Friends, stock market investment has always been considered complex
Everybody used to think, If you want to invest in the stock market then its a very complex process
To open an account, it will take a lot of time
and if you want to choose a stock, you will have to go to different places
after which you can think of starting your journey in the stock market investment
But from the time Groww has entered into the stocks
Groww has simplified this whole process
Other than making it simple
Groww has made it efficient so that you can activate your account in a simple and timely manner
and start your investment journey as soon as possible
Friends, you might have wondered many times on what is a Demat account?
and how to open a Demat account to invest in stocks
I, Jagdeep Singh, Welcome you to the Groww Youtube Channel
In this video, we will talk about
so that you can start your investment journey as soon as possible
The more quickly you can make an investment and for a longer period of time
your chances of making a better return increases
but friends, before starting the video, if you have not subscribed to Groww's channel yet
then Subscribe to Groww's Channel
Let's start today's video
wherein I will explain to you, the step by step process on how to open an account on Groww
and how you can invest in stocks from there?
Friends, before telling you the account opening process
I would like to tell you the history of what was the process of opening a Demat account till now
So friends, the process of opening a Demat account in the past used to be
completely offline
If I talk about offline, then you had to ask for forms from different brokers and fill it
after which you used to sign it at different places
after signing, you had to courier the form back to the broker
The whole process would take you 10 to 15 days cause the form had to be bought
then signed and couriered, then the time it takes to reach there
After which when the broker used to open your account, it would take a lot of time in this process
And because of such a long time-consuming process
It happens that the investor by then has missed out on a good opportunity to invest
But friends, Groww's onboarding process through which you can create your own Demat account
it is completely online which means if you want to open a Demat account
you wouldn't have to fill up forms and courier it
I will tell you how you can open your account, without any couriering
Your account will get activated in some time
and you can start investing in the same day
Friends, first let's talk about what is a Demat account?
So friends, If I look at Demat's full form then
So what is its meaning?
So friends, If you were investing in the past few years
when there was no Demat facility
so whenever you used to buy a particular share
you used to get a certificate for that
on the top, it was mentioned of which company and how many stocks did you purchase
which you had to store in its physical form
As you know, the process was very tedious
of how will you store this certificate
In order to solve this, a new initiative came up
which was called Dematerialization. So what happens in dematerialization is that
Whenever you buy a new share, that particular share in an electronic form is kept in one of your accounts
and the account in which it is kept is called Demat Account
Friends, if you trade money whether its taking money or giving money
you use your bank account
you keep your money safe in the bank account
When you want to give money to someone, you transfer the money to him
and when someone has to give you money then your money gets transferred to your bank account
so friends, in similar terms, if I talk about share market
so in share market, you have to trade shares
Assume, if you want to purchase a particular company's share
say if company A's share is of Rs. 100
so its process is very simplified for the user
that you gave Rs. 100 and bought a share
but friends, after two days, t + 2 settlement of stocks
after 2 days, your particular share gets delivered to the broker
and that particular share is put into your Demat Account
Just like in a bank account, money is deposited and withdrawn
Similarly in your Demat Account, stocks are transacted at your authorization
means whenever you have sell it, you authorize thus your share is taken out of the Demat account
and delivered to the person, you sold it to
And when you buy a share, your broker once he receives, puts your share in your Demat account
So friends, from this example you can learn how important Demat account is
and is a mandatory account if you want to invest in shares
Before buying a single share, it is mandatory to buy a Demat account
So friends that was about Demat account
Demat account is opened by your broker on your behalf
once you give all your details like your signature and bank account to your broker
After receiving all this information, your Demat account is opened
After opening a Demat account, you receive a mail from your broker
which has a CMR copy. The full form of it is Client Master Report
Client Master Report tells you all the details regarding your Demat account
from your Demat account number to your name, address and the linked bank account details
That is why CMR report is so important for you
Friends, It's one more use is
whenever you trade share in the market, it helps you there
other than that, when you apply for an IPO
Assume if any company's IPO is coming, even for that Demat account is required
cause till the time, you don't have a Demat account you cant apply for an IPO
cause by chance if you get the IPO and you don't have a Demat account
then there won't be any place to keep your Demat account
so if you even want to apply for IPO, it is mandatory for you to open a Demat account
So, friends, we spoke about the overall Demat account
I spoke to you about its importance in detail
Now I will tell you, How can you open your Demat account through Groww in a timely and simple manner
and how you can start your investment journey with it in the shortest time
So friends, on the side, you can see the steps
with that, I will keep telling you why is it important to put a particular detail
while opening an account
so for the new users, who have never used Groww app before today
After putting your Email Id, the second important process is
You will have to verify your mobile no. as every information regarding your account goes to this number
After verifying the mobile no. the most important thing in the world of investment is having a valid PAN card
cause investment is related to your income
so if there is anything related to income then its important to have a valid PAN card
so the third step here would be
to put in your own Pan card details
Once you put in the PAN card, Groww will identify the user of the PAN card
after which you can verify your PAN card again
After which friends, you have to fill in a few basic details
after which there is a important step
like I told you the use of Demat is done to trade in stocks
so whenever you want to buy or invest in a particular share
you must have money in account
you will have to transfer that particular amount into Groww as Groww balance
After putting that money in Groww balance, you can invest that money
so friends, how will money get transferred to your Groww balance
Friends, you need to have a proper bank account for this which you will have to link with your Groww account
You can verify your bank account here by putting in the IFSC code
and bank account details like your bank account number
Now friends, in order to open Demat account in the past, people used to ask for cheque
so that they can verify your bank details
cause the compliance says the Demat account should belong to the owner of the bank account
It is not possible that I am opening my investment account and I linked it with my father's bank account
so Groww verifies the bank account you added that is of yours and not of someone else's
And Rs. 1 is deposited in you account which is called penny drop
Via penny drop, when Rs. 1 is dropped in your account
so the name of the bank account owner and the Pan account holder is matched
It is verified that the PAN card belongs to the account holder himself or not
Once the bank account is verified, you have to fill up some other details
after which you reach the last and the most important step
The next important step to open an account with Groww is to upload your signature done on a white paper
Like you can see on the screen, upload signature's option
so you have to do your sign on a white paper and upload it
Friends, pay attention that you have to do your own valid signature here
after uploading this signature, you reach the last step after which your investment journey would start
This is called e-signature
Many people want to know, how is e signature done and what problems does it solve?
So friends, your account opening form to trade in stocks
in the past, you had to courier the forms after downloading which used to take 7 to 10 days
That particular process can be simplified via e-sign
The process of doing e-sign is to click here, it takes you to the website of NSDL
where you will have to put you aadhar card number
After putting aadhar card no., the mobile no. linked with it gets a OTP
and if you fill in the OTP there, your process of e-sign gets over
But friends, I would like to tell you a small thing
When you are taken to another page, where you have to fill your aadhar card no.
please make sure you are putting your own aadhar card no.
Now assume, as my aadhar no. is not linked with my mobile no. thus I put in my father's aadhar no.
In that case, your account won't get opened and you will have to repeat the whole process
So please take care that when you put in the OTP
from the registered mobile no. which is linked with your aadhar card
After this step, your account opening process is complete
After which your investment journey starts in just some time
Under stocks, you will find a lot of information
you can use it to think of investing intelligently
Friends, this whole process is very simple
If you try it by yourself, you can complete this whole process in just sometime
Once this process gets completed, your Demat account gets created
After which you will receive an email with a CMR copy, Client Master Report
which is very important as it tells you all the details of your Demat account
Friends, follow this process and start your investment journey soon
One more benefit, you get in Groww is that if you are interested in investing in a particular stock
then the financial information, Profit & Loss statement, balance sheet, cash flow statement, competitors of that company
are all available on the same page
After taking an informed decision with the information available, you can start your investment
I hope, when you are starting to invest, like a good investor
you will do your own research after which choose a fundamentally strong company
Invest for a long time so that in the future, you can make good returns
Other than this, we will keep posting educational videos on this channel
so that we can help you in choosing a good stock
We will tell you how you can empower yourself to choose a good stock based on your needs
and so that you don't have to depend on others to tell you which stock you should invest in
Friends, If you liked this video
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Comment and tell us your experience with Groww stocks
and if you haven't onboarded yet then start your investment journey soon
In the future, we will come up with more videos to educate you on investment
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so that we can help you to become an intelligent investor
Happy Investing!