The Government of India made the decision to go into lockdown in March 2020. Since then, brokerage companies have reported a major increase in the number of Demat Accounts opened with them which has been attributed to the free time people saved when they were working from home.
Demat, which is short for ‘dematerialized’, enables the owner to hold financial securities as equity or debt in an electronic form. It is an account where investors need to store the money they invest in the market, and the money they receive after they sell their positions.
As per data confirmed by MoneyControl, over 10 million Demat accounts were opened by individual investors in 2020. This phenomenon was not limited to India, as markets globally saw the participation of several new investors into the market.
Anyone above the age of 18 years is eligible to open a Demat account with various brokerages. To create a Demat Account, it is mandatory for the person to have a PAN Card, Bank Account, Identity and Address Proofs.
Opening a Demat Account is not difficult at all. It is perhaps easier to open a Demat Account than a Bank Account. An interested individual may choose any brokerage of their liking and can easily access the said brokerage’s websites/apps to open their Demat Account.