The first step towards trading and investing in the stock market is to open a demat account. This account holds all your securities in a dematerialized form to add convenience and security.
Now, opening the demat account requires registration and document verification. As a result, it is crucial to verify the status of the demat account opening.
In this article, we will look at how to check your demat account opening status.
Why Do You Need A Demat Account?
With dematerialization, securities are held in electronic form in a demat account. Every market participant has a demat account where the securities are stored electronically.
When you buy new shares, they are automatically updated in your demat account.
You can open a demat account with a broker like Dhan. The entity must be registered with either National Securities Depository Ltd (NSDL) or Central Securities Depository Ltd (CDSL).
Demat accounts are mandatory and they provide a range of benefits such as:
- Easy Storage and Transfer: allows investors to store their securities in a dematerialized form easily. This means you can trade securities effortlessly, even in bulk, with its easy transfer.
- Fast and Easy Transactions: The demat accounts streamline the trading process by helping investors buy and sell securities with ease.
- Simplified Portfolio Management: The demat accounts provide a consolidated list of all the investors’ holdings, making it simpler to manage the portfolio.
- Safe and Secure: By converting your securities into a dematerialized form, you eliminate the risks associated with physical securities, such as loss, damage, and theft.
- All-in-one Investment Storage: The demat account can hold multiple assets, such as bonds, exchange-traded funds, mutual funds, government securities, etc., allowing you to invest and trade in all of them.
- Automatic Updates: If the company you are a shareholder of makes any corporate action, such as a stock split or bonus issue, they will automatically be updated in your demat account.
Importance of Checking the Demat Account
You might be excited to begin trading and investing using your demat account, but there is more than that to the story. You first need to check the account opening status to ensure a smooth experience.
Here are the reasons why you must check your demat account opening status:
- Timely Details
If you check your demat account status, you will be aware of any updates you have received on your application for the demat account. As a result, you can take necessary actions regarding your account opening in a timely manner.
- Document Verification
To open a demat account, document verification is essential; without it, the account cannot be opened. By checking the demat account opening status, you can guarantee that your documents have been verified and there is no rejection or delay at this step.
- Smooth and Fast Onboarding
Monitoring the demat account opening status helps ensure a smooth onboarding experience by eliminating errors. You can identify problems and address them so that there are no long waiting periods before you can begin investing and trading through your account.
If you consistently monitor the status of your application and account opening, you can address any issues that may arise at any stage of the process. You can also have better peace of mind by being aware of all updates regarding your demat account opening.
How to Check Demat Account Status?
After understanding how shares are stored in demat accounts and why you need to check demat account status, let’s understand the process of checking demat account opening status.
- Tracking Through DP’s Website or Application
The first and most common way to check the demat account opening status is to log in to the DP app, such as the Dhan app. Use your application number to view the status of the application.
- Customer Support
If this method does not work, you can also contact your DP’s customer support. Contact them by email or phone and provide them with the application number to find out the status of your demat account opening in no time.
- Track Through NSDL/CDSL Websites
The last option to track the status is through the NSDL/CDSL website by going to the ‘Track application status’ feature and entering your application ID and PAN number.
Some DPs also mail you the status of your application or send updates through SMS. If that is not the case, you can follow these steps.
Conclusion
The Demat account is the most important when trading and investing in financial securities. As a result, it is important to check the account opening status.
Setting up SMS alerts makes the process easier and immediately notifies you about the status.
To ensure smooth onboarding and no delays, it is best to keep checking the account status until it is activated.
