S1 E7 : WHAT IS DEMAT ACCOUNT ? HOW TO OPEN IT
🤔 Imagine This:
You’re ready to buy your first share — maybe Tata Motors or Zomato.
You open a stock app and it says:
“Please complete your Demat account to start investing.”
You think:
“Wait… what is a Demat account? Why do I need it?”
Let’s explain it like a friend — step by step.
🏦 What is a Demat Account?
DEMAT = DEMaterialized Account
In simple words:
A Demat account is a digital locker where your shares are stored safely.
Before Demat accounts, shares were given as paper certificates (yes, actual paper!).
Now, everything is digital — like UPI for your shares.
If you buy 1 share of Reliance, it goes into your Demat account — just like money sits in your bank account.
🔄 How It Works:
Let’s compare it to your regular bank:
1. Bank Account
- It stores your money (💰).
- Linked to UPI or ATM for easy payments.
- Used for day-to-day transactions and necessary for making payments.
2. Demat Account
- It stores your shares (📈), not money.
- Linked to your Trading Account.
- Essential for buying, selling, and holding stocks when you invest.
You can’t buy or hold shares without a Demat account. It’s compulsory in India.
🧑💻 What’s a Trading Account Then?
A Trading Account is what you use to buy/sell the shares.
Here’s the flow:
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You use the Trading Account to place an order
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The Demat Account stores the share after buying
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Your Bank Account handles the money
All three work together — but you don’t need to open them separately.
Stock apps today give you all three in one setup.
✅ Step-by-Step: How to Open a Demat Account
You can do this in 10–15 minutes using just your phone.
📝 What You Need:
- PAN card (mandatory)
- Aadhaar card (linked to phone number for OTP)
- Bank account details (for fund transfers)
- A clear selfie (for ID verification)
📱 Best Apps to Open a Demat Account
All of these are SEBI-approved and beginner-friendly:
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Zerodha (Kite)
One of the most trusted platforms. It's fast, reliable, and known for low brokerage charges. Perfect for those who want a smooth experience.
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Groww
Very clean and simple user interface. Ideal for beginners who are just getting into stocks and mutual funds.
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Upstox
Offers a fast platform with lots of features. Great for those who want to explore more advanced options later.
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Angel One
Provides strong customer support and free research tools — perfect if you want guidance and data while making decisions.
You only need one to get started.
🚀 Steps Inside the App:
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Download the app (Zerodha/Groww/etc.)
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Tap “Open Account”
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Enter PAN and Aadhaar details
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Take a selfie when asked
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Upload a digital signature (you can draw with finger)
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Link your bank account
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Submit and wait — most accounts are verified in a few hours!
Once approved, you’re ready to buy your first share 🎉
🧠 Recap: Demat Basics in 6 Simple Points
✅ Demat Account = Digital locker for your shares
✅ Required to store shares (just like bank stores money)
✅ Paired with a Trading Account to place buy/sell orders
✅ Needed before you can invest
✅ Can be opened online using PAN, Aadhaar, and a selfie
✅ Apps like Zerodha, Groww, Angel One make it super easy
✨ Final Thought:
A Demat account is the first step into the stock market.
It’s safe, online, and yours forever — even if you don’t invest every day.
Start small. Learn step-by-step. And watch your portfolio grow over time.