Demat Account

A Demat Account, abbreviated for – Dematerialized Account is the first step to transact in the share market. This account is a common account that holds all your investment instruments like the stocks, bonds, government securities, mutual funds, money and other depositories. Many people get confused with the Trading account and the Demat Account. An online trading account is used to do trading, basically place buy and sell orders of stocks in the share market. On the other hand, a Demat Account is basically an electronic dematerialized account, where physical delivery of shares is not available. Demat Account is used as a bank where the stocks bought are placed in and stocks that are sold are taken from.


How to open a demat account?


Opening a Demat Account is as easy as it can get. One can open multiple Demat Accounts as per need and use. Below are the steps that guide to open a Demat Account. All you trading details will be associated with your Demat Account. When a purchase of stock, debentures or securities is made, your Demat Account will be credited. When you sell your shares, your account will be debited.

images showing steps

You can open a demat account with a Depository Participant (DP). You can choose the Depository participant of your choice from the list of DP’s available at CDSL and NSDL

images showing steps

You will have to fill up an account opening form, and submit address proof, identity proof with the same.

images showing steps

Upon agreement of the terms and conditions (rights and duties of the investor), the depository participant will open your demat account

images showing steps

Upon creation of the account, you will receive a unique demat account number. This number is also referred to as the beneficial owner identification number. Your demat account will be recognized with your demat account number.


Documents Required Opening Demat Account


Tax Proof PAN Card / IT Returns Statement
ID Proof Voter ID/ Aadhaar
Address Proof Phone Bill / Electricity Bill
Income Proof Bank Statement

Demat is an Account Which is Necessary to Buy or Sell Stocks

Single common account

Trading is made easier with a single common Demat Account for all trade related transactions. The single Demat Account eliminates issues of maintaining multiple paper documents. Risk of losing them too is brought down with electronic forms in Demat Account.

Buy & Sell Online

Investors can trade in shares, debentures and other investment instruments in the electronic form, as required by the market regulator Securities and Exchange Board of India (SEBI). The Demat Account is used for buying and selling shares online.

Automatic Updates

The Demat Account is inclusive of auto update feature, updating your account each time you transact. Irrespective of whether you transact in shares, debentures or bonds, your account details are shared automatically without you having to submit multiple times.


Ease of Trading

Demat Accounts are more convenient in terms of tracking performance and maintenance. A single account can be enough to view and manage all your investment instruments electronically. Demat Account makes online trading easier with electronic forms.

Cheap and Safe

As the paper work is reduced, the cost of trading is also brought down. Physical share certificates involved costs like stamp duty and odd. But with Demat Account, you can do trading using electronic forms, at lower costs and in a safe and secure environment.

Secure way of Trading

Trading is made easier with a single common Demat Account for all trade related transactions. The single Demat Account eliminates issues of maintaining multiple paper documents. Risk of losing them too is brought down with electronic forms in Demat Account.



History of the Demat Account


Initially, the Bombay Stock Exchange (BSE) traded in the traditional old way, where buy and sell of shares took place with the help of Physical Share certificates. The old method of trading was referred to as “Trading in the Ring”. The traders shouted the prices in which they wanted to buy or sell the shares, and all those who were interested would trade money in exchange of physical share certificates. With the growth of Indian stock market, maintaining transactions with the help of these share certificates became difficult. Huge amount of paper work and manually keeping a record of bought and sold stocks became impossible.

In the year 1996, share market evolved to using the digital technology to perform trading transactions electronically. The Demat Accounts were introduced where all physical share certificates were converted to electronic forms that initiated the dematerialization process. The shares holders held a Demat Account for themselves and all the forms related to trading were deposited electronically in their respective Demat Accounts.


What is the use of demat account?


Easy & Convenient

The Demat Account is the easiest and most convenient online trading platform to hold your securities, perform immediate transfer of securities and transact other investment instruments electronically.

No Stamp Duty

No stamp duty on transfer of securities. Safer than paper-shares (earlier risks associated with physical share certificates such as bad delivery, fake securities, Delays, thefts etc. are all eliminated).

Reduced Paperwork

As the trading transactions are managed electronically online, in a dematerialized account, the paperwork involved for transfer of securities, maintenance costs and transaction costs are reduced considerably.


No Odd Lot Problem

Even a single share can be sold or bought; there is no odd lot problem. With Demat Account; there is Automatic credit into the Account for shares arising out of bonus/split, consolidation merger, etc.

Depository Participants

Change in address once recorded with a DP (Depository participant) gets registered with all the companies in which investor holds securities eliminating the need to; correspond with each of them separately.

Trade Anywhere Anytime

Transmission of securities is done by the DP, without the need for notifying companies. A single Demat Account can hold investments in both equity and debt instruments. Traders can transact anytime, anywhere.



Watch Our Features In Action

  • "Aditya Trading Solutions is one of the most trusted financial companies I came across in south India. They give exceptional service and the research calls of ATS are very accurate when compared to any other trading companies. There are no hidden charges involved once you start you trading with them, and also they have the lowest brokerage charges for online trading. I would like to thank ATS and team, for helping me out with my trading transactions."

    Manish Agarwal

  • "Thanks to ATS and their team for understanding our trading requirements and fulfilling our demands. They showed 100% commitment and support every step of the way. I truly appreciate your expertise in the share market. The reports and intraday calls provided by their research team are highly reliable. I recommend this to every beginner who would like to start trading. I would suggest you to open a Demat Account with them as they offer the lowest brokerage charges compared to any other share brokers in India."

    Hari Ramakrishnan

  • "Big thanks to the research team of Aditya Trading Solutions. He was the one who took care of my trading account and Demat Account. ATS have one of the greatest trading research professionals. One many days he has supported me by assisting continuously for more than 4 hours. Communication with him was very easy. I would definitely refer about Aditya Share Brokers to all my friends and relatives. ATS is an excellent company, offering exceptional trading services."

    Raghu Das Gowda