How to open a Demat Account ?

We generally ask our broker that can we have another demat account? the broker will say no as there is his vested interest in you having a multiple demat accounts.

actually, you can have multiple demat accounts in your name with different brokers. There is no harm in that. I am having two demat accounts with different broker one is for stocks and another is for mutual fund SIPs.

actually, you can have multiple demat accounts in your name with different brokers. There is no harm in that. I am having two demat accounts with different broker one is for stocks and another is for mutual fund SIPs.

Do you know that you can get a loan against your demat account shares and securities? Yes, you can. There is a facility called Loan Against Shares (LAS) in which you can pledge your securities lying in the demat account and get the loan.

In this process, your shares will be collateral with the lender from whom you are getting the loan.

You can choose the securities you want to pledge or you can simply pledge the whole demat account for taking a loan against shares. Sometimes we need money urgently. In such a situation, LAS can help you in getting a loan instantly against your securities lying into demat account.

The benefit here is you don’t have to sell your securities in order to get the money, so your securities will continue making money for you. On the other hand, you will get the money as per your needs immediately.

This is a good option as the return you will get from the securities will compensate the interest you will pay for getting a loan.

If you want to have two different account one with a full-service broker and another with a discount broker, you can do that. No need to open a new trading account with a new broker.

You can link your existing demat account with a new broker.

Your broker generally will not allow you to link existing demat account with his trading account. But if you insist, your broker will have to allow you to link existing demat account with his trading account.

If your broker is denying for linking existing account, you may go to another broker who offers this facility. Legally, broker can’t deny for linking existing demat account with his trading account.

The main benefit of having a single demat account is that it is very easy to track all your investment at one place. Also, you will be saving a few bucks on the annual fees for maintaining a demat account.

If you don’t use your demat for certain period of time (usually for a long time like 6 months or year) Your account will be frozen. You need to again get the KYC done for that demat account.

if you are not going to use the demat account for long-term it is advisable to get it closed.

Your broker will usually tell you not to close the account as it hardly makes any difference. But If you are not going to use that account, you should get it closed.

If your account gets frozen due to nonusage, you will be in trouble to get it to reinstate or want to close it forever. You need to get the KYC done before doing anything on that account.

use your demat accounts actively, and if you don’t want to use it, get it close as soon as possible to avoid any future dispute or hassle

Don’t go by broker’s word as they have their vested interest in you keeping that account open even if you don’t use it.

the Demat account is automatically gets updated on a daily basis, you will have the accurate and most recent status of your investments and earnings

Various investment avenues like stocks, mutual funds, bonds all are updated in one place, you don’t need to go and submit the updated status or get the same from different parties.

There are now online demat accounts where you don’t need to submit any papers. This is fast and cost-effective as well, as demat account company will communicate with you over e-mail and SMS only.

All your investments can be reported into a single demat account. You don’t need to have a separate demat account for stocks, mutual funds, bonds etc

One account will take care of all your needs. It’s very easy for you to track the performance of your entire portfolio in one place.

Risk-like thefts, forgery, delay in delivery etc. have no place in the online demat account.