A demat account is like a bank account for your shares and stocks in which the shares/stocks are held in an electronic format. Demat accounts make it much easier to own and trade stocks, shares, mutual funds, ETFs by eliminating paperwork. Note that a Demat account and trading account are not the same. A trading account is used to buy and sell shares while a Demat account is used to hold them. Similar to a bank account, where money is debited and credited, shares are debited and credited from a Demat account.

• Choose a Depository Participant (DP)* with whom you would like to open Demat account.
• Fill the account opening form. Carry all your original documents with you.
• The DP will provide you a copy of all the terms and conditions and the charges that will be levied for the services.
• After the form is processed, you will be given an account number/client ID and a password by the DP. These details would be required to access the demat account online.
• You can operate your demat account without holding any securities. Also, there is no hassle of maintaining a minimum balance either.

Absolutely, an individual can open multiple demat accounts. However, they must be with different Depository Participants (NSDL & CDSL) or brokers. It’s important to note that maintaining multiple accounts might require paying separate maintenance charges for each.

Yes, a demat account is generally safe. It’s regulated by the Securities and Exchange Board of India (SEBI) and managed by Depository Participants (DPs) like CDSL and NSDL. However, like any financial account, its safety depends on how securely you handle your login credentials and personal information.