Demat refers to a dematerialized account.Just as you have to open an account with a bank if you want to save your money, make cheque payments etc, you need to open a demat account if you want to buy or sell stocks.

For opening a demat account, no capital is required, as many of theDepository Participants(DP's) do it for a nominal charge(even some of them do it free). Only things you would be requiring are: 1. Proof of Identity 2. Proof of address 3. PAN.

To invest into share market / stock market - an individual need toopen a Demat account.Demat account holds your securities (like shares, debentures, bonds, Government securities, MFs units, etc) in electronic form. We can open your demat account with both of the depositories - NSDL & CDSL. For trading into share market

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