depository participant can, nevertheless, simplify it with the help of e-KYC.

Look for a seamless interface for broking and banking

Depository participants also offer Demat accounts that serve as trading accounts too, thus providing seamless transfer of money during sale or purchase of shares and securities. An interface between the two accounts not only simplifies transactions but also makes them economical.

Check if the DP offers customised analytics for Demat account holdings

Online analytics customised as per your choice of shares and security along with their investment habits allows you to increase earnings. You must look for value additions like these when choosing the best Demat account.

Additionally, features like a shorter turnaround time (TAT) for share dematerialisation allow you to assess the DP's commitment towards serving investors.

Irrespective of whether you're a beginner or a seasoned investor, it's vital that you choose the right platform to trade and invest in the stock market. When you choose India Infoline as your depository participant, you stand to enjoy a plethora of advantages.

• Chris Wealth Management financial products and services have enriched the lives of over 4 million customers.
• India Infoline is a leading broker in the financial services industry.
• At the heart of Chris Wealth Management is an award-winning research team.
• The solutions offered by Chris Wealth Management are backed by world-class technological platforms.
• A dedicated support team ensures that Chris Wealth Management customers receive top-class assistance.
• Through a single Demat account opened with Chris Wealth Management, you can invest in various options such as IPOs, derivatives, equities, commodities, and more..
• India Infoline also offers you daily and weekly reports customized exclusively for you.
• The Chris Wealth Management Stock Trading app is a user-friendly tool that allows you to trade from anywhere, anytime.

If you're a first-time investor or trader, you may chance upon some unfamiliar terms and phrases related to Demat accounts. Here's a Demat account glossary that can help make the fundamentals clearer.

Bull market:

In a bull market, the prices of assets show an upward trend. The financial markets are typically bullish in an economy that shows signs of growth and development. It's generally a good move to purchase shares in a bullish market.

Bear market:

A bearish market shows signs of decline. The prices of assets display downward trends consistently. When the market is bearish, you may find that you're inclined to sell off your assets.

Dividend:

Many listed companies pay a part of their profits to shareholders. This is known as dividend. By investing in the right companies, you could earn dividends that act as a supplementary source of income.

EPS:

Earnings Per Share (EPS) is a financial ratio that you obtain by dividing a company's profit by the number of shares it has. Analysing parameters like the EPS can help you understand a company's financial health, so you can make better investment decisions.

Depository:

A depository is an entity that holds your financial assets in a dematerialized form. You can buy or sell securities with the help of a depository. Furthermore, depositories also keep a record of all your trades.

Depository participant (DP):

A depository participant is the link between the depository and the companies that issue stocks and other instruments. DPs can be banks, financial institutions, or brokerage houses. Chris Wealth Management is a depository participant.

Day trading:

Day trading is essentially a practice wherein you buy and sell securities on the same day using your Demat account. It helps generate short-term income if your trades are successful.

Blue chip stocks:

These are equities of companies that have a proven track record of performing financially well. By investing in blue chip stocks for the long term, you can enjoy good returns in the form of dividends as well as profits.

Opening a Demat account is a fairly straightforward process. Here's a step-by-step guide.

• Fill the Demat account opening form.
• Submit the form along with the documents required.
• Your depository participant may require an in-person verification, wherein a representative of your DP may call you to verify the details you've submitted in the documents.
• Once the verification process is complete, the DP activates your Demat account.

To open a Demat account with a DP, you'll need the following documents.

• A proof of identity, such as your PAN card, Aadhar card, voter's ID, or driving license
• A proof of address, such as your passport, utility bills, or bank passbook
• A proof of income, such as your income tax return or salary slips
• A passport-sized photograph

On average, it takes around 7 to 14 days to have your Demat account opened and active.

Some DPs may require you pay account opening charges, while others may not. India Infoline does not charge any fees for opening a Demat account.

These are essentially annual charges levied by a depository participant for maintaining your Demat account. When you open a Demat account with India Infoline, you enjoy zero AMC for the first year.

A Demat account is created for the purpose of holding your financial assets in a dematerialized form, while a trading account helps you buy and sell shares and other commodities. You can link your Demat account and your trading account, so share trading becomes easier for you.

You're eligible to hold multiple Demat accounts. The caveat is that you cannot open more than one Demat account with the same depository participant.

The following persons are eligible to open a Demat account in India.

• Resident individuals
• Non-resident individuals
• Hindu Undivided Families (HUFs)
• Partnership firms
• Companies

Yes, you can open a Demat account in the name of a minor child. However, this account needs to be operated by a parent or a guardian till the minor child comes of age.

India has two depositories that are registered with SEBI, namely:

• National Securities Depository Limited (NSDL)
• Central Depository Services (India) Limited (CDSL)

Indian capital markets have evolved significantly over the last two decades. The scope and size of the operations have witnessed unprecedented growth over the period. The equity market capitalization of BSE grew from a mere Rs 6.1 lakh crore in 2001-02 to Rs 159 lakh crore in 2019-20. The growth has coincided with a host of technological changes undertaken by the stock exchanges. The most notable technological intervention was the introduction of electronic trading in India. In 1996, Indian stock exchanges shifted from physical trading of securities to electronic trading.

Though the shift was initiated by the Securities and Exchange Board of India, it was facilitated by vital institutions like depositories. Depositories are SEBI-approved institutions that are tasked with the secure storage of securities like shares, debentures and bonds. Depositories extend their storage services to investors through demat accounts. Depositories are like banks and demat accounts are just like bank accounts. The only difference is that demat accounts store securities instead of cash.

A demat account, along with a trading account and a bank account, is a prerequisite to access the stock markets. You can trade in certain types of derivatives without a demat account but will need one if you want to trade in the equity segment. A demat account is one end of the investing spectrum and the bank account the other. The trading account is the interface between the two. You store cash in a bank account and use it to buy securities through the trading account. The securities bought by you are stored in the demat account until you sell it.

Origin: The concept of the dematerialization of shares was firmly established in India by the Depositories Act 1996. The act led to the establishment of depositories in India, which is the fulcrum that supports electronic trading of shares in the country. Depositories are institutions that hold all the securities in the electronic form. Central Depository Services Limited (CDSL) and the National Securities Depository Limited (NSDL) are two depositories operating in India.

Rationale: The primary objective of the Depositories Act was to make transferability of securities free, fast, accurate and secure. The establishment of depositories and the introduction of demat accounts have made trading in securities convenient, cheap and hassle-free. But to avail the benefits of demat account, you will have to dematerialize physical securities, which simply means to convert physical certificates into an electronic form. Several changes in the norms by SEBI has made electronic trading of shares compulsory in India.

Medium: Depositories hold the securities in individual demat accounts, but how do you get access to a demat account? Depository participants provide access to a demat account. Depositories do not directly deal with the investors. Depositories have agents known as depository participants or DP who offer depository services to investors. According to SEBI norms, institutions such as banks and stockbrokers are eligible to act as DP. Investors like you will have to open a demat account through a DP to dematerialize and then trade in securities.

Process:

• To initiate dematerialization of securities, you will have to open a demat account through a depository participant. You will have to submit documents establishing your identity and address to the DP. After verifying the documents, the DP will open a demat account in your name.
• After opening a demat account, you will have to fill a dematerialization request form or DRF and submit it with the physical certificates to the DP. Separate DRFs have to be submitted for securities of different companies. The DP checks all the details in the form like the number of securities and types of securities and then forwards it to the company or registrar and transfer agent.
• If no discrepancies are found, the company or the registrar and transfer agent will forward the request to NSDL or CDSL. The choice of depository depends on which depository the DP is registered with. Generally, DPs are registered with either NSDL or CDSL, but some are registered with both. For instance, with an Chris Wealth Management Demat and Trading account you can avail demat services from both the depositories.
• On the completion of the process, the depository credits your demat account with an equal number of shares. The dematerialization process is completed in around 30 days.

There can be specific instances of the rejection of the dematerialization request.

• Transmission cum Demat: In case you jointly hold securities and one of the joint holders has died. To dematerialize the shares, you will have to submit the share certificate, the death certificate and the transmission cum demat form to the DP. However, the details of all the surviving holders should match the name on the securities.
• Transposition cum Demat: A transposition cum demat form has to be submitted to the DP if the names on the demat account do not match with the names on the physical certificates.

As the name suggests, re-materialization is the process by which securities held in the electronic form can be reconverted into physical form. To rematerialize, you will have to submit a Remat Request Form or RRF to your DP. On receiving the form, the DP blocks the securities to the extent of the request in the demat account. The form is then forwarded to the depository and the issuer or the registrar. After verification, the company/registrar prints out the physical certificate and sends it to the investor. One of the benefits of a demat account is that it provides ample flexibility to convert and reconvert physical securities. However, as per SEBI norms, you can hold physical certificates but cannot trade with them.

Though the demat account is a result of the dematerialization of shares, there are several aims and objectives of a demat account.

Safety

The biggest demat account aim and objective is to ensure the safety of clients' securities. Before demat accounts were introduced, shares were stored in the physical form, which was susceptible to theft. The electronic storage of securities with highly secure depositories has made theft a thing of the past. Similarly, the era of physical securities was marked with multiple instances of forgeries.

Before the advent of demat accounts, companies used to issue security certificates, which were relatively easy to forge. Demat accounts have eliminated forgeries due to a variety of checks inherent in the system. It is easier to track electronic transactions and movement of electronic shares, which also makes it easier to detect forgeries and frauds.

Along with protection from theft and forgeries, demat accounts also prevent you from losing or misplacing securities. Share certificates were just like other documents, if not kept properly, you could easily lose them. People used to lose or misplace their share certificates before electronic trading. The demat account has made everything electronic, which has put an end to the chances of losing your shares.

Convenience

Along with the safety of securities, investor convenience is another major aim and objective of the demat account. Earlier, if you had to transfer shares, you would have to send the shares to the company or registrar to get them transferred to your name. It was a tedious, costly and an extremely slow process considering the logistics speed in the country. The process took months to complete and shares would even get lost in transit resulting in a loss for the investor. In contrast, the demat account has made a quick transfer of securities a reality. Currently, stock exchanges take just T+2 days to settle the entire transaction.

Like other activities, the process of changing the address was cumbersome before the introduction of demat accounts. In the past, investors had to fill out an application for changing their address. People with investment in various companies had to inform all the companies separately about the change. One of the demat account aims and objectives is to improve access to the capital markets by improving convenience. Now, you just have to inform the depository participant and they automatically update the address in the records of the companies in your portfolio.

Cost Efficiency

The cost of a transaction automatically reduces if you improve the flow of the money. When shares were traded in the physical form, you had to complete a lot of paperwork and ensure the papers reached their destination on time. This would entail a lot of time cost and actual expenses. The logistics expenses were high and there was an additional cost of losing valuable time. Demat account had made the system efficient and has reduced paperwork and logistics-related costs substantially.

Another cost-benefit of demat accounts is that it made the stamp duty irrelevant. Trading in physical shares meant buying a share transfer stamp and sticking it to the bottom of the certificate. Sometimes, investors had to go to the stock exchange to get the share transfer stamp. Getting share transfer stamps was more difficult and costlier for investors from small towns. Demat account aims and objectives were to reduce the cost of trading and make it convenient for the investors and the elimination of stamp duty has helped in achieving the objective.

Flexibility

A market achieves maximum efficiency only when the smallest investor gets the same opportunity as the biggest. In the era of physical trading of shares, there were a plethora of terms and conditions attached to investing. One of the important conditions was that you could only trade in even lots of shares. It meant that, if you wanted to sell 51 shares of a company, you wouldn't get a buyer in the market. Since all the calculations and settlements were done manually, trading only in even lots eased the process. One of the biggest benefits of the demat account is that you can easily buy or sell any number of shares without any restrictions.

A demat account is a mandatory requirement for trading in securities in India. However, the demat account is just the front-end which is supported by a depository on the back-end. Depositories facilitate holding of electronic securities and ensure transactions are processed by the book building method. A depository supports the transfer of securities from various investors at the same time. On the front-end, a transaction in the capital markets requires the transfer of securities from the buyer to the seller. But at the back end, the transfer of securities from the holder to the depository takes place.

The depositories maintain demat account with unique numbers for every client to ensure the safety of the transaction. Even the securities held by the client are given unique ISIN numbers to ensure a smooth transfer without any errors. Besides shares, you can also hold mutual fund units, bonds, gold ETFs and other assets in your demat account. In simple words, a demat account is a virtual locker to store a wide variety of electronic assets.

Along with the dematerialisation of securities, there are a host of other benefits of demat account. The security guaranteed by demat accounts has opened several avenues for investors. The holdings in your demat account can help you get access to a variety of financing options from banks. When you avail a loan, the bank has to ensure the security and authenticity of the collateral. With multiple instances of securities frauds, banks used to be wary of taking certificates as collateral. Due to the security and authenticity of ownership offered by demat account, it is easier to use securities as collateral. Demat accounts have also simplified the process of receiving benefits of corporate actions. If a company announces dividend, interest or refunds, the amount automatically shows in the demat account. Similarly, in case of stock split or bonus issue, the status is automatically updated in the demat account.

Demat account has made it convenient for anyone with a decent internet connection to access the capital markets while sitting at their homes.

Using a Demat account, one doesn't face limitations like buying or selling shares in fixed tranches or lots. Thus, it does not just become easy to buy or sell shares in odd lots even you could even do transactions for a single share too. Gone are the days of buying shares in tranches of 50 or 100.

A Demat account could be easily accessed via multiple access points in real-time, viz. your smartphone, tablet, or desktop. You must choose an Chris Wealth Management trading account if you are planning to invest in equity, currency, or commodity market. The Chris Wealth Management demat and trading account not just offers dedicated support staff, personalized portfolio analysis, but also in-depth research analysis that will help you in building your investment portfolio.

Demat accounts have enabled simultaneous access through multiple mediums, simplifying the investing journey for many investors. One of the benefits of demat account is that you can trade through a smartphone, tablet or a computer seamlessly without any hassles. Even though the demat account is necessary, it is just a part of a larger mechanism. You should have a trading account and a bank account as well. Bank accounts do not matter much, but you should make an informed decision while choosing the trading account. It is advisable to choose a demat-cum-trading account from a reputed brokerage firm.

• Safety
• Cost efficiency
• Flexibility
• Convenience

• Regular Demat account: A regular demat account is used by investors who reside in India.
• Repatriable Demat account: This type of Demat account is useful for non-resident Indians (NRIs) who want to transfer money abroad. You need to have a Non-Resident External NRE bank account for it.
• Non-repatriable Demat account: This account is also meant for NRI's, but who want to utilise the funds within India. It requires an associated NRO bank account

The main purpose of opening a demat account is to store shares or securities in an electronic format. In a nutshell, it's a safe and secure way to keep track of your shares online.

Yes, it is compulsory to have a demat account if you want to trade in the Indian stock market. However, demat account is not required to trade in futures & options (F&O).

It takes around 30 days to complete the dematerialization process.

• Loan facility
• Easy access
• Quick and easy transfers of shares
• No chances of theft or forgery of shares
• Account freezing facility
• No odd lots issue
• No stamp duty

Demat or dematerialised accounts were first introduced in India in 1996 by the National Stock Exchange (NSE). Since then it has revolutionized and transformed securities trading in the country and have made it faster, more secure, efficient and convenient.

Without demat accounts, trading and investing in securities would have not achieved the size, scale and speed that it has reached today. In the current age, we cannot imagine stock and derivatives trading without demat accounts. Indian investors today understand the importance of opening a demat account and it is proven by the fact that there were close to 3.5 crore demat accounts in India in 2018. In the same year, Indian investors opened 40 lakh demat accounts, the highest in a decade.

The popularity of demat accounts show that Indian investors are gradually moving from traditional investment instruments such as gold, real estate and fixed deposits to equities and derivatives. But what is a demat account and how it works?

A demat or dematerialization account is a system which allows the account holder or investor to store and trade stocks, bonds, ETFs, mutual funds and other securities in electronic form. Earlier stocks and securities were solely available and exchanged as physical certificates which made transactions and storage cumbersome and insecure. However, with the introduction of demat accounts, it reduced the time required for clearing, eliminated fraud cases, attracted more investors and traders, lowered brokerage rates and increased trading volume exponentially, especially in the equity market.

Today, it is mandatory to have a demat account if you want to invest or trade in equities, bonds, ETFs and other securities. The Securities and Exchange Board of India (SEBI) requires every company listed on the stock, derivatives and commodities exchanges to make available their securities in electronic form or demat form.

A demat account allows investors and traders to perform electronic trading of stocks, bonds, mutual funds, exchange traded funds, futures, options and commodities. It has several benefits over physical trading of securities, including:

• Faster and easy discovery of price of any security
• No risk of losing or damaging physical certificates in storage or transportation
• Enables technical and fundamental analysis of securities
• Ensures faster clearing and settlement of transactions by clearing houses
• Eliminates the risk of forged and fake share certificates
• Reduced cost of transactions
• No paperwork required for transfer of securities
• Updating change of address is fast and easy as the change occurs simultaneously with the DP and the companies from where you buy the securities

A demat account works similar to a savings bank account. While in a savings account, you can store cash in electronic form with a bank, in a demat account, you can store securities with a depository participant (DP) affiliated to the NSDL. The demat account allows you to hold shares and securities of various companies electronically. When you buy shares or securities, those are credited to your demat account and debited when you sell them.

We hope that now you have a better understanding of what is a demat account and how it works, and its benefits. Let's get into some technical details now.

Demat accounts were made mandatory for trading in securities when the Depositories Act was passed in 1996. In the same year the National Securities Depository Limited (NSDL) came into existence as the largest repository of electronic securities in the country. After 3 years, in 1999, the Central Depository Services Ltd. (CDSL) was formed.

NSDL and CDSL are the two depositories in India formed under the Company Act, 1956 and registered by the SEBI. These two depositories have the authority to enrol agents known as depository participants (DPs) to provide demat services to Indian investors.

There are 3 key players in the demat account opening process. First, is your bank; second is the DP; and third is the main depository.

• Bank - It is mandatory for you to link your savings bank account with the demat account as the money is used from your bank account to buy the securities. Once the securities are bought, they are then credited to your demat account. When you sell them using a trading account, it is deducted or debited from your demat account.
• Depository participant (DP) - You need to approach a DP before opening a demat account. A depository participant can be a non-banking financial institution, a bank or a broker that has been authorised by the NSDL or CSDL to handle demat accounts on their behalf.
• Depository - Depositories such as the NSDL and CSDL are responsible for maintaining the demat accounts and are key to the demat account opening process. While the DP has the authority to make transactions and update your demat account and acts as an intermediary between the depository and you (demat account owner), the depository holds the demat account in your behalf.

Demat, trading and savings accounts are different in how they function but they work together to provide you maximum benefits. These three types of accounts must be interlinked before you invest or trade in debt or equity assets.

A savings bank account is the first thing that you need to have to open a demat account. Once you buy the securities which are funded from your bank account, it's credited to your demat account that holds these securities for you. However, if you want to sell and buy these securities frequently as a trader, you also need a trading account. Nowadays, most brokers provide a trading account along with a demat account so you don't have to worry about first opening a demat account, and then getting a trading account. Once you have a 2-in-1 demat and trading account, you can link both of them to your savings bank account and start trading in equities, commodities, derivatives, mutual funds and currencies.

Before opening a demat account, you must know how to evaluate the features and benefits of an ideal demat account. If you are looking for the best demat account in India, here are a few pointers to help you move in the right direction.

Simple Demat Account Opening Process

Simplicity is definitely a virtue when opening a demat account. SEBI provides a detailed process for opening a demat account but a lot rests on your broker to further simplify that process. Since demat accounts uses a digital method the entire demat account opening process should be carried out online.

Your depository participant (DP) should provide an e-KYC process that can be undertaken online by only using your Aadhar data. While the entire verification and documentation process is done through the internet, the DP should also be able to perform self-identification through online video mode. Also, check how soon you can start trading after opening a demat account - the sooner the better. Some DPs allow you to trade within an hour while some may ask you to wait for a few days. Ensure that your broker provides a fast, easy and transparent account opening process.

Low Demat Account Charges

Today, most DPs, banks and financial institutions do not charge customers for opening a demat account. However, there are operational costs associated with a demat account that you need to take into consideration.

For instance, you will have to incur the following charges to maintain a demat account:

• Annual maintenance charge (AMC)
• Transaction fees charged every time securities are debited from your demat account
• Charges on rejection of Debit Instruction Slip (DIS)

Opt for demat accounts with zero AMC and reasonable charges. If you are a first time investor, you can also take advantage of attractive offers carried out by brokers, banks and financial institutions. If you want to just test the waters and are fine with limited privileges, you can open a Basic Services Demat Account (BSDA) that only provides the bare essentials at reduced costs.

Easy to Access and Operate

Investing and trading should be a seamless process with your demat, trading and savings bank account. It is essential that linking between the demat, trading and bank account is hassle free and easy for smooth transactions. Therefore, it is best to go for a 2-in-1 Demat and Trading account that provides seamless integration with your savings bank account.

When you are trading in shares, a minor delay can lead to losses, therefore fast and easy integration is vital. Also, ensure that your DP provides a mobile app that allows you to track, update and transact on the go. Another point to check is the online and mobile interface of the demat and trading account provided by your broker or DP. The interface should be responsive, easy to understand and bug-free.

Investing Insights and Data Analysis

Whether you are first-time or a seasoned investor, data analytics is vital to your investment success. Today, DPs have moved over plain vanilla demat accounts and have upgraded themselves to provide an array of financial insights and data analytic services to clients.

To take advantage of these value-added but crucial services, choose a DP that provides you these services with reasonable charges. You should enquire whether they provide timely alerts, direct call-to-action requests, demat inflow and outflow analytics, real-time valuation, portfolio performance analysis, etc.

Before you open a demat account, be careful to learn about all these factors and maximize your returns and protect your investments. A demat account and trading account is as essential as a bank account today to take advantage of India's thriving financial markets. Don't lose on this opportunity and open a demat account today to kick-start your investment journey.

With Chris Wealth Management and Demat Trading account, you get access to the industry's best trading platform and regular personalised portfolio analysis. Chris Wealth Management stock brokerage services which provide demat services of both NSDL and CDSL. Client investing with Chris Wealth Management can use proprietary TT EXE, TT web (desktop) and Chris Wealth Management Securities app for transactions. For HNI clients, we provide dedicated experienced RMs to help in execution and advice.

The procedure for opening a demat account is very simple and easy. Here's how you can open your demat account:

• Firstly, you need to choose the depository participant(DP) with whom you want to open your account.
• Fill up the demat account opening form.
• Fulfill the KYC details online.
• Once you have submitted your demat account opening form along with the KYC documents, the next step is to get your documents verified.
• Once this process is done, you will be given a unique beneficiary owned identity number (BOID) in order to access your demat account.

Bank, depository, and depository participants are the three key elements in the demat account opening process.

• Bank - It is compulsory to link your bank account with the demat account so that you can use money from your bank account to buy shares.
• Depository - Depository is an entity that holds your securities in a dematerialized form. CDSL and NDSL are two authorized depositories operating in India.
• Depository participant - DP acts as an intermediary between the investor and depository.

In India, a depository participant or DP acts as a mediator between the investor and depository (NSDL and CSDL). It is also known as the agent of the depository. A DP could be a bank, a broker, or a financial institution.

These are some of the benefits of a demat account -

• Reduced risks
• Loan against securities
• Reduced cost
• No odd lots issue
• Easy transfer of shares
• Reduced time

The fee for maintaining a demat account with India Infoline is zero. Yes, you don't need to pay demat account maintenance fees for one year. Zero demat AMC for 1 year.

Opening a demat account is a simple enough process. In addition to being aware of the documents required, you'll also need to get to know the fees and charges associated with opening a demat account. In today's financial climate, a demat account is indispensable to buy or sell electronic shares. Before delving into the charges levied for account opening and for other services, it's essential to understand the advantages of a demat account.

Among the many different depository participants, India Infoline is one of the most premier and attractive service providers. The demat account opening charges of Chris Wealth Management is not only competitive, but also transparent with absolutely no hidden charges. The schedule of demat account charges of India Infoline are tabulated below to help you understand the fees and charges involved with a demat account.

Most investors find it hard to comprehend the nature of services and fees charged by a depository participant. In order to make it easy for you to understand the various demat account charges levied by India Infoline, here's a brief explanation on the particulars of each service.

Account opening fee:

This is a one-time fee charged by almost all depository participants as part of the process involved in opening a demat account.

Annual Maintenance Charges (AMC):

AMC is a fee that is charged annually by depository participants for maintaining your demat account. These charges are levied irrespective of the number of transactions that you make in a year. When you open a demat account with India Infoline, you don't have to part with any Annual Maintenance Charges for the entirety of the first year. You will only be required to pay an AMC of Rs. 450 from the 2nd year onwards.

Dematerialization of share certificates:

The process of converting physical share certificates to electronic records that can be held in a demat account is fondly known as dematerialization. A fee is normally charged by depository participants for dematerializing your share certificates. While most DPs like Chris Wealth Management charge a flat dematerialization fee per share certificate, others charge a fee based on the total value of the securities.

Rematerialization of share certificates:

Rematerialization is the process of converting electronic records of shares back into physical share certificates. Similar to dematerialization, a fee is charged for rematerialization of shares as well.

Conversion of mutual fund units:

A fee is typically charged by depository participants to convert mutual fund units that are held physically into a dematerialized form. As a general rule of thumb, most depository participants only charge a flat fee for conversion of mutual fund units.

Destatementization:

The process of converting mutual fund units from its physical form into a dematerialized electronic form is known as destatementization.

Reconversion of mutual fund units into Statement of Account (Restatementization):

Restatementization is the process by which a depository participant converts mutual fund units held in a demat account back into its physical form. The physical form of mutual fund units is represented by a Statement of Account (SOA).

Redemption:

The process by which you sell your mutual fund units back to the fund house is known as Redemption. The value of the mutual fund units as on the redemption date is credited back to your bank account by the fund house. Usually, a flat-rate fee is charged by a depository participant for each redemption request.

Postal Charges:

Postal charges are levied by depository participants to physically courier documents and statements of account to you.

The process of opening a demat account with India Infoline is extraordinarily smooth. You can get your demat account up and running in just a few days' time. Chris Wealth Management offers the following two modes using which you can open a demat account in record time.

Online mode:

Step 1: Firstly, you need to visit www.indiainfoline.com.

Step 2: Once you've opened the website, click on open a trading account.

Step 3: You will be asked to enter your basic details such as your email ID and your mobile phone number.

Step 4: After you've submitted all the required details, you will receive a One-Time Password (OTP) on your email ID and your mobile phone.

Step 5: Verify both the OTPs that you receive. Upon successful verification, you will be required to fill and submit an online account opening form.

Step 6: After submitting the form, you will be contacted by a Relationship Manager (RM) from Chris Wealth Management regarding the documentation that you will need to submit.

Step 7: Once all your forms and documents are received by Chris Wealth Management Head Office (HO), your account will be activated within 24 hours.

Offline mode:

If you're more comfortable with the traditional offline mode of opening a demat account, all that you need to do is give a missed call on this number - 080 6671 9101. One of the Relationship Managers from Chris Wealth Management will contact you and walk you through the entire account opening process.

Before opening a demat account, it is always a good idea to keep the following things in mind. This would not only ensure that you take the right decision but will also make the process much smoother.

Select the right depository participant:

Since there are plenty of registered depository participants in India, take the time to research and analyse their performance and track record. Generally, full-service stockbrokers like India Infoline provide a more satisfactory service when compared with discount brokers. Additionally, full-service stockbrokers are renowned for their range of products, services, and customer support.

Read the schedule of charges:

Demat account charges levied by depository participants are almost never the same. That's exactly why you should always ensure that you take a close look at the schedule of charges before opening a demat account. This way, you can fully understand the extent of applicable fees and make sure that there aren't any hidden charges.

Keep all documents handy:

Keeping all the necessary documents in hand before going ahead with the account opening process can help you out tremendously. With all the documents by your side, the demat application process can be completed quickly without any hassles or mistakes that can lead to rejection.

A demat account is an electronic account that is used to hold the equity shares and securities you purchase. Demat accounts were first conceptualized in the year 1996 as an alternative to physical share certificates. Thanks to the widespread adoption of dematerialization of shares, demat accounts are now mandatory for buying or selling shares in the stock market. These accounts not only make it easy to trade in shares, but also come with a host of other benefits. Briefly explained below are some advantages of opening a demat account.

Convenience:

Back in the initial days of the stock market, as an investor or trader wanting to buy or sell shares, you had to be physically present in the stock exchange. However, that's not the case with demat accounts. Since all of the records are electronic and online, you can buy and sell shares from anywhere in the world and at any point in time.

Safer alternative:

Before demat accounts came into the scene, the stock market was rife with fake, fraudulent, and forged share certificates. All of those risks were completely nullified with the introduction of demat accounts. There's absolutely no risk or chance of receiving forged share certificates at all.

Reduced costs:

Demat accounts have eliminated several additional costs associated with physical share certificates such as handling charges and stamp duties. This ultimately results in more savings and helps maximize your profits.

Quicker transactions:

Apart from these advantages, demat accounts have also significantly decreased the time taken to transfer shares. Furthermore, the settlement of trades and the delivery of equity shares are done on the same day, thanks to demat accounts.

The way online demat accounts work is very similar to how bank accounts function. In order for a demat account to function to its fullest potential, it has to be linked with a trading account. Whenever you buy a share of a company via your trading platform, your depository participant forwards your 'buy' order to the stock exchange. The exchange then matches your 'buy' request with a corresponding 'sell' request from another trader or investor.

Once your order is matched, an order from the stock exchange is sent to a clearance house, which then settles the trade. Once the trade has been settled, the number of shares that you bought get credited to your demat account at the end of the trading day. Simultaneously, the demat account of the seller gets debited for the number of shares that were sold.

No, it is not possible to open a demat account with a depository directly. You only do so through a depository participant, who basically acts as an intermediary between you and the depository.

Yes, there are no restrictions with respect to the number of demat accounts you can possess.

Yes, you can pledge the securities in your demat account with a bank or a financial institution to secure a mortgage. However, a nominal fee for creation of pledge might be levied by your depository participant.

Yes, you can temporarily freeze your demat account for a specified period of time, during which no debits or credits to your account can be made.

No, it is not mandatory to have a nominee for your demat account.

Now that you have a more comprehensive awareness of the charges associated with opening a demat account, you can make an informed decision about opening one. Keep in mind that in addition to your demat account fees and charges, you'll also need to bear the costs associated with your trading account. With financial markets now becoming extensively digital, most depository brokers only charge nominal fees.

'Demat account' is a frequently used term in the world of trading and investments. The popularity of these accounts has scaled new heights with close to 4 million Demat accounts opened in 2018 singularly, a 13% increase from the previous year.

The dramatic shift in the savings pattern of Indians from traditional instruments to available alternatives such as stocks is primarily responsible for the jump.

Increasing demand for these accounts has also led to depository participants offering the best features at minimum costs, thus benefiting investors. Plus, SEBI has mandated holding a Demat account for stock market trading.

Take a look at three crucial terms in this context for a better understanding of Demat account in India.

Dematerialisation

It is a process that facilitates the conversion of share certificates from physical to the electronic form. Shares held thereafter are easier to manage while providing more accessibility from anywhere around the globe

Dematerialisation also allows you to monitor and track your holdings seamlessly, on-the-go.

Depositary participants

A depository participant acts as an intermediary or agent of a central depository and provides namesake services to investors and traders. India currently has two central depositories registered with the apex trading and investment regulatory body SEBI.

• NSDL
• CDSL

A depository participant must, therefore, be registered with either of these two licensed operators to open a Demat account.

Unique 16-digit client ID

Each Demat account is assigned with a unique 16-digit client ID that acts as the investor's identity. The first 8 digits of the ID represent the depository participant while the last 8 digits act as a unique identification for the investor, facilitating sale or purchase of shares and securities.

Opening a Demat account is quite a straightforward process. If you're interested in opening one, this step-by-step guide can help put things in perspective.

Step 1: Apply For A Demat Account Online

To open your free demat account through Chris Wealth Management Securities app or website, submit your mobile number & email in the form.

Step 2: Submit The KYC Details Online

To register with the DP and open a free demat account online , fulfilling KYC (Know Your Client) formalities is mandatory. You can submit your KYC details on the website or on the mobile application.

Step 3: Get Your Documents Verified

Once you have submitted your KYC details online, your DP client will verify your KYC details to ensure utmost transparency.

Step 4: Acquire Beneficiary Owner Identity (BOID)

Upon processing your application, you will receive a unique 16-digit demat account number (BOID) by the DP. Once you get your BOID, you have successfully opened a free demat account with Chris Wealth Management Securities.

The documentation involved in opening a Demat account is minimal. This makes it easier for new applicants to see the process through from start to finish without any hassles. You are only required to submit the following documents.

• Identity proof: A copy of your PAN card with your photo
• Address proof: A copy of any one of the following documents shall serve as proof of your residence.
  • Voter's identity card
  • Registered lease agreement
  • Driver's license
  • Passport
  • Aadhaar card
  • Landline telephone bill
  • Electricity bill
  • Apartment maintenance bill
  • Copy of your insurance
  • Ration card
  • Gas bill
  • Bank passbook or account statement (not older than 3 months from the date of receipt of documents)
• Bank account proof: A copy of your bank account passbook or bank statement (not older than 3 months)
• Proof of your income: A copy of your latest salary slips or your Income Tax Return (mandatory for currency and derivatives segment)

The Demat account charges levied by India Infoline are highly competitive and transparent, and they cause no significant financial burden to investors and traders. The entire schedule of fees and charges for opening a Demat account are tabulated below.

In the current scenario, if you're interested in investing in the share market, you cannot do so without a Demat account. That's how important a Demat account is to share trading. Some of the other reasons that make a Demat account so important are briefly explained below.

Safety:

With a Demat account, you don't have to worry about dealing with forged or fake share certificates. Each record of shares that you have in your account is genuine.

Convenience:

Proper storage and maintenance of physical share certificates can be tiresome. Also, there's the risk of having your certificates lost or damaged. A Demat account solves all of these issues.

Accessibility:

Since all the records associated with a Demat account are online and electronic, you can access them from anywhere and at any point in time.

Lower charges:

A Demat account does away with additional costs such as handling charges and stamp duties, which were levied on physical share certificates. This translates to lower costs and significant savings.

Multiple securities:

A Demat account doesn't merely support the equity share market. It can also be used to hold other electronic financial instruments such as bonds, mutual funds, and debt securities, among others. This enables you to track and monitor all of your investments under a single roof.

Before you go ahead and open a Demat account with a depository participant, you need to keep in mind certain essential pointers. Here are some things to remember before opening a Demat account.

Link your Demat account to your trading account:

A trading account is necessary for buying and selling shares in the stock market. Without it, there isn't much use for a Demat account, except to hold your financial assets. Therefore, it is a wise idea to link both these accounts when you're opening a Demat account. Alternatively, you could also opt for a depository participant like India Infoline, who offers both Trading and Demat accounts under one roof.

Ensure you're aware of all the Demat account charges:

Before submitting your Demat account opening form, always read through the statement of fees and charges. You could also compare them with other depository participants to ensure that you're getting a good deal. Being aware of the charges upfront ensures that you are not caught unawares once you've begun trading.

Fill in your details correctly:

Remember to double check the details in your Demat account opening form before submitting it. This way, you can make sure that there aren't any mistakes or fields left unfilled. Errors like these could lead to your application getting rejected. To ensure that your details are all correct, you could also enlist the help of a third person to verify your form before submitting it.

File your nomination:

Most people tend to miss this step while opening a Demat account. It's not a good idea to put off filing a nominee, because you might tend to forget to do it in the future altogether. Having a nominee for your Demat account is critical, since it makes the process of transmission of shares much easier in the future.

When it comes to choosing the right Demat account for you, your needs and requirements play a significant role in influencing your choice. Here are some points that you should consider when you're opening a Demat account.

Type of depository participant:

Primarily, there are two different types of depository participants - discount stockbrokers and full-service stockbrokers. A discount stockbroker generally does not provide any other services apart from share trading and trading in the derivatives segment. On the other hand, a full-service stockbroker like India Infoline offers plenty of additional services such as mutual fund investments and investment in IPOs. The depository participant that you choose can shape your stock market experience significantly.

Fees and Demat account charges:

The fees and charges that DPs charge vary widely from one to another. Therefore, it's always a good idea to thoroughly read through the fees and charges section before signing up with a depository participant for opening a Demat account. This will prevent you from getting caught unawares with hidden charges or fees at a later point in time.

Customer support:

Customer support is another important metric that you can use to choose the best Demat account. Your depository participant should possess a robust customer support mechanism to help resolve queries and issues. When things go out of control, you should be able to bank on your DP to help bring things back on track as soon as possible.

Trading technology:

Before signing up with a depository participant, you also need to evaluate the trading technology used by them. In order to conduct your trades in a smooth and seamless manner, it is essential to have a user interface that is clean, clutter-free, easy to understand, and user-friendly.

Features:

Not all depository participants offer the same set of features. Therefore, take a look at the features and benefits offered by various DPs before choosing the right one for your trading requirements. Some of the must-have features for quick and effective trading include:

• Real-time stock feeds
• Bid and ask spreads
• The ability to customize watchlists
• Quick analysis on stocks and companies
• Details of your portfolio

Things to Note:

What is ISIN number?

ISIN (International Securities Identification Number) is a unique 12-digit alpha-numeric identification code that is used to identify specific securities. (E.g. INE214T01019).

How to find ISIN number?

One could find the details related to the ISIN number of securities on the website of National Securities Depository Ltd and Central Depository Services (India) Ltd.

Power of attorney (PoA)

• A Power of Attorney authorizes some other person to operate your DP account on your behalf. You could authorize any individual to exercise PoA rights after submitting it to the DP.
• You have the option to grant PoA in favour of your broker and/or DP to operate your account, i.e. make transactions in your bank and DP account and buy or sell shares on your behalf. However, it is advised to carefully read and understand all the clauses of the PoA before signing it.
• PoA is not a mandatory facility and thus, purely optional. No stockbroker or DP can deny services to you if you refuse to execute it. You can revoke a PoA at any time.

Other Features Of Demat Account

Consolidation: If you want to consolidate various folios of a particular company into a single folio, you can forward the physical certificates along with the letter signed by you to the RSTA of the company.

Account freezing: You have the option of freezing your account, any specific security, or even a particular number of securities for any given period of time.

Account types: Just like a bank account, you can open a demat account in single/joint names/multiple accounts. But in case of a minor account, a guardian should be appointed for operating the account.

To truly make the most of your access to the stock market, you require a depository participant that offers state-of-the-art features and dependable support. India Infoline excels in these areas, which is why you'll be glad to choose us. By opening a Demat account with Chris Wealth Management, you stand to gain in more ways than one. Here's a glimpse at how an Chris Wealth Management Demat account can benefit you.

• The annual Demat account charges for maintaining your account are also nil for the first year.
• You get Free Delivery Brokerage for lifetime.
• Through a single Demat account on the Chris Wealth Management platform, you can trade in a variety of instruments and options like equities, derivatives, IPOs, mutual funds, and commodities, among others.

And that's not all. In addition to the advantages that are specific to the Chris Wealth Management Demat account, you also get to enjoy a variety of other benefits when you opt for India Infoline's trading solutions. Here are more reasons why Chris Wealth Management is the best choice for you.

• You have our dedicated support team at your disposal.
• We offer daily and weekly reports customized for you.
• Our analytical tools help you understand the financial markets better.
• With TTWeb, our trader terminal, you can view, evaluate, and perform trades at incredible speeds.
• Our knowledge portal is backed by an award-winning research team.
• The Chris Wealth Management Markets App comes with a user-friendly interface and enables you to execute trades and watch the markets from anywhere, at any time.

India infoline offers one brokerage plan which has the best offering. This plan allows you to enjoy a fixed brokerage rate depending on the segment you're trading in. The Brokerage charges are Free for Delivery trades and Rs.20/Order for Options. For Intraday and Futures the charges are Rs.20/Order or 0.05% whichever is lower. There are no Minimum Margins or Monthly Subscription fees. The Annual Maintenance charge for the first year is also zero.

Other Charges associated with the Brokerage Plan:

• In addition to the brokerage charged, you shall be liable to pay GST at 18%, STT, and other statutory charges as applicable.
• You can also make use of our call center services at a nominal rate of Rs. 50 per call. GST shall also be levied on this charge.
• The postal charges for physical dispatch are Rs.47.2.

A demat account can be closed as easily as it is opened. To close a demat account, you will have to submit a request form signed by all the holders (in case of multiple holders). You will have to transfer all the holdings of the demat account before closure. The DP will not process the closure application if any Dematerialisation requests are pending.

Conclusion: Opening a DEMAT account is a simple, speedy and smooth process. By keeping in mind the set of aforementioned factors and details, you, too, can open a DEMAT account at Chris Wealth Management in a completely hassle-free manner.

Submit the following documents to kick start your Demat account opening process.

• Proof of Identity (Copy of your PAN Card)
• Proof of Address (Driving License/Passport/Voter ID Card/Aadhar Card)
• Proof of Income (Copy of your salary slip/ITR)
• Proof of Bank account (Copy of your bank account passbook or statement)

You can open a Demat account with India Infoline at minimal charges of Rs.295. Also, you get to enjoy zero demat Annual Maintenance Charges (AMC) for 1 year.

With India Infoline, you can avail the following benefits -

• No demat account maintenance charges (AMC) for 1 year
• Also, you get to trade in a wide variety of financial instruments such as IPOs, derivatives, commodities, mutual funds, and equities via a single demat account.
• 0 Brokerage on Delivery.

It is advisable to add a nominee in Demat account as it makes the process of transmission of shares much convenient in the future.

• Easy holding
• Loan against securities
• Freezing demat account
• Hassle-free transfer of shares
• Less paperwork
• Reduced risks

You need a demat account to hold your shares and securities in the electronic format. And opening an online demat account is a fairly straightforward process. To begin with, you need to select a depository participant (DP). DPs can be banks, financial institutions, brokers, or any other entities authorized by SEBI to act as an intermediary between you, the investor, and the depository.

Before you begin the process of opening a demat account, you'll need to look up the depository participant's terms and regulations to understand the documents needed to get your account activated. Knowing the list of documents needed for an online demat account beforehand can help you be prepared for the account opening process. This, in turn, will help you get done with the application process quicker. Furthermore, having your documents in place can also make the approval process faster from DP's end.

In order to open a demat account with a depository participant, you need to first ensure that you're eligible for the same. The following categories of individuals can open a demat account in India.

• Resident individuals
• Minors
• Non-resident Indians

In the case of minors, the account is to be operated by a guardian or a parent till the minor attains 18 years of age.

Non-individuals in the following categories are also eligible to open a demat account with a depository participant.

• Corporate entities
• Partnership firms, provided the demat account is in the name of the partners
• Registered/unregistered trusts, provided the demat account is in the name of the trustees
• Registered/Unregistered societies, provided the demat account is in the name of the members
• An Association of Persons (AOP)
• Limited Liability Partnership (LLP)

In addition to this, banks and mutual funds can also open a demat account. Foreign Institutional Investors (FII) and Foreign Portfolio Investors (FPI) can open trading accounts.

While the exact set of documentation requirements may vary from one depository participant to the next, there are generally three classes of documents that every DP needs you to provide in order to see the demat account opening process through. These are three primary types of documents required.

• A proof of identity
• A proof of address
• A proof of income

List of Documents Qualifying as Proof of Identity

Any document that is registered with the government and that has your photograph on it is admissible as proof of your identity. Typically, these are some options that can act as an identity proof.

• Your PAN card with a valid photograph
• Any document with a Unique Identification Number (UID), such as Aadhaar, passport, voter ID card, or driving license
• Your ration card, provided it contains your photograph
• Any identity card or document containing your photo, issued by one of the following bodies:

  List of Documents Qualifying as Proof of Address

  To fit into this category, your documents need to contain your address. Any of these documents can be admitted as proof of address for the purpose of opening your demat account.

  • Your passport
  • Your voter's identity card
  • Your ration card
  • Any registered lease or sale agreement of drawn up for the residential property you're residing in
  • Your driver's license
  • Any utility bill with your address on it, such as an apartment maintenance bill, a gas bill, the telephone bill for your fixed landline connection, or your electricity bill, provided they're not older than 3 months from the date of application
  • An insurance copy
  • A copy of your bank account statement or passbook, not more than 3 months older than the date on which you're applying for your demat account opening
  • Documents issued by any government or statutory authority
  • Any proof of address issued by one of the following persons or bodies:
    • Bank managers of scheduled commercial banks, co-operative banks, or multinational foreign banks
    • Any gazetted officer
    • A notary public
    • An elected representative to the Legislative Assembly or the Parliament
  • Any identity card or document containing your address, issued by:
    • Central or state government and its affiliated departments
    • Any statutory or regulatory authorities
    • Any Public Sector Undertakings (PSUs)
    • Any scheduled commercial banks
    • Public financial institutions
    • Colleges affiliated to Universities
    • Professional bodies like the ICAI, the ICWAI, the ICSI, or the Bar Council, among others

  In case you're a judge at the high court or the supreme court, a self-declaration giving your new address is an admissible proof if you're opening a demat account for yourself. Additionally, any proof of address in the name of your spouse may also be accepted.

  List of Documents Qualifying as Proof of Income

  Another set of documents required for demat account opening deals with providing proof of your income. Some examples of papers that are admissible as proof of your income are listed here.

  • A copy of your Income Tax Return (ITR), as it was submitted to the Income Tax Department
  • A Net Worth Certificate that has been duly certified by a Chartered Accountant
  • Any proof of your salary, such as a recent salary slip or form 16
  • A statement of your demat account holdings with any other eligible Depository Participant
  • A statement from your current bank account showing the history of your income for the 6 months preceding the date of application

  Other Documents Required to Open a Demat Account

  Your PAN card is a mandatory proof required for demat account opening. In addition to the documents mentioned above, you will also be required to submit these papers.

  • A proof of your bank account, such as a cancelled cheque or your passbook
  • A recent passport-sized photograph of yourself

Chris Wealth Management offers you the facility to open a demat account for a minor. The minor is required to be the sole holder of the account, meaning that no joint holders or nominees can be appointed. Furthermore, the account of the minor can only be operated by the parent or guardian concerned.

In case you're planning to open an online demat account in the name of your minor child, you'll need to produce the relevant documents to proceed with this undertaking. Here's what we require.

• A copy of the minor's PAN card
• A copy of the minor's birth certificate
• A copy of the PAN card of the guardian, with the photo clearly visible
• ny proof of bank accounts held in the name of the minor
• Any proof of address of the guardian

Only the minor's father or mother can be considered as a guardian. In case the guardian's relationship with the minor is not parental, then the said guardian should have been appointed by a court order.

You may also need to get some of your documents attested in order to successfully complete the demat account opening procedure. In case this is necessary, here's a list of people who are authorized to attest your proofs.

In case you are a Citizen of India:

• Notary public
• A gazetted officer
• Any manager of a scheduled commercial bank, a co-operative bank, or a multinational foreign bank

In case you are a Non-Resident India (NRI):

• Authorized officials of overseas branches of scheduled commercial banks that are registered in India
• The manager of the branch of any public sector Indian bank located in your area of residence
• A notary public
• Any court magistrate
• A judge
• An official of the Indian Embassy or the Consulate General in the country where you reside

To attest your documents, the person qualified to do so should affix the following details on the copy of the relevant document.

• Name
• Designation
• Seal

If you're a non-resident Indian looking to open a demat account with a depository participant based in India, like India Infoline, you have the option to choose from any one of two types, namely non-resident external (NRE) or non-resident ordinary (NRO).

The documents you'll need to produce are listed here.

• A proof of your Indian address proof, required only in the case of an NRO account
• A proof of your foreign address proof, required compulsorily in both cases
• A Portfolio Investment Scheme (PIS) letter issued by the RBI
• A copy of your PAN card
• Any proof of your bank, such as your passbook or a statement of your bank account, clearly indicating the details of whether it is an NRE or an NRO savings account

If your bank proofs do not mention the category of the account (whether NRE or NRO), a verification letter is required from your bank, mentioning this detail. Also, all the copies of your KYC documents should be attested by any entity qualified to do so.

Now that you have a detailed guide to get all your documents ready, you can be adequately prepared to supplement your demat account opening form with the necessary papers. Having your documents in order makes it easier for the depository participant to process your application quickly, so your demat account is opened faster and smoothly, without any hassle. This way, you get to begin trading in the financial markets sooner than later. It also gives your trading experience a neat start, devoid of any roadblocks.

Opening a demat account with India Infoline is a very simple and quick process. Here's a step-by-step guide on how to open a demat account online -

• The first step is to choose a depository participant.
• Fill out the demat account opening form.
• Submit copies of KYC documents such as address proof, bank account statements, identity proof, etc.
• The next step is the in-person verification.
• Once this is done, sign an agreement with your DP.
• Upon the approval of your application, you will get your unique beneficial owner identification number (BO ID).

The following entities can open a demat account in India -

Individuals:

• Resident individuals
• NRIs
• Minors

Non-individuals:

• Corporate
• Partnership firms
• Registered/unregistered trust
• Registered/unregistered society
• Association of Persons (AOP)
• Bank
• Mutual Funds
• LLP (Limited Liability Partnership)

The process of opening a minor demat account is very simple. This account is operated by a natural guardian (parent) or court-appointed guardians, in the name of a minor. The documents required to open a minor demat account includes the minor's PAN card, permanent address proof, and identity proof. Also, you need to submit two KYC (know your customer name) documents. Upon the successful verification of the documents, a demat account for the minor will be generated.

Yes, a person can open a demat account without income proof. It is not mandatory to have income proof while opening a demat account. Income proof is optional and only required in the case of derivatives and currency segments.

Yes, students are eligible to open a demat account. Anyone can open a demat account at any age. You don't have to be 18+ to open a demat account. If you are a student, then all you need to do is to submit your PAN card, identity proof, and KYC documents to open a demat account.

If you want to invest in stock markets, there are a plethora of factors that you should be aware of. Making money in stock markets is not a gamble or a lottery, but a process of systematic and scientific investments. Foremost, you should be aware of the fundamentals of stock markets. The first step for stock market investors is to open up a trading and Demat account. Your trading and Demat account will form the crux of your trades.

One crucial aspect is to know the difference between Demat Account and Trading Account. As a novice trader or investor, knowing this difference would ensure that you open the most suitable Demat and Trading accounts, and begin your journey of wealth creation plan.

Demat Account:

A Demat account is also known as Dematerialized account. In other words, converting or dematerializing your physical shares in the electronic format is known as holding a Demat Account.

Why can't I just hold my shares in the physical format? Why should I convert it in the electronic format?

• Holding physical shares involves risk. Your shares might get torn, damaged or lost. Besides, transferring physical shares would involve cumbersome paperwork.
• Your shares in the Demat Account can be maintained and stored easily and transferred effortlessly when the need arises. So, it is best to have a Demat Account.

How it works:

• Once you open a Demat Account, you will be provided with your unique Demat Account number. This will help you deal electronically with your shares. A Demat Account is quite similar to your bank account, where you have the option to deposit and withdraw money.
• In your Demat Account, your securities can be debited or credited. Just like in many bank accounts where you can have zero balance, you can also have zero securities in your Demat Account.

Importance of Demat Account:

• You can use your Demat Account to hold a wide variety of financial instruments like equity shares, mutual funds, government securities and exchange traded funds.
• It allows you to conduct multiple activities, including trading and investing at the click of a mouse.

Trading account

• A trading account is used to purchase and sell shares in stock markets. Once you have a Demat Account, and want to sell your shares, or purchase new securities, you need a Trading Account.
• Your Trading Account will have a unique trading number, which will be used to trade in shares.

History of Trading Account:

Before the age of digitalization, share markets operated on an open outcry system, where traders used verbal communication along with gesticulations to buy/sell shares. But, after stock markets adopted the electronic system, the open outcry system was replaced by digital accounts.

Importance:

• Once you want to start trading in share markets, you require having three accounts: A bank account, a Demat Account and a Trading Account. Let us understand this with an example. Ashok wants to purchase shares of a particular company. He will place an order through his Trading Account, following which the transaction will be processed in the given stock exchange. The shares will then be deposited in his Demat Account, while the requisite money will be deducted from his bank account.
• So, to put it simply, a Trading Account acts as a link between your bank account and Demat Account, allowing you to trade in stock markets.
• Having an online Trading Account helps you to secure access to multiple stock markets like National Stock Exchange (NSE), Bombay Stock Exchange (BSE), National Commodity and Derivatives Exchange (NCDEX) and Multi Commodity Exchange (MCX).

Here is a look at the difference between both accounts.

Functional difference

The main function of a demat account is to hold securities like shares in an electronic format whereas a trading account is used to buy and sell shares in the stock market.Trading account helps you trade in the share market.

Difference in the nature of both the accounts

A demat account works just like a savings account. Like savings account holds money, demat account allows investors to store financial instruments in a dematerialized or electronic form which are debited and credited accordingly. A trading account, on the other hand, functions more like your current bank account. You need to have both demat as well as trading account to trade in the stock market.

The role of a Demat vs a Trading account

The key role of a demat account is to ensure the safety of investor's shares. It allows investors to store shares in an electronic form, instead of the physical form. This account represents your current wealth in the form of shares or stocks. Whereas you need a trading account to purchase and sell shares. This account allows you to carry out trading transactions in the stock market.

The difference in the measurement of time

As a demat account holds your shares and other securities, it is measured as a stock at a specific point in time i.e., end of each financial year or on March 31 whereas a trading account is a flow statement that reflects your trading transactions and is always measured over a period of time.

Opening a Demat Account

Opening a Demat Account can be explained with the help of following simple steps:

Step 1: Contact any Depository Participant (DP), who is an agent of the depository. Their list is found on the websites of Central Depository Services (India) Ltd and National Securities Depository Ltd.

Step 2: Fill the account opening form. Provide the requisite documents pertaining to proof of address and identity.

Step 3: Now you will have to sign an agreement. This agreement will provide the details regarding your rights and duties as an investor/DP. Do not forget to get a copy of the agreement along with the schedule of related charges.

Step 4: Congratulations! Your account has been opened. You will now receive a Beneficial Owner Identification Number also known as Demat Account Number.

Opening a Trading Account

Opening a trading account can be explained with the help of these simple steps:

Step 1: Select a broker/firm of your choice by comparing the different service charges and brokerage rates.

Step 2: Inform the broker that you wish to open a trading account.

Step 3: Fill the account opening form. Here, you are required to provide the requisite documents, including KYC details, address and ID proof.

Step 4: Now the authorities will verify your application. The application verification process may take some time.

Step 5: You will now receive the details regarding your trading account.

Step 6: Congratulations! You are all set to begin your journey of trading in stock markets.

• Opening a Demat Account entails Annual Maintenance Charges (AMC), the amount for which differs from one service provider-known as Depository Participant (DP)-to another. You also might be required to pay transaction and custodian fees. Account Opening Charge on a Demat Account, however, has been removed.
• For opening a Trading Account, you are not required to pay any charges or fee. At the stage of trading, however, you can be required to pay a slew of charges like brokerage rates, GST, STT, stamp duty, etc.
• Here, you must remember that you can have multiple Demat and Trading accounts using a single PAN. All you require is to pay the requisite AMC and other charges.

Can I open a Demat Account without having a Trading Account?

• There is no statutory obligation for you to open both Demat and Trading accounts. You can easily have a Demat Account without a Trading Account.
• For instance, if you have applied for an Initial Public Offering (IPO), and just want to keep the shares, then a Demat Account would suffice. But, if you then want to sell these shares in stock markets, then you would mandatorily require a trading account.

Can I open a Trading Account without having a Demat Account?

• This again is possible. If you wish to trade only in futures, options and currency derivatives, then a Demat Account is not required. This is because all these trading forms are settled in cash.
• But when it comes to trading in all forms of equities, including equities intraday trading, you are bound by the regulations of Securities and Exchange Board of India (SEBI) to compulsorily have a Demat Account.

To buy shares in the stock market, you should start with funding your trading account. By debiting your bank account via NEFT/RTGS/IMPS or through a payment gateway transaction, you deposit a margin in your trading account that could be used to buy shares.

Any shares not squared off during the intraday trade, go for delivery in your trading account. By T+1 date, you will have to fund the balance delivery amount. On T+2, you will get a credit into your demat account and then shares held in the account could be sold whenever you want. By 11 am on T+1 date, you have to give the DIS to the broker for processing the demat debit or you can instruct online in case of internet trading. You can only sell clear (not marked) shares from your demat account.

In case of selling, on T+1 date, the shares get debited from your demat account. Following this, by end of T+2 date, the value of shares sold is credited into your bank account. This completes the buy/sell cycle in the trading / demat process!

Thus, you need to have a Demat Account to hold your shares in an electronic format. And to trade in stock markets, you require a trading account. Both are distinctive but crucial aspects of the trading process. After opening Demat and Trading accounts, you must begin your trading journey with a thorough understanding of the market and their instruments. You must always remember to take expert counsel as investment in stocks is subject to high market risk.

To begin your stock market journey, you can take advantage of the many benefits Chris Wealth Management Demat and Trading accounts have to offer. Chris Wealth Management is your one-stop-solution to trading in everything from equities and mutual funds to commodities and currencies. What's more, you get access to all the market segments 0f BSE, NSE, MCX and NCDEX. With an award-winning research team and world-class technological platforms, Chris Wealth Management can help you reach new heights of trading.

The following entities can apply for a demat and trading account:

Individual

• Resident Individuals
• NRIs
• Minors (Only in case of demat account)

Non-individual

• Corporate
• Partnership firms
• Bank
• Mutual Funds
• LLP (Liability Limited Partnership)
• FII/FPI (Only trading account)
• Registered/Unregistered trust
• Registered/Unregistered society
• Association of Persons (AOP)

India Infoline does not charge any account opening fee. Although, it charges a nominal fee for maintaining a demat and trading account. When you open a demat or trading account with India Infoline, you don't need to pay any annual maintenance charges (AMC) for 1 year. However, you will have to pay an AMC of Rs. 250 from second year onwards.

Individual beneficial owners must add a nominee while opening a demat or trading account as this makes the process of transfer of shares much more convenient.

Yes, you can easily transfer shares from one demat account to another. It can be done in two possible ways - manual and online. Manual mode of transfer requires a physical form. This type of transfer is also called an intra-depository or off-market transfer. While in the online transfer of shares, you have the option to transfer shares from one demat account to another online. All you need to do is to mention your demat account number in DIS.

Yes, you can open a joint demat or trading account with India Infoline. In addition to this, a demat account can have a maximum of three account holders, including one main holder and two joint holders. Chris Wealth Management allows you to open your demat or trading account in a single account name, multiple account names, or joint account name.

The number of individual investors in the capital markets has been rising at a rapid pace in India. Individual investors make up for around 38% of the total volumes of the Indian equity markets. A large number of new investors are coming from small cities and towns, in contrast to the earlier trend of participants largely from metropolitan cities. The advent of digital technologies and electronic trading has played an important role in improving access to the capital markets. An investor sitting in any part of the country can invest in a variety of products ranging from stocks and bonds to exchange-traded funds.

Things were not so simple two and a half decades ago. Physical certificates were issued to record every investment and investors had to keep it safe to claim ownership. In the earlier era, open trading used to take place in the stock markets. Investors used to shout buy and sell orders and were issued paper receipts to record the transaction. Additional paperwork was required to properly record the beneficiaries after the closure of the market. The paper-based mechanism was time-taking, cumbersome and prone to errors.

With the aim to simplify the process and make it convenient for the investors, the Securities and Exchange Board of India introduced the electronic book-keeping of shares. To electronically record the movement of shares, the trading has to be electronic and the physical shares have to be converted into an electronic form. The entire system for electronic book-keeping and trading of shares was set up in India through the Depositories Act, 1996. The Depositories Act led to consequential amendments in various other laws such as the Indian Stamp Act, 1899, the Companies Act, 1956, the Securities and Exchange Board of India Act, 1992, the Income-tax Act, 1961 and the Benami Transactions (Prohibition) Act, 1988.

The Depositories Act was passed with an aim to make transferability of shares and other securities free, fast, safe and convenient. It led to the establishment of depositories and the dematerialization of shares. Dematerialization is the conversion of physical certificates into an electronic form to enable electronic trading. Depositories are the entities tasked with the storage of dematerialized securities as unlike physical securities, electronic shares cannot be stored in lockers. Depositories provide virtual lockers to investors, which is used to store their respective securities.

To understand the process of dematerialization, you will have to know about the entities involved in the system. The four primary parties in the system are depository, the issuer or the company issuing the shares, the beneficial owner or the investor and the depository participant or the brokerage firms.

The depository is tasked with the storage of the dematerialized shares. There are two depositories in India- National Securities Depository Limited (NSDL) and Central Securities Depository Limited (CDSL). The issuer is the company that floats the shares or it could be any other entity that issues securities in any form. The depository participant is a SEBI-registered entity that is essentially an intermediary between the investor and the depository. Investors avail depository services only through depository agents.

The entire process of dematerialization takes place at different levels. The most important part is the dematerialization of shares at the investors' level, but let us also take a look at other processes that lead to dematerialization. Issuers or companies are an important part of the system and they have to follow a set of rules to get the shares dematerialized.

• To begin the process of dematerialization, a company has to revise its Article of Association through a special resolution in the general meeting of the company, allowing it to issue shares in the electronic form.
• After the amendment in the Article of Association, the issuer has to register with the depositories. Private companies in India have to register with both NSDL and CDSL. The depositories have their own set of criteria for registration and the issuer has to comply with them. Post successful registration, the depositories provide a unique International Securities Identification Number for each of the shares. An ISIN is a 12 digit code that is used to identify different securities such as shares, debentures, bonds, etc. The first two digits of the ISIN indicate the country of origin of the securities and hence ISIN in India starts with 'IN'.
• Just like investors, companies too get access to depository services only through an intermediary. If the issuer wants to transfer the dematerialized shares, it has to arrange for demat connectivity from depositories. Registrar and Transfer Agents act as an intermediary between the depository and the issuer. The company, the registrar and the depository enter into a tripartite agreement for different depository services like dematerialization, rematerialization and initial public offerings.

A similar arrangement has been put in place to provide depository services to investors. The depositories enter into an agreement with one or more participants. Any person can enter into an agreement with a depository for the storage of securities, but only through a depository participant. Along with brokerage firms, depository participants include insurance companies, banks stock exchange clearing cells, institutional managers, financial institutions and the Reserve Bank of India. Investors also have to follow a set of rules to convert their physical certificates into dematerialized shares.

Dematerialization of securities was a monumental reform in India. It changed the dynamics of the capital markets and led to an increase in the number of retail investors. Safety, convenience and ease of access are of the biggest benefits of dematerialization. Let us take a detailed look at the benefits of dematerialization.

• Safety: The conversion of physical certificates into electronic shares boosted the safety of the holding. Dematerialization eliminated the chances of shares getting lost or misplaced. Share certificates were also susceptible to theft and investors had to protect them like other physical assets. Dematerialized shares are stored in secure depositories, which has made theft a thing of the past. One of the other benefits of dematerialization is that it has eliminated the chances of forgery.
• Convenience: The dematerialization of shares gave a substantial boost to investor convenience. The transfer of shares used to take months to complete before dematerialization. Investors had to send the physical certificates to companies or registrars to get the name changed on the securities. It was a tedious process and used to take months. With a demat account, shares can be easily transferred and it takes just a couple of days to transfer ownership. Dematerialization had a similar impact on the process of changing the address of the investor. Earlier, investors had to fill out an application and send it to the companies for a change of address. Now, you just have to update your details with the depository participant and the address is updated in the company's records.
• Cost-efficiency: Electronic trading doesn't require cumbersome paperwork which automatically reduces a lot of expenses. Besides indirect cost savings, dematerialization led to the elimination of stamp duty, leading to a direct reduction in costs.
• Flexibility: One of the benefits of dematerialization is that it has led to increased flexibility and hence improved access for small investors. To simplify the calculation, shares were only traded in even lots before dematerialization. After the introduction of electronic trading, you can buy or sell even a single share without any restriction on the numbers.

Rematerialization is the exact opposite of dematerialization. Some investors may want to convert their electronic shares back into the physical form due to some reasons. Rematerialization is the process through which investors can get their electronic shares reconverted to physical certificates. You can opt to rematerialise your shares anytime you want. The process is completed within 30 days. However, rematerialized shares are illiquid as they cannot be traded.

Dematerialization is the conversion of physical shares into electronic shares while re-materialization is the opposite. Some of the key differences between dematerialization and re-materialization are in the process of execution, storage and costs. Dematerialized shares have unique ISIN while rematerialized shares have distinct numbers issued by the registrar and transfer agent.

• The transaction of dematerialized shares takes place electronically, but rematerialized shares have to be traded physically. As per the latest SEBI norms, rematerialized shares cannot be traded.
• Dematerialized shares are maintained by depositories, while rematerialized shares are maintained by respective companies.
• Since electronic shares are stored in secure depositories through depository participants, investors are required to pay the maintenance charges. The annual charges range in between Rs 500 to Rs 1000. Rematerialized shares or physical shares are stored by individual investors and no maintenance charges have to be paid.
• One of the most significant differences between dematerialization and re-materialization is the safety of the securities. The threat of theft is relatively lower in the case of dematerialized shares, while it is easier to forge or steal physical certificates.

The process of dematerialization and re-materialization is largely similar, with some important differences.

• To initiate the process of dematerialization, you will have to open a demat account through a depository participant.
• After opening a demat account, a dematerialization request form has to be filled and submitted to the depository participant with the physical certificates. Mention 'Surrendered for Dematerialization' on all the security certificates.
• After the submission of the form and certificates, the DP verifies the details and forwards the form to the company and the registrars through the depository.
• Post-approval, the physical certificates are destroyed and the exact amount of electronic shares are credited in the demat account.
• The shares are credited in the demat account of the investor after receiving confirmation from the depository.
• The entire process is completed in 15-30 days.

If you have dematerialized shares and want to convert it into physical shares, you will have to opt for re-materialization.

• To convert dematerialized shares into physical certificates, you will have to fill a remat request form and submit it to the depository participant.
• On receiving the form, the DP verifies the details and if everything is found in order, the DP issues an acknowledgement slip with stamp and sign.
• After the verification of details, the DP intimates the depository about the re-materialization request. The DP enters the request in software and a Re-materialization request Number is generated.
• The depository forwards the request with the documents to the registrar and transfer agent of the company.
• After receiving all the documents from the depository, the registrar verifies all the details. In case of any discrepancies, the registrar will demand its rectification and forward the request to the DP.
• If all the details are found correct, the registrar and transfer agent informs the depository and proceeds to print the certificates.
• The registrar sends the physical certificates to the client. Post conversion, the shares are allotted distinct numbers by the registrar and transfer agent.
• The depository on receiving the confirmation, informs the DP. The DP informs the investor and updates the account. The entire process is completed in 30 days.

International Securities Identification Number or ISIN is a 12-digit alpha-numeric identification number assigned to securities. It is essential for electronic trading of securities and investors have to quote the ISIN number for actions like transfer of securities.

In a departure from earlier practices, dematerialization has enabled the trading of odd as well as even number of shares. Similarly, you can choose to dematerialize any number of shares.

Chris Wealth Management is a full-service broker and provides high-quality research and other financial data to investors. Discount brokers just provide buying and selling services.

Much like a Demat account, a trading account is also vital for investing in the share market. It allows you to electronically buy or sell shares and other securities in the stock market. Back when physical share certificates still existed, the stock exchanges used an open outcry system. According to this method, traders who wished to buy or sell shares had to be physically present in the stock exchanges and had to verbally communicate with the other parties. However, ever since the stock market went completely electronic, the open outcry system has been replaced entirely by online trading accounts.

With an online trading account, you do not need to be physically present in the stock exchanges to place buy or sell orders. You can simply use your trading account from anywhere in the world to buy or sell shares. This has not only simplified the entire share trading process, but it has also facilitated extremely quick settlements and deliveries.

You can open a trading account only through a registered stockbroker like India Infoline, which acts as an intermediary between you and the stock exchanges. A unique user ID is mapped to every trading account, and each account is protected by a password for additional security. The difference between a trading account and a Demat account is that the former is used to buy or sell shares and securities, while the latter is used to hold the shares and securities purchased.

Online trading is serious business; there's no doubt about that. However, some facts and statistics about this practice are downright fascinating. And with online trading now ruling the stock markets, here are some facts about share trading and trading accounts that you'll find interesting.

• In January 2020 alone, the percentage of non-algorithmic trading in the cash market was 24.80 while the percentage of algorithmic trading was 13.01.
• Mobile-based trading comprised 18.51% of all trades in the cash market in January 2020, while internet-based trading came in at 11.29%.
• The number of trades grew from 2,237 lakhs in December 2019 to 2,605 lakhs in January 2020.
• In January last year, the quantity of shares traded stood at 2,67,820 lakhs. By January this year, this grew by around 75% to 4,71,101 lakhs.
• The number of clients registered as trading in equities stood at over 62 lakhs as on January 31, 2020.

With a trading account, you too can trade in equities and other financial assets regularly. In addition to this, there are other reasons to open a trading account as well.

In addition to the fact that a trading account is mandatory to buy and sell shares in our country, here are some other reasons why you need a trading account in India.

Access to Multiple Stock Exchanges:

An online trading account allows you to trade in multiple stock exchanges simultaneously. This was impossible during the initial days of the stock market, when all the shares and scrips were held physically. Also, you get to enjoy access to all the leading stock exchanges in India such as Bombay Stock Exchange (BSE), National Stock Exchange (NSE), Multi Commodity Exchange (MCX), and National Commodity and Derivatives Exchange (NCDEX). What's even more interesting is that you can access all of these exchanges via a single platform.

Access to Financial and Research Reports:

Online trading accounts offered by leading full-service stockbrokers like India Infoline provide valuable information on the stock market. With an online trading account, you can gain access to all the latest news, financials, and research reports of almost every listed company. These reports not only enable you to make informed trading decisions, but they can also assist you in fulfilling your financial goals within the right time frame.

Convenience:

An online trading account offers unmatched levels of convenience. Trading solutions offered by new-age platforms like India Infoline come with a dedicated smartphone application. This enables you to access the stock market from anywhere in the world and at any point in time. All you need is a smartphone or a handheld device to keep track of your investments and buy or sell shares conveniently.

Smooth Transactions:

With an online trading account backing your trades, you can smoothly and seamlessly conduct all of your stock market transactions. Right from fund transfers and placing orders to taking deliveries and monitoring your portfolio, trading accounts make every aspect of share trading systematic and hassle-free.

Customizable Trading Experience:

Since an online trading account is powered by state-of-the-art technologies, it gives you complete leeway to customize the experience according to your needs and requirements. Trading accounts allow you to customize your watchlists, modify your orders on-the-go, and even set floating alerts that notify you via SMS and email.

With India Infoline, you get to enjoy a hassle-free and smooth trading account opening experience with minimal documentation. Chris Wealth Management offers both online and offline modes for opening an online trading account. The following step-by-step guide will explain the account opening process in detail.

Online Mode

Step 1: Visit our website at www.indiainfoline.com.

Step 2: Click on the prompt that reads 'open a trading account'. The website shall redirect you to a new page, where you need to enter all your basic details in the relevant fields.

Step 3: Once you submit those details, you will receive One-Time Passwords (OTPs) on your mobile number and your email ID.

Step 4: Input the OTPs in their relevant fields and verify them.

Step 5: After verification of the OTPs, you will be required to fill in a trading account opening form.

Step 6: Once that is done, one of our Relationship Managers (RM) shall contact you on your phone or your email regarding the documentation requirements.

Step 7: Upon completion of the documentation process and the subsequent receipt of all the signed forms, your online trading account will be made operational within 24 hours.

Offline Mode

To open an online trading account via the offline mode, all you have to do is give us a missed call on this number - 08066719101. One of our Relationship Managers will get in touch with you and personally assist you with the account opening process.

The fees and charges for opening an online trading account with India Infoline are very nominal. Chris Wealth Management charges Rs.295 trading account opening fee, with absolutely zero Annual Maintenance Charges (AMC) for the first year.

When it comes to brokerage, India Infoline offers one brokerage plan - the Zero Brokerage Plan. Here's some more information about this plan

There are plenty of stockbrokers offering a trading account in India. Choosing the best one among them can quickly get overwhelming. Here are some tips that can help you narrow down on the best trading account in India.

Investment Options:

Not all trading accounts offer the same set of investment products. Some may only offer the opportunity to trade in equity and derivatives, while others may also provide other investment options such as debt securities, bonds, mutual funds, and government securities. It is always a good idea to opt for a trading account with a provider that allows you to invest in a wide variety of products. Chris Wealth Management, for instance, offers you the chance to invest in stocks, IPOs, derivatives, mutual funds, futures, options, currencies, and more.

Platform stability:

The stability of the trading platform is something that can either make or break your entire experience. When looking for the best trading account in India, always make it a point to check the track record of the performance of the trading platform. Steer clear of trading platforms that have crashed, glitched, or have been non-responsive consistently. Since your entire investment hinges on the trading platform's smooth and seamless operation, it is essential that you choose a stable platform.

Interface:

Another key metric to consider when selecting the best trading account in India is its user interface. The trading platform's interface should neither be too basic nor too advanced. It should seek to maintain a fine balance between the two. Also, the interface should be user-friendly enough to be easy to read and understand. Never choose a trading account whose interface is confusing or not comfortable for daily use.

Support:

When it comes to the financial markets, there's no guarantee that things will always go as planned. That's why it is critical to choose a trading account with an exceptional customer support backing it up. Ideally, the support team of a trading account should be responsive, understanding, and provide quality service in the event of a problem with the service.

Share trading is a risky affair. Not everyone who trades in the stock market gets to witness success. However, with proper planning and execution, you can certainly realize your financial goals. If you're a novice when it comes to the practice of share trading, here are some share trading tips that can help you protect your investments and help you earn high returns.

• Keep yourself well-informed about the financial markets and the economic scenario.
• Chart out a trading plan and stick to it.
• Diversify your investment portfolio.
• Keep a strict control over your emotions and do not let personal bias influence your trading decisions.
• Refrain from taking unnecessary risks to get rich quicker.
• Do not use borrowed money to trade.
• Refrain from trading in penny stocks.
• Avoid trading at the start and at the end of the trading day.
• Use stop-loss more often to keep your losses to a minimum.
• Set profit goals that are realistic.

Having access to the right trading platforms and tools can enhance your trading experience significantly. When you choose a depository participant, ensure that you get to know the platforms they support, so you can make a more informed decision. Without access to convenient trading solutions, your trades can get slow and cumbersome, ultimately resulting in losses.

Chris Wealth Management offers several next-gen trading platforms that are backed by cutting edge technologies. By opening an online trading account with India Infoline, you get to experience different platforms that support quick and efficient trading on-the-go. Here are some of the platforms and tools we offer.

TTWeb:

TTWeb is an internet-based trading platform that operates using your web browser itself. To trade on the share market, you only need to log into the TTWeb platform using your user ID and password. The user interface is clean and clutter-free, making this web-based platform perfect for you when you're trading from the comfort of your home.

TTExe:

This is a desktop application that you can download on to your PC. By installing the program and running it, you can enter the app's portal, which gives you access to a convenient interface that you can use to buy or sell financial assets. The advantage of using this desktop app is that you get to trade at impressive speeds.

Chris Wealth Management Markets:

This is a mobile app that helps you execute trades from your smartphone itself. It also boasts of a host of other cutting-edge features including an advanced dashboard, a customizable watchlist, trading tips, advanced technical charting, price alerts, and access to live prices. With a 4.4 star rating, Chris Wealth Management Markets is one of the most downloaded trading apps in the country.

Chris Wealth Management MF App:

If you prefer to trade and invest in mutual funds (MFs) alone, you'll find Chris Wealth Management MF app extremely useful. Dedicated to help you track and trade in MFs, this app allows you to have a test run as a guest user. It's also equipped with top-class features such as portfolio tracking, industry news and expert views, research-based schemes, and integration with the Chris Wealth Management Markets app.

By opening a trading account and linking it with your Demat account, you can make the most of the electronic solutions available to help you trade online. Before you open an account, ensure that your documents are in place, so you can get through the process smoothly and in a timely manner. If you're a beginner to online trading, it's a great idea to spend some time getting to know the features of the trading platform and explore its features before you begin trading. This way, you can make use of all the tools available at your disposal.

Here's a list of documents that are required to open a trading account -

• Identity proof (PAN card with a valid photograph)
• Address proof (Ration card, voter ID card, passport, Aadhar card, telephone bill (only landline), electricity bill)
• Proof of bank account
• Income proof (photocopy of ITR, net worth certificate by chartered account, salary proof, current bank account statement)
• Bank account statement/passbook/gas bill

Individuals

• Resident individuals
• NRIs
• Minors

Non-individuals

• Corporate
• Partnership firms
• Registered/unregistered trust
• Registered/unregistered society
• Association of Persons (AOP)
• Bank
• Mutual Funds
• LLP (Limited Liability Partnership)
• FII/FPI (Only trading account)

Here're the following steps that you need to follow to close a trading account:

• Inform the brokerage company or depository participant you had opened your account with.
• The next step is to fill an account closure form.
• In the account closure form, you need to mention the reason for closing your trading account
• Once you have filled your account closure form, you need to submit it to your DP.
• Your account will be closed once your request is approved.

Through trading account, investors can trade in securities like equities, futures, and options. Not just equities, currency derivatives can also be traded through a trading account.

No. Trading account cannot be opened in the name of a minor. Usually, brokerage firms combine both trading and demat account into one comprehensive account. Also as per financial law, opening a trading account in the name of a minor is prohibited.

There are various kinds of trading account in India -

• Equity trading account
• Commodity trading account
• Online and offline trading accounts
• 2-in-1 account and 3-in-1 account
• Discount and full-service trading accounts

India has been moving towards a cashless economy. The government is actively pushing digital forms of transactions in the country. Digital modes of transactions are faster, secure and more cost-efficient. If one traces the origin of the digital revolution in the financial sector of the country, the search may end at the capital markets. The stock markets had migrated from physical to electronic mode of trading in 1996. The introduction of the Depositories Act 1996, led to the dematerialisation of shares.

Before the conversion of physical certificates into an electronic form, the stock markets operated on an open outcry system. Traders communicated verbally and through gestures to buy and sell shares. With the advent of electronic trading, investors do not have to be present at the stock exchanges and a simple online command is enough to execute a trade. However, certain tools are a prerequisite for electronic trading. You need to have a demat account, trading account and bank account to access the capital markets.

All the three accounts are linked and work in tandem with each other. The bank account is used to store cash which is used to trade in securities. The demat account is hosted by depositories and is used to store the different kinds of securities bought by the investor. But when you have to sell your holdings or buy new securities, you will have to use a trading account. The trading account is essentially an interface between the demat account and the investor. It is not possible to buy or sell a unit of security without a trading account. The trading account has replaced the open outcry system prevalent in earlier times. Now, you just have to place the order through the trading account and the request is forwarded to the stock exchanges. Upon the completion of the transaction, the securities are deposited in the demat account and the required amount is deducted from the bank account.

A trading account is not limited to stocks. There are trading accounts for currencies, commodities, bonds, gold and exchange-traded funds. There are several benefits of an online trading account. The biggest benefit is that you can open trading accounts online and do not need to visit a bank or the office of the broker. Trading accounts provide one-point access unlike physical trading.

Through a single trading account, you can access stock exchanges like BSE and the National Stock Exchange and commodity exchanges like Multi-Commodity Exchange and National Commodity and Derivatives Exchange. Open trading accounts online to get the flexibility to trade through multiple mediums. With a trading account you can trade through mobile, desktop or through a call.

Opening a trading account online opens up a host of investing possibilities. You must be wondering how to open a trading account. You can open a trading account in a few simple steps.

• In the first step, choose a brokerage firm to open a trading account. Conduct thorough research and opt for a credible brokerage firm. Take the various charges levied by brokerages, the interface of the trading platform and the value-added services into account before finalising a brokerage.
• After zeroing in on the broker, get in touch with and enquire about the trading account opening procedure. The brokerage will require you to fill up an account opening form and a Know Your Customer form. A representative from the brokerage firm will assist you with the process. Most brokerages offer a demat-cum-trading account as a demat account is mandatory to store the securities.
• Along with the forms, you will have to submit identity proof, residence proof and in some cases proof of income. A photocopy of the Aadhar card or passport, besides several other documents can be used as proof of residence. Similarly, a copy of an Aadhar card or PAN card can be used as identity proof. The PAN card is compulsory to open a trading account.
• Post submission of the documents, the brokerage will conduct a manual Know Your Customer verification. A representative may visit your house to verify the documents or you may be asked to verify the documents over the phone.
• If you do not want to manually verify the documents, you can opt for the e-KYC process. For the e-KYC process, you will have to ensure that your PAN card is linked to the Aadhar card and your bank account. The mobile number submitted in the account opening form should be the same as the Aadhar card for the e-KYC process.
• It generally takes 3-4 days to activate the trading account after the completion of the verification process.

Chris Wealth Management Securities is one of the oldest and the most credible names in the market. Opening a trading account with Chris Wealth Management Securities can provide you a host of benefits.

• The company offers paperless account opening option improving customer convenience.
• Successful investing is a result of informed decisions based on reliable information. Along with the facility to buy and sell securities, you also get access to reliable financial data and research reports with the Chris Wealth Management Demat and Trading account.
• The requirement for different categories of investors varies. A day trader may need low brokerage rates, but a long-term investor may not be concerned with brokerage fees. Chris Wealth Management Securities provides an option of three brokerage plans to choose from.
• The company has an extensive network of over 4000 branches across India.
• It also gives the investors an edge with its five next-generation trading platforms. With Chris Wealth Management Securities, you do not have to worry about asset classes as it facilitates trading in all segments such as equity, derivatives, commodity, currency and mutual funds.

Chris Wealth Management has developed various trading platforms to suit the needs of different types of investors. Some investors need different types of charts and financial data, while some investors need just research reports. Depending on the level of investor's sophistication, Chris Wealth Management offers five different next generation platforms.

Chris Wealth Management Markets:

• One of the simplest trading apps available in the country. The Chris Wealth Management Markets platform has been awarded on multiple occasions. It provides a simple interface with live prices, customisable watchlist and an advanced dashboard.

TT Iris:

• It has been developed in collaboration with Spider Software and helps you track important market movements and conduct real-time analysis. The TT Iris platform provides advanced charting and technical analysis tools.

Chris Wealth Management MF App:

• You can invest in mutual funds and track MF investments through the Chris Wealth Management MF App. The app has a paperless registration process and you can also receive suggestions through the platform.

Along with the Chris Wealth Management Markets, Chris Wealth Management MF and TT Iris, Chris Wealth Management has also developed the TT Web and the TTExe platforms.

Chris Wealth Management Securities has three equity brokerage plans catering to different types of investors.

• Variable Brokerage Plan:

  The brokerage under the variable brokerage plan depends on the monthly volume of the investor. Investors with higher volumes get lower brokerage rates. In the delivery cash segment, the brokerage for a monthly turnover of less than Rs 1 lakh is 0.60%, while for a turnover of over Rs 2 crores, the brokerage is 0.15%. There are various turnover slabs between Rs 1 lakh and Rs 200 lakh.

• Flat brokerage charge:

  The brokerage is charged at a flat rate, irrespective if the monthly turnover, under the flat brokerage plan. The brokerage for delivery trades is 0.50% of the transaction. The brokerage for intraday trades is 0.05% on both buy and sell transactions.

• Value-added subscription plan:

  The value-added subscription plan has been designed for frequent traders. There are 7 different subscription plans under the model. You can pay an amount and avail lower brokerage charges for a specified period of time. For instance, under the Rs 5000 plan or V5000VAS, the brokerage for delivery trades reduces to 0.35% as against 0.50% in the default plan.

With a trading account from Chris Wealth Management Securities, you can invest in the commodities and currency markets

Yes, you can trade in the derivatives market with an Chris Wealth Management trading account.

Chris Wealth Management is a full-service broker and provides high-quality research and other financial data to investors. Discount brokers just provide buying and selling services.

With an Chris Wealth Management demat and trading account, you can invest in mutual funds along with stocks, currencies and commodities. Chris Wealth Management has developed a dedicated platform Chris Wealth Management MF App for mutual fund investments.

If you are trading in the cash delivery system, you will be charged a minimum of Rs 25 per scrip under the variable brokerage and flat brokerage plans.

With Chris Wealth Management, you do not have to worry about opening a separate demat account. Chris Wealth Management offers demat-cum-trading account which eliminates the need to search for a demat account provider.

Yes, you can invest in IPOs and FPOs through an Chris Wealth Management demat-cum-trading account.

With Chris Wealth Management, you can rest assured of getting access to high-quality research reports. A team of professional analysts prepares the reports which lead to rewarding stock recommendations.

Much like a Demat account, a trading account in India is essential to sell or purchase shares online on the stock market. Earlier on, the open outcry system was how the stock market functioned. Traders had to be physically present, and use verbal communication and hand-signals, likened to bidding for a share, to convey their trading decisions. Once the digital age came around, this system was replaced with the current trading accounts.

Today, traders and investors simply create an online trading account. Investors are usually required to enlist the help of a professional stockbroker to carry out their buying and selling decisions for them. While there are exceptions, brokerage firms rarely offer free trading accounts as there are maintenance and opening charges.

Due to easy accessibility via the internet, many people have jumped onto the stock market bandwagon. Around 22.5 million people with a trading account in India were partaking in the stock market in 2016. To manage this global influx of new traders, each trader is allotted a unique trading ID, which helps to individually identify traders and their transactions.

Stock markets are open for certain hours during the day during which the market can be seen and trades can be carried out. These are known as trading hours. There are various strategies to employ when trading. These include buying and selling a share on the same day (intraday trading) or holding onto a share until it starts to trend and then immediately selling it at a profitable margin.

Similar to other full-service brokerage firms, Chris Wealth Management does not offer free trading accounts. However, it charges nominal fees for opening and maintaining a trading account. Here are the general charges to run a trading account with Chris Wealth Management.

Chris Wealth Management offers the Zero Brokerage Plan. Here's how this plan works.

Without access to a quality trading platform, your trades can get tedious and difficult to manage, ultimately resulting in losses. On the other hand, using a good trading platform can improve your trading skills. India Infoline (Chris Wealth Management) offers its users a host of advanced and innovative trading platforms that perform with state-of-the-art technology. When you open an online trading account on Chris Wealth Management, you get access to the following cutting edge trading tools and platforms.

• TTWeb:

  a browser-friendly easy-to-operate trading portal that utilizes the internet. One can trade from the convenience of their home using TTWeb, with a quick login requiring a password and User ID.

• TTExe:

  a PC-friendly installable desktop application, accessing all segments, that is suited to fast and high-frequency trading. All features like advanced charts, trading tips, live streaming market movements, daily reports are available on TTExe and TTWeb.

• Chris Wealth Management Markets:

  a smartphone app for Android and iOS that helps you trade using your smartphone. For a smartphone app, it has impressive features like trading tips, a customizable watchlist, price alerts, advanced technical charting, and access to live market updates. Mobile-based trading comprised 18.51% of all trades in the cash market in January 2020, while internet-based trading came in at 11.29%, reflecting how apps like Chris Wealth Management Markets are a convenient trading solution for most.

• Chris Wealth Management MF App:

  for those who prefer investing in Mutual Funds only, this app is dedicated to trading and tracking MFs alone. Other features include integration with the Share Market app, portfolio assessment, and sharing relevant industry news.

Operating a trading account in India offers some special features and benefits to users. They are:

• Convenient Access:

  With a trading account in India, you are able to reach a variety of exchanges trading in commodities and securities. You have access to leading exchanges like Bombay Stock Exchange (BSE), National Stock Exchange (NSE), Multi Commodity Exchange (MCX) and National Commodity and Derivatives Exchange (NCDEX). You are spoilt for choice with access to all these trading options and generating wealth is a simple click away.

• Smart Tools:

  Online trading accounts offer benefits that open outcry system never could. These smart tools are daily reports, strategy builders, investment advisory services, reports, and advanced charts. Due to most of these tools being software-based, the scope for reporting-error is also low. Such reliable information allows for informed trading decisions.

• Customization:

  Another benefit of the online trading accounts of today is the ability to tailor them to suit your needs. Whether it is customizing the watchlists of stocks you want to track, creating individualized charts to gain insight into market movements, or setting stock market notification alerts to SMS-only, you can manage your trading accounts to fit your lifestyle without any friction.

• Flexibility:

  Another aspect of having a trading account in India is how easily accessible they are from different portals. Smartphones, desktops, and browser-based trading portals are typical offerings across brokerage firms today. Some firms go the extra mile and create apps dedicated to Mutual Funds, or smallcases only. This variety enables one to flexibly access the market without worrying about requiring a PC.

• Seamless Transitions:

  If there's one feature that characterizes online trading accounts, it is how seamless transactions are thanks to it. Funds transfer within less than 24 hours allowing for more transactions. Advanced technology enables traders today to buy and sell stocks within the same day, popularly known as intraday trading.

Yes, you can trade in the derivatives market with an Chris Wealth Management trading account.

Chris Wealth Management is a full-service broker and provides high-quality research and other financial data to investors. Discount brokers usually just provide buying and selling services.

With both, an Chris Wealth Management demat and trading account, you can invest in mutual funds along with stocks, currencies and commodities. Chris Wealth Management has also developed a dedicated platform Chris Wealth Management MF App for mutual fund investments.

Yes, you can invest in IPOs and FPOs through an Chris Wealth Management demat-cum-trading account.

The movement of people is a hallmark of the globalised world. People migrate to other countries in the search for better opportunities and contribute to their home country through remittances. Indians are one of the biggest expat communities in the world, working and living in multiple countries. At the end of 2018, over 31 million Non-Resident Indians and People of Indian Origin were estimated to be residing outside the country. Indians living outside the country remit billions of dollars every year back to the country. In 2018, Indians sent back $79 billion in remittances, which was highest among all countries.

As per the law, Indians working and earning in a foreign country are not allowed to transact through a normal savings account. A mechanism has been put into place to facilitate transactions of people living outside India. If you are an NRI or PIO earning in a foreign country and want to send the money back to India or save it in an Indian account, you will have to open an NRE or an NRO account.

Both the accounts have the same purpose-to help NRIs transact in India-but have different terms and conditions. An NRE or Non-Resident External account is used to keep money earned in foreign currency in rupee denomination. The money deposited in an NRE account is converted into Indian currency at the time of deposit. Since NRE accounts provide conversion facilities, you can deposit money in any currency and withdraw it in Indian rupees. NRE accounts are available in various formats based on the requirement of the account holder. You can open savings, current, recurring or a fixed deposit NRE account.

NRE accounts can be opened jointly, but the joint account holder should also be an NRI. A key point to focus while opening an NRE account is that the deposits are exposed to currency fluctuations. For instance, you deposit $ 1000 on January 2 2019. On the date, INR was trading at 69.99 against the dollar, so Rs 69,990 will be deposited in your NRE account. Now, suppose you choose to transfer the same amount a year later to your foreign account. On Jan 2, 2020, the INR was trading at Rs 71.33 against the dollar, so, you will get just $ 981 back. The situation changes if the INR strengthens against the dollar instead of weakening. The NRE account doesn't provide any protection against currency fluctuations.

Though NRE account deposits are exposed to currency fluctuations, they provide a host of benefits. The interest earned on the deposit in an NRE account is tax-exempt, which makes the interest as well as the principal amount tax-free. Depositors are free to fully repatriate any amount deposited in an NRE account. You can transfer the principal and the interest earned on it to any account outside India without any restrictions. An NRE account can be utilised for personal uses as well as for business purposes in India.

An NRE account is ideal for people who have only foreign income. But what if you also have income sources in India? You are not allowed to deposit money earned in India in the NRE account as it would lead to a tax-free transfer of money outside the country. To avoid the situation, the government has set up the NRE and NRO account mechanism. The Non-Resident Ordinary account or the NRO account is used to manage the income earned in India like dividends, rental income, pension, etc.

Just like an NRE account, you can also deposit foreign currency funds in the NRO account, but cannot withdraw in the foreign currency. A major difference between NRO and NRE accounts is the currency of withdrawal. An NRO account doesn't allow transferability of funds without restrictions. You can open a joint NRO account and it is not mandatory to have an NRI joint holder. Unlike an NRE account, the interest earned on the deposits in an NRO account is taxable at 30%, deductible at the source. The NRO doesn't allow free repatriability of funds and you can send up to $1 million in a year after paying the applicable taxes. The NRO account is ideal for people who have any Indian source of income.

The Indian government promotes investment from NRIs, but any capital coming from outside the country comes under the ambit of the Foreign Exchange Management Act (FEMA). NRIs have to follow the rules prescribed under FEMA while investing in India. As per the law, NRIs are allowed to invest in a host of assets like stocks, mutual funds and real estate. To access the capital markets, NRIs can either opt for the Portfolio Investment Scheme or the Direct Subscription Route.

The Portfolio Investment Scheme introduced by the Reserve Bank of India is the primary mode of investment for NRIs in the stock market of India. Through the scheme, NRIs can buy/sell stocks, debentures and other securities allowed by the RBI in India through a recognised stockbroker. The request for the portfolio investment scheme has to be routed through the designated branches of specified banks. NRIs have to choose between NRO NRE accounts while investing depending on the nature of the investment-repatriable or non-repatriable.

How do these Accounts Operate?

Even though there are certain differences between NRO and NRE accounts, their operation is similar. The choice between the NRE and NRO accounts depends on the requirements of the NRI. The question of choosing between NRE and NRO account arises when opting for a repatriable or non-repatriable investment. While investing in a financial product in India like mutual funds, NRIs have to indicate the method of investment.

If the payment method is repatriable, you have to opt for an NRE account as NRE account deposits are fully repatriable. If the payment method is non-repatriable, you have to choose an NRO account. During redemption of the investments, if the investment is not tax-exempt, the tax is deducted at source. If you want to repatriate the amount out of India after redemption, you should opt for NRE account before investing. NRIs have to maintain complete transparency while investing in India. The facility of redemption of capital invested and earned from India is only available to NRIs, and so, NRIs have to provide their overseas address while filling the NRI banking form.

The major differences between NRO and NRE accounts pertain to repatriation, taxability, fund deposit and withdrawal and transferability.

Both the NRE and NRO accounts serve different purposes. An NRE account allows easy repatriability and is primarily used to transfer income earned in foreign currency and maintain it in Indian currency. It can be used for savings or business purposes but becomes useless in the case of income from India. The NRO account is used to maintain funds generated from income sources in India like financial market investments and real estate investments.

If you have a source of income in India, you should opt for an NRO account as an NRE account will not serve your purpose. But if you just want to convert a part of foreign earnings into savings denominated in the Indian currency, the NRE account would be an ideal choice. The deposits in the NRE account will earn tax-free interest and there are no restrictions on repatriation.

NRIs are allowed to invest in various asset classes in India, but the regulations can be confusing. India Infoline provides a host of tailor-made facilities for NRIs to trade and invest in India. It is important to choose a reputed financial institution with a proven track record to successfully invest in India. With India Infoline, NRIs get a wide variety of investment options in India. The company provides dedicated relationship managers to help NRIs at every step. One of the biggest NRI account benefits with India Infoline is that the account can be opened online through video verification.

India Infoline has designed various tools and platforms to ease the investment process for NRIs. Major NRI-focused tools are NRI Trading account, NRI Demat account, NRI Bank account and NRI custodial account. The NRI trading account is used for buying and selling of securities just like a regular trading account. The NRI demat account is used to store the securities bought through the trading account. Under the NRI bank account, NRIs can opt to open an NRE or NRO account as per their requirements. The NRI custodial account is meant for NRI who wish to trade in equity futures and options segment.

The Indian government provides a host of benefits to NRI investors. The labyrinth of rules and regulations should not stop you from accessing the Indian capital markets. With the variety of NRI investing tools offered by India Infoline, you can have a rewarding investing journey in India

Yes, those students who have gone overseas for higher education and continues to stay abroad can have a Non-Resident External (NRE) or a Non-Resident Ordinary (NRO) account.

List of documents required for opening an NRE and NRO account -

• Identity proof (Copy of PAN, passport)
• NRI status proof (Copy of visa, work permit, PIO, OCI)
• Proof of residence abroad
• Indian address proof
• Cancelled cheque
• PIS permission letter

To open an NRE or NRO account in India, the citizen needs to have lived outside India for 120 days or more. In addition to this, they have spent less than four years of the last 10 years living outside India.

Both NRE and NRO accounts serve varied purposes of an NRI. Thus, you must choose the one that best suits your financial needs. An NRE or Non-Resident External (NRE) account is a bank account opened by an NRI to deposit their foreign exchanges in India. On the other hand, a Non-Resident Ordinary (NRO) account can be used by NRIs to park the money earned in India. So, if you have an income source in India, go for an NRO account. While those who want to hold their overseas earnings in Indian currency, opt for an NRE account. Each stands mighty in its own terms.

Funds originating in India i.e. in Indian Rupees or INR can be deposited only in NRO Accounts and not an NRE Account. However, funds originating from a foreign country (foreign currency) can be deposited in both NRE and NRO accounts.

If you want to participate in an Initial Public Offering (IPO), purchase shares, and start trading in stock markets, one of the first requirements is to have an online Demat Account. A Demat or dematerialised account holds your shares and securities in the electronic format. Similar to a bank account, your Demat Account holds the record of the sales and purchases of your shares.

• Any investment made in equity shares in the physical form is cumbersome and entails a lot of paperwork. You might even run the risk of receiving fake shares.
• To prevent any discrepancy, and to streamline the process of online trading, the shares are converted into the electronic format.
• This improves the accessibility of your shares and securities, which, in turn, means they can easily be traded. After you open a Demat account, you can keep your shares safely.

• Suppose you participate in an IPO, and purchase certain shares, you still have to open a Demat Account. If someone wants to give/gift you shares, then again you require an online Demat Account.
• Here, you must understand that a Demat Account just holds your shares or securities. To begin trading in stock markets, you require a trading account and a bank account. For instance, after you open a Demat Account, and want to trade, you can make the necessary purchase orders through your trading account. After the order is processed in the stock market, the shares will be transferred in your Demat Account, while the necessary charges, or the cost of purchase, will be deducted from your bank account.
• If you just want to hold the shares, then you do not require any other accounts other than a Demat Account.

You can hold a wide variety of investments in your Demat Account. These are:

• Equity shares
• Exchange traded funds
• Mutual Funds
• Bonds
• Government securities

You can open a Demat Account without actually possessing any shares. Just like some savings bank accounts, you are allowed to maintain a zero balance in your Demat Account.

Here is a look at the advantages of a Demat Account:

Transfer your shares:

You can easily use your Demat Account for transferring your shares. All you require is a Delivery Instruction Slip (DIS), where you have to provide the requisite details.

Loan facility:

Your Demat Account can also get you a variety of loans from banks. All you need is to pledge the securities in your Demat Account as collateral.

Dematerialisation and rematerialisation :

If you have an online Demat Account,then you can convert your shares from the physical to electronic form (dematerialisation), or from the electronic form to physical form (rematerialisation), depending upon exigencies of the situation. All you need is to provide your Depository Participant (DP) with the necessary instruction.

Easy accessibility:

Because your account is digital, it can be easily accessed from a slew of devices like computer, laptop, tablet or smartphone. You can use any of the devices to conduct any operations like investing, trading and monitoring.

Corporate benefits:

A Demat Account helps you get corporate benefits. If you hold securities, and the company provides dividends , interests or refunds, these will automatically accrue in your account.

• Select a Depository Participant of your choice.
• Fill the account opening form, and provide the requisite documents, including PAN card.
• You will receive a copy of the rules and regulations along with the terms of agreement, and the charges you need to pay.
• Now the process of in-person verification will begin, where an agent of the DP will verify your details.
• Post-verification, your application will be processed, and you will receive an account or client ID number.
• Now you can start using your online Demat Account.

Thus, having a Demat Account is of paramount importance if you want to hold shares or securities, and start trading in stock markets. All you need to do is open an online Demat Account with a trusted partner who can provide a smooth platform to open your account, besides providing cutting-edge data and analysis to help you stay ahead in the journey of stock trading. Opting for a 2-in-1 Demat-cum-Trading account is ideal to facilitate the easy buying and selling of shares.

Taxpayers have to pay taxes regularly according to their tax bracket slabs. The first step is to file your annual returns, and then verify it. Earlier, the verification process was tedious, with the requirement of sending the Income Tax Returns - Verification (ITR-V) through the post to the Central Processing Centre (CPC), Bengaluru. In the present digital age, verification has become convenient and hassle-free, with the Income Tax department introducing digital/ electronic methods of verification. As a taxpayer, you can now use these platforms to electronically verify (e-verify) your returns.

You can now e-verify through:

• Your Demat Account
• Aadhar
• Net banking
• Bank Account
• ATM card

If you wish to e-verify using your online Demat Account, you need to follow the steps given below:

• Step 1: Register as a user by opening an account in the Income Tax department's web portal: https://incometaxindiaefiling.gov.in/ You must remember that your Permanent Account Number (PAN) will be your user ID, and you can select a password of your choice, while registering. Then log in to the portal.
• Step 2: Now select the options of your account, and viewing returns.
• Step 3: You can now see on your screen various sub-heads like ITR/Form of different financial years, filing type, acknowledgment number, PAN, the status of your returns and the option to view the returns pending for e-verification. You must now select the option to e-verify.
• Step 4: You will now get the options for generating Electronic Verification Code (EVC) through your Demat Account, bank account number, and net banking. You have to select the option to e-verify through Demat Account.
• Step 5: Now you are required to prevalidate your account. Select the option to prevalidate your Demat Account.
• Step 6: You will now get the option to select the depository type, either National Securities Depositories Ltd (NSDL), or Central Securities Depositories Ltd (CSDL). According to your selection, you will be then asked to provide details including, Demat Account number, Depository Particaipant's (DPs) ID, client's ID, your phone number and email address. After completing the process, select the option to prevalidate.
• Step 7: Now you will be asked whether you want to generate EVC through your verified mobile number. After confirming, you will receive an EVC on your phone number.
• Step 8: You are now required to submit the Electronic Verification Number. Here, you must remember that EVC is a 10-digit code, which remains valid for up to 72 hours. EVC is unique to your PAN, and can be generated only once. If any modifications have to be made, you have to start afresh for e-verification and regenerate a new EVC.
• Step 9: You will receive an acknowledgment that your return has been e-verified. You will also be notified about the successful e-verification of returns via your Demat Account through an email.

The mere filing of returns is not proof of having fulfilled your obligation to pay taxes. Filing of returns is the first step towards making tax payments. To complete the process, you need to verify your returns, within 120 days of filing ITR.

According to the Income Tax department's rules, electronic verification of your returns is not mandatory. You can still send a physical copy of ITR-V via post to CPC, Bengaluru.

Now you can use your online Demat Account, not only to trade in stocks and securities but also e-verify your ITR returns. Using this method of e-verification has several benefits:

• Hassle-free and convenient: Using your Demat Account for e-verification is a paperless process, which can be finished within minutes. You don't need to do cumbersome paperwork, like downloading, signing and posting the physical copy of your ITR.
• Quick processing: While the whole procedure of sending ITR forms physically, and its subsequent processing by the Income Tax department will take days, e-verification through your Demat Account will be processed quickly. Refunds, if any, will also be transferred quickly to your account.
• Safe: E-verification of ITR through your online Demat Account ensures confidentiality. The digital platform has multiple levels of protection. There is no risk of your ITR being lost in transit.

Thus, you can use your online Demat Account to e-verify your ITR. You must always remember to open a Demat Account and Trading Account with a trusted and reliable broker. Chris Wealth Management offers one of the best Demat and Trading Accounts, along with the unbeatable feature of an all-in-one trading platform. You also get access to cutting-edge research, with best stock recommendations.

If you want to invest in stock markets, there are a few fundamentals that you should be aware of. For trading in stock markets, there are two prerequisites: You should have a Demat Account and a Trading Account. Unless you understand the basic concepts of both the accounts, you will not be able to invest in stocks and securities.

A Demat account is an account where you hold your shares in the electronic format. It is also called Dematerialised account as the physical shares are converted here in the electronic format. Once you open an online Demat Account, you will be provided with a Demat Account number. You have to quote this number while conducting the sale or purchase of stocks. The functioning of this account is similar to that of a bank account, where you have the option to deposit and withdraw money. Here too, the securities are debited and credited as per your sale and purchase.

Read on to understand the fundamentals of the two accounts.

• Zero balance account: You don't need to compulsorily have shares to open a Demat Account. In fact, you can have zero balance in the account.
• Opening a Demat Account: You cannot open a Demat Account directly with the Central Depository Services Ltd (CDSL). You have to approach an authorized Depository Participant (DP), who will open your account, and facilitate further transactions.
• Multiple accounts: As there is no restriction on the number of Demat Accounts which can be opened by any investor, you can have multiple Demat Accounts.
• Zero Account opening charges: As per SEBIs rules, no charges are levied for opening a Demat Account. You, however, are required to pay Annual Maintenance Charge (AMC).
• Number of account holders: You can either open a single or joint Demat Account. One account can have a maximum of three people, with one main holder and two joint holders. You must, however, remember that once an account is opened, any modification of names is not allowed.

The second step for investing in stock markets is to open a trading account. You can trade electronically in the listed shares of a stock exchange through your Trading Account. This account allows you to purchase and sell securities through your Demat Account. A trading account is similar to a current bank account as it links your Demat and Bank Account. For example, if you have to sell shares, your trading account will withdraw it from your Demat Account, and the corresponding price received on the sale will be credited in your bank account.

• Opening a trading account: You can open a trading account by registering with a firm or stock broking company. Once you open a trading account, you are assigned a unique trading ID to commence trading in stock markets.
• Fees and charges: You are not required to pay any charges to open a trading account. It is only while trading that you are required to pay charges like GST, stamp duty and brokerage.
• Allows trading on multiple stock markets: Once you open a trading account, you can trade in shares, derivatives, and futures in all stock markets, including National Stock Exchange (NSE), Bombay Stock Exchange (BSE), National Commodity and Derivatives Exchange (NCDEX) and Multi Commodity Exchange (MCX).
• T+1, T+2, and T+3 in Trading Accounts: T means the trading day, and T+1 is the next trading day, and so on.

You can have a Demat Account without a Trading Account if you just want to keep stocks in your account. It is only when you want to trade that opening a trading account becomes mandatory.

If you want to trade only in futures, options and currency derivatives, then you don't require a Demat Account.

If you want to trade in stock markets, then having both Trading Account and Demat Account is mandatory. You must always remember to select only a trusted financial partner offering all investment options through a single platform. Along with the facility to invest in options like equities, commodities, Mutual Funds, IPOs and currency services through a single online Demat Account, a trusted financial partner will offer you the industry's best stock and scheme recommendations.

A minor Demat account is an account opened by a parent, or a legal guardian, in the name of a minor. In India, a minor is defined as an individual below 18 years of age.

A minor Demat account for their children can help parents solve a lot of problems in one stroke. Below are some of the problems that a minor Demat account can help solve:

Planning your child's future expenses:

A parent is beset by many expenses from all sides. From medical expenses for your toddler to their pre-school fees, you may constantly need to juggle your finances. Parents also need to prepare finances for their child's higher education and their wedding. However, it can become difficult to develop an alternate corpus for your children that is separate from other funds. A minor Demat account helps you draw a clean line around the funds which are only meant for your children's education, wedding funds, relocation for jobs, and other expenses.

Financial literacy for your kids:

Reports have found that financial literacy rates in India, at a bare 24% of the total population, is very low compared to the rest of the world. Having a Demat account registered in your child's name will help them understand the basics of savings and investment from an early age. This will contribute to a holistic understanding of capital when they grow up. This understanding will help them plan their expenses and grow their wealth better.

Minor's PAN card required -

The Permanent Account Number of the minor needs to be submitted with the application to open a Demat account in their name. This is a mandatory requirement. The government has also announced recently that the PAN card will be "inoperative" if it is not linked with the AADHAR card by 31st March. In the light of this announcement, both the minor's PAN card and the AADHAR card need to be made and interlinked before registering for a Demat account in the minor's name.

Other documents that are needed -

Permanent address proof and identity proof need to be submitted alongside the PAN card.

Two KYCs need to be submitted -

When registering a demat account in a minor's name, two Know Your Customer(KYC) documents need to be submitted. The KYC for the minor collects basic information. The KYC of the guardian collects personal details, bank account details, and an annual salary range. Financial institutions seek this information as the guardian responsible for the child has the authority to open, handle, and close the Demat account.

Reason for opening the Demat Account -

The reason for opening the demat account in the minor's name must be stated before the account is issued. This reason needs to be stated in writing. Most institutions accept an email from the guardian as written proof as well.

Since the Demat account is registered in the name of a minor, there are certain restrictions. The important restrictions are given below:

Only equity trading is permitted -

The minor's guardian cannot do intraday trading using the minor's trading account. This is because the intraday trading market has greater levels of volatility. Further, financial derivatives like futures and options cannot be traded using a minor Demat account either. Only equities can be bought and sold using a minor's Demat account

Can't open a trading account in the minor's name -

Brokerage firms usually combine trading and Demat accounts into one comprehensive account. The financial law of the land, however, prohibits trading accounts to be opened in the name of minors.

No joint accounts in minor's name -

A minor cannot be the joint holder of a Demat account. This is because a Demat account for adults and a Demat account for minors have different registration processes. This is also due to the fact that different regulations apply to Demat accounts for minors and Demat accounts for adults.

Your child's Demat account can be used to grow, and keep track of, funds for their future education needs and other expenses.

The child will also grow up with a greater awareness of the ins and outs of saving and investing money. This financial literacy can be your child's big competitive edge when he or she grows up. In India, close to 76% of people surveyed for a study showed a poor grasp of the basics of finance. In contrast to this, a child who grows up with an online Demat account will become familiar, from an early age, with the strategies to manage and grow wealth.

From the outside, investing in the stock market may seem like a stress-free side hustle. However, first-time investors often find that the truth is far from this myth. Investing takes time, effort and patience.

Investing in the stock market can be a tricky game, and if you're not careful, you may make some grave investment mistakes that could cost you a lot of money. First-time investors are habitually too eager to jump right into the investment game, and quite often, do not commit to learning from the mistakes of others. Fortunately, by taking the time to get to know the common investment mistakes most investors and traders are prone to, you can ensure that you avoid making those costly errors.

Here's a quick look at 5 common investment mistakes first-time investors are often guilty of.

Seasoned investors tend to have a plan based on facts and figures. First-time investors, however, often give into the guessing game and blindly invest in stocks that appear to be performing well. The downside to not having a proper plan in place is that you have no end goal, and as a result, your investment pattern can be quite erratic. This, in turn, could turn you into a reckless investor, resulting in greater losses if you're not careful.

How to avoid this mistake:

The simplest way to keep yourself from making this investment mistake is to take some time to chart out a financial plan before you begin investing. Identify your goals and pick a strategy. Look into the financial data of companies you plan to invest in, and make informed decisions as opposed to blind guesses.

Beginners trading in equity are prone to allowing personal bias to drive their investment decisions. For instance, many first-time investors tend to either only buy companies they know or companies they like.

This is clearly not the best way to go about investing or trading in equity, because companies you know or like may not always be the ideal investment options for your risk profile or your financial goals.

How to avoid this mistake:

One way to avoid allowing personal bias to rule your investment decisions is to focus on research and obtain financial information about the companies that you're interested in. Research-based investing can help you overcome any bias you may possess, so you can make unprejudiced and informed trade decisions.

Beginners also tend to hold stocks and financial assets even when they're not performing well. If a stock's value is plummeting, many first-time investors and amateur traders are prone to refraining from selling the asset in the hope that its value would shoot back up in due time. In most cases, this may never happen, leaving investors with significant losses that could erode their capital greatly.

How to avoid this mistake:

You could set a limit for losses, beyond which you will have to sell off a loss-making stock, thus limiting your capital erosion. Many trading platforms like the ones offered by Chris Wealth Management come with a specific stop-loss feature exclusively for this purpose, so you can set a specified price at which to sell your loss-making stock.

The idea that investing in financial assets or trading in equity can make you get rich quickly can often limit your focus to the near future alone. This stops you from thinking about the long-term effect of your investment decisions. And that could be extremely damaging to your financial future. To make steep profits in a short period, many first-time investors make rash and uninformed decisions. And these are more likely to result in losses.

How to avoid this mistake:

Write out your short-term goals and your long-term goals, and make a plan for the future. Pick an investment strategy that includes pointers and guides for the long run. Additionally, ensure that you have at least some investments in your portfolio that you plan to hold for 5 to 10 years, at the very least. This could maximize your returns greatly.

Failure to diversify your portfolio can also cost you significantly in the long run. Diversification is important because it helps you balance risky assets against more stable options. This way, your capital doesn't stand the possibility of being eroded entirely. Investing solely in any one class of assets such as equity or commodities increases your risk by a significant amount. And even if you're a risk-friendly investor, it's not advisable to put all your money in one basket.

How to avoid this mistake:

The easiest way to avoid committing this investment mistake is to gradually build up your portfolio to include short-term and long-term investments. You also need a mix of high-risk and low-risk investments, so your risk exposure is distributed across your portfolio in a healthy manner.

These are among the most common mistakes first-time investors make when they trade in equity or purchase financial assets. It pays to remember that the assets linked to the financial markets may fluctuate in value. So, your best bet to make the most of these investments is to perform adequate research and make informed decisions grounded in facts as opposed to instinct or emotions.

Apart from these tips and tricks, there are a few more factors one would need to keep in mind before getting started. Before novice investors can begin to invest, they would, first and foremost, need to open a demat and trading account. Trading in equity and investing in the financial markets requires the use of a demat account and a trading account. It also requires you to link your online demat account with your trading account, so you can buy, hold, and sell your financial assets as per your investment strategy.

Armed with all the aforementioned knowledge and guidelines, you're now all set to begin investing.

Certificate of Deposit or CD is a fixed-income financial instrument governed under the Reserve Bank and India (RBI) issued in a dematerialized form. The amount at payout is assured from the beginning. A CD can be issued by any All-India Financial Institution or Scheduled Commercial Bank. They are issued at a discount provided on face value. Like a fixed deposit (FD), a CD's purpose is to denote in writing that you have deposited money in a bank for a fixed period and that bank will pay you interest on it based on the amount and duration of your deposit.

There is no major difference between a certificate of deposit and a fixed deposit. They are one and the same. Fixed deposits are even referred to as CDs or time deposits by certain banks. They come with the same term period, a minimum requirement for a deposit, and high-interest rates compared to traditional savings accounts. One difference is that CDs are freely negotiable while FDs are not.

Here are some salient features of CD's and how they compare to other financial instruments.

• CDs can be issued in India for a minimum deposit of 1 lakh and in subsequent multiples of it.
• Scheduled Commercial Banks (SCBs) and All-India Financial Institutions are eligible to issue a CD. Cooperative Banks and RRBs cannot issue a CD.
• CDs issued by SCBs have in term period anywhere between 3 months to a year.
• CDs issued by financial institutions have a term period ranging from 1-3 years.
• Similar to dematerialized securities, CDs in dematerialized forms are transferable through means of endorsement or delivery.
• There is no lock-in required for a CD.
• One cannot issue a loan against a CD.
• A certificate of deposit is fully taxable under the Income Tax Act.
• A CD cannot be publicly traded.
• Banks are not permitted to buy back a CD before its maturity.

There are two glaring differences between commercial paper and a CD. The first is who can issue them. A CD is issued by financial institutions and banks. Commercial papers are issued by primary dealers, large corporations and All-India Financial Institutions. The second difference is the minimum amount of deposit. A certificate of deposit requires a minimum investment of 1 lakh and thereafter permits multiples of it. A commercial paper, on the other hand, is issued for investments of at least 5 lakhs and in multiples of 5 lakh, thereafter.

CDs can be high-risk liabilities for any scheduled commercial bank. There are certain times where some banks are more likely to issue a CD compared to others. There can be boiled down to two factors:

• In case of both low deposit growth and high demand for credit.
• When there are stiff or tight liquidity conditions in the market signifying that cash is tied up in non-liquid assets.

*NRIs that have invested in a CD are not permitted to repatriate to their home country after the amount has matured.

CD There are benefits to issuing a CD which makes it such a popular choice among investors. They are:

• Security:

  A certificate of deposit or FD is not going to eat up your capital due to market volatility. It is a completely secure financial instrument with an assured sum at maturity, similar to traditional insurance. The money you put into your CD will continue to predictably increase and there is no risk of any loss. It is a very secure short to mid-term investment.

• High-Interest Rate:

  This benefit is what attracts most investors towards a CD. They offer larger rates of interest which can go as high as 7.8% on the lump sum deposited than traditional savings accounts whose interest rates average around 4%.

• Flexibility:

  You can opt for monthly payouts, annual payouts, or a lump sum withdrawal of your CD at maturity. You can pick the duration and price you want to invest, although it has to fit certain parameters set by the bank. Tailoring the CD to your needs helps you get the most from it.

• Low to Minimum Maintenance Costs:

  When it comes to the market there are always brokerage costs for the delivery, buying and selling of shares. There are usually no additional costs associated with a CD. You only pay what you invest with some banks.

Issuing a certificate of deposit is a secure way to invest in the short to medium term. Hopefully, this guide to CDs has shown you the eligibility, features, and benefits of fixed income instruments like CDs and why you should invest in them for your financially securing your future.

However, before you can proceed with your CD, you would first need to open a Demat account. Demat account is short for a dematerialized account. An online Demat account is required to hold dematerialized securities like a CD. You can open a Demat account with a few, simple, easy steps and be well on your way to procuring your first CD.

While most Indians have a bank account in some form or the other (such as savings bank accounts, or current bank account) there is lack of awareness about the benefits of having a Demat Account. As per data from SEBI, the total number of Demat accounts in India, as of 2018, was 38.4 million. While this is significant, compare this to the fact that over 80% of the Indian population have a savings or current account and you'll understand how DEMAT accounts are falling short.

One prime benefit of a Demat account is that it facilitates trading. In fact, the first step towards share trading is to open a Demat Account. Despite having an ardent wish to invest in share and securities, many people do not have an idea about the accounts you need to have to commence share trading. Understanding the many perks of Demat accounts could help turn things around.

• Before you start share trading, you have to open a Demat account with a Depository Participant (DP), which can be:
  • Banks
  • Brokerage firms
  • Financial institutions
• A Demat account is also known as Dematerialised account. Here, the physical shares and securities that you have purchased are converted or dematerialised, and kept in the electronic format.
• In the past, investors were given physical possession of shares. But, in 1996, the Securities Exchange Board of India (SEBI) passed a regulation that having a Demat Account is compulsory to trade in the stock markets. So, if you want to start trading in stock markets like Bombay Stock Exchange (BSE) or National Stock Exchange (NSE), having a Demat Account is a must.
• A Demat Account is similar to your bank account. Any time you make a sale or purchase, the number of shares is either debited or credited from your account.

Your online Demat Account can hold a wide variety of securities. Some of them are:

• Shares or stocks
• Initial Public Offering (IPO)
• Mutual Funds
• Government Bonds
• Non-convertible Debentures (NCDs)

There are manifold advantages of a Demat Account. Some of them include:

Easy accessibility:

You can easily access your online Demat Account through your smartphone, tablet or laptop and monitor your investments.

Easy dematerialization and rematerialization of securities:

You can easily convert any security from its physical form to the electronic format (dematerialization). If need be, they can again be converted to their physical form (rematerialization). You just need to instruct your DP.

Safety:

Opening a Demat account can prove to be the safe choice. Share certificates kept in the physical form can be subject to theft, loss or any potential damage. A Demat account helps mitigate such risks.

Helps facilitate the opening of your trading account:

While a Demat Account allows you to keep securities like shares in an electronic format, an online Trading Account helps you to engage in trading through this very account. In other words, you can purchase or sell securities through your online Trading Account. While trading in the stock market through the trading account, you have to compulsorily quote your Demat Account number.

Ease of carrying out transactions:

You need not visit the physical office of a company to buy or sell shares. At a click of the mouse, your transactions will be processed. If you are purchasing shares, once you place an order, the shares will be reflected in your Demat Account within two days.

Saving stamp duty:

According to SEBI regulations, there is no stamp duty on transfer of securities which are in the electronic format.

Easy money on the liquidation of shares:

Through your Demat Account, you can quickly receive money after selling shares.

Corporate benefits:

Stock dividends, interest and refunds are auto-credited in your online Demat Account.

Once you want to start trading in share markets, you require three types of accounts: A bank account, a Demat Account and a Trading Account.

When you make an order for sale or purchase after quoting your Demat Account number, the transaction will be carried out through your trading account. After the order is processed in the concerned stock exchange, the requisite money in your bank account will either be debited or credited.

Thus, it becomes imperative for every Indian to open a Demat Account, alongside a bank account. You can take advantage of the booming capital market to start your journey towards wealth creation by investing in equities, mutual funds, and commodities. Your first step should be to select a trusted financial partner, which would provide multiple benefits, like an intuitive trading platform along with a personalized portfolio analysis. You must also check whether the financial partner of your choice provides services of depositories, like NSDL and CDSL.

Playing the stock market right can prove to be very lucrative. It comes across as a complicated space, admittedly - however, here are the 4 stock market basics to help you get started right away.

Ambitious Indians are becoming more open to investing in the stock market. Although the numbers of those who trade are still limited to only 1% of the market, this still amounts to 300 million people. Most of them will have a delightful success story to share. Some people do so well and master the art so perfectly that they completely do away with their day jobs. You can jump on the stock trader bandwagon and pave your way to a richer future, provided you understand the necessities of doing business on the stock market. The first step to doing so is to understand in detail the basics of the stock market. Here, we give you the lowdown on everything stock market-related.

The first box you need to check from the list of stock market basics is a trading account. A trading account, as the name suggests, allows you to trade shares on the stock market. Whether you want to buy securities, buy futures & options (F&O) or make your money through intraday trading, the first thing you will need is a trading account. In addition to a trading account, you would also need to open a DEMAT account, in order to trade seamlessly and conveniently.

Choose your trading/depository partner (or the platform on which you open your demat and trading accounts) with care. Your partner should offer you competitive brokerage rates, back-end support, technical efficiency and expert advice. After all, like with any new endeavour, one would likely need a degree of hand-holding for a successful experience on the stock market.

Once you have opened your trading account, you are ready to begin trading. Before you place a buy order for any stocks, be sure to zero in on a stop loss. Simply put, a stop-loss specifies that a particular share should be sold once it breaches a predetermined limit.

Losses are an everyday reality on the stock market - it is imperative that you acknowledge and mitigate potential losses. A stop loss order, which you set with your broker before a buy or sell, minimizes your risk. A key differentiation is to be noted here: a stop loss does not avoid losses altogether but keeps risks within a limit that you deem sustainable.

It is similarly important to set a logical target price based on research of how the stocks prices have risen and fallen in the recent past.

For example, let's assume you have purchased shares at Rs 110 per share. You set your target price at 112 per share. You must acknowledge that the price can either rise to Rs 112 or more, or even dive to Rs 105 or less. As a result, you could set your stop loss at Rs 108. That way, should the stock price fall, you take a hit of only Rs 2 per share. Your broker will automatically sell your shares if the price dips to Rs 108.

To arrive at the right stop loss and target price, you will need to have a very precise understanding of how a given stock's price has performed during different times of day and on different days. Observing a stock for a few weeks before buying in is non-negotiable. Without this, you are going in blind.

Handpick a manageable basket of stocks and observe them on a daily basis. Be sure to pour over various technical charts and indicators. On the Chris Wealth Management website, you can browse, view and study these charts live, to arrive at well-informed trading decisions.

Additionally, allocate some time on a daily or at least on a weekly basis to scale up your know-how. Read articles and visit forums that give you stock advice and tips. Be sure to read the literature and expert guidance communication that comes in from your broker.

When there is a ton of profit to be reaped, even the best of us find it challenging to not get carried away. However, getting carried away while trading on the stock market can cost you actual money dearly. Before beginning, conduct research and experiments to test the waters.

If you choose to conduct an intraday trading experiment, to understand the workings of the market, choose a time of day that suits you. Once you have chosen a particular time of day, stay consistent to that time. The recommended time of day for beginners is said to be 9.30 to 10.30 am, when the stock prices show enough volatility (that means the prices are rising and falling enough to make profits) and relatively low risk.

Emotions are a big no-no when trading. You must rely on logic and researched facts and figures. Rein yourself in with regards to the following:

• Nobody can tell you that a given stock is most certainly going to perform in a predetermined manner. Make your decisions based on hard numbers and ignore rumours.
• Do not get self-indulgent and stay in the game after you have achieved your target price.
• Avoid being too conservative when setting a stop loss because that could also limit your potential to make profits.

: Now that you are savvy with the top four must-know concepts in stock market trading, you have understood the pillars of what contributes to making profits on the stock market. As a beginner, you will require disciplined efforts to witness earnings from trades. Daily dedication and unwavering attention to these stock market basics can make your money grow by leaps and bounds as a novice stock market player.

These days, Indian retail investors are looking beyond traditional investment assets like gold and real estate. Since 2016, the stock market has provided greater returns than gold and real estate. This has not escaped the attention of perceptive Indian investors. The easy accessibility of trading on the stock market with the help of a Trading account and Demat account online has also contributed to their inclination for investing in stocks.

Demat Accounts - i.e., Dematerialized Accounts - make it very convenient for the common man to electronically trade stocks, while digital trading accounts help investors buy and sell stocks quickly.

In 2018, 3.5 million Demat accounts were opened in India. This was the highest number on record ever since SEBI started releasing data in 2011. In 2019, the very next year, this record was overtaken - 4.1 million new Demat accounts were opened.

Some of the new entrants may open more than one Demat account in the beginning. Later on, such multiple account holders may need to move shares from one Demat account to another. There are many reasons for why they may need to do so, ranging from asset consolidation to shifting investment strategies. These reasons are explored in some detail below.

Why you may need to transfer shares from one demat account to another:

Consolidation:

In the beginning, people like to get a feel for the interface and services of different brokers. Later, they select a broker that best aligns with their financial goals and investment strategies, and carry out all future transactions through them. At such a time, it is recommended to move shares from the non-active Demat accounts to the active one. Keeping your assets in one place leads to better management and improved investments over time.

Changing Brokers:

There are two different types of brokers in India: discount brokers, and full-service brokers. Discount brokers charge very little fees, and provide the minimal service of facilitating the buying and selling of shares. Full-service brokers charge higher fees, but provide more resources like personalized recommendations, real-time market research, industry analyses, etc. A change in your investment strategy may need you to shift from one type of broker to another, thereby requiring a transfer of shares from one demat account to another.

If you need to move shares from one Demat account to another, you need to know about depository systems. In India, there are two depository systems:

• National Securities Depository Limited (NSDL)
• Central Depository Services Limited (CDSL)

This mode of transfer involves filling physical forms. If the two Demat accounts in question are in the same depository, then the shares do not circulate back in the market. This is why such a transfer is called off-market, or Intra-depository transfer. If the two Demat accounts are in separate depositories, then the transfer is called an Inter-depository market. An account holder needs to follow the following steps to carry out either of these transfers:

• This mode of transfer involves filling physical forms. If the two Demat accounts in question are in the same depository, then the shares do not circulate back in the market. This is why such a transfer is called off-market, or Intra-depository transfer. If the two Demat accounts are in separate depositories, then the transfer is called an Inter-depository market. An account holder needs to follow the following steps to carry out either of these transfers:
• Collect a Debit Instruction Slip (or DIS booklet) from your depository participant(DP). This is the brokerage firm that your Demat account is registered with.
• Put down the names as well as the ISIN number of the equities, debts, stocks, etc that you need to move from one account to another. ISIN stands for International Securities Identification Number - it's a 12 digit code that is used to validate the identity of financial securities.
• Put in the Target Client ID, which is a 16 character code that combines the client's ID with the DP's ID.
• Select the mode of transfer. If both the DPs are registered with the same depository, then select Intra-Depository or Off-market transfer. If the DPs in question are registered with different depositories, then select Inter-Depository transfer.
• Submit the filled-in DIS form to your existing broker, and do not forget to get an acknowledgement receipt from the broker

That's it. The broker will process the transfer in 3 to 5 days.

Online Transfer:

People also have the option to transfer shares from one Demat account to another online. Follow the steps given below to transfer your shares from one account to another from the comfort of your home:

• Visit the CDSL website.
• Click on the register online link and fill-in the form that comes on the screen.
• After completing the form, click on "Print Form".
• This will initiate a transfer of the form to your Depository Participant(DP) in question.
• The DP will verify your form, and send a password to your registered email address.
• The password can then be used to register onto the myeasi (Electronic Access to Securities Information) platform, and the account holder can initiate a transfer of shares by themselves.

The transferring of shares from one account to another is, thus, a simple and easy process, once you have the above steps down pat.