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Thursday, 17 February 2022

How To Open A Demat Account - Step By Step Details

How To Open A Demat Account

Are you thinking to invest in stock market and want to earn a good profit with stock market, the first step towards this is to Open a Demat Accoun    .  




A Demat account is an account to hold financial securities such as equity or debt in electronic form. In India, demat accounts are maintained by two depository organizations, National Security Depository Limited(NSDL)  and Central Depository Services Limited (CDSL).  A depository participant, such as bank, act as an intermediary between the investors and the depository. 

What is Demat Account 

Demat (Dematerialization) is the mechanism by which a customer may have physical certificates of securities converted into electronic balances. 

In other words, " Demat Account" is a frequently used term in the world of trading and investments. It is a  process that facilitates the conversion of share certificates from physical to electronic form. Shares held thereafter are easier to manage while providing more accessibility from anywhere around the world. 

Demat account also allows you to monitor and track your holdings seamlessly.  Now, we can see a dramatic shift in the savings patterns of Indians from traditional instruments to available alternatives such as stocks is primarily responsible for the jump. 

How To Open A Demat Account : Step-By-Step Details 

                 

  1.  Select Depository Participant (DP) 

First and very important step to open a Demat account is to choose the best depository participant(DP). You can choose the best DP services that are available in India through banks, stockbrokers and online investment platforms. While selecting a DP, look for a service provider whose offerings and features fit your needs and specifications. 

2. Apply for Demat Account 

Go to your DP's website and fill out the online Demat account opening form to open a Demat account. After filling the form, submit your mobile number and email in the form. Many depository participants allows you to open both trading and Demat account. 

3. Submit The KYC Details 

After you have completed the Demat account application, it is time to submit your KYC( Know Your Customer) details.  KYC requires scanned copies of  KYC documents such as proof of identity, proof of address, bank account statement, and proof of income. It is important to have all your necessary documents nearby before applying, as this will help you move through the process more faster.

4. Get Your Documents Verified 

Once you have submitted your KYC details online, your DP client will verify your KYC details to ensure utmost transparency. This is an necessary exercise that you must complete in order to check the validity of your records. If you are applying online then your DP  will provide IPV services online using a webcam or a smartphone, otherwise if your applying offline then you need to appear in person at either of your service provider's. 

5. Sign Copies Of The Agreement

Post verification, you will be asked to sign a contract with your DP(Depository Participant). This agreement enumerates all of the depository participant's and investor's responsibilities and rights. 

6. Get Your BO ID Number 

Upon processing your application, you will receive a unique 16-digit demat account number (BO ID) by the DP. Once You get your BO ID, you have successfully opened a free Demat account. You can access your Demat account using BO ID. 

Documents Required For Opening  A Demat Account    

The documents required to open a Demat Account is minimal. Opening a Demat account is quite a straightforward process. This makes it easier for new applicants to see the process through from start to end without any difficulties. You are only required to submit the following documents. 

  • Identity Proof : A copy of your PAN card with your photo.
  • Address Proof : For address proof a copy of any one of the following documents shall serve :
          Voter Id, Registered lease agreement, Driving  license, passport, Adhaar card, landline                    telephone bill, electricity bill. 

  • Bank account proof : A copy of your bank account passbook or bank statement. 
  • Proof Of Your Income : A copy of your latest salary slip or your income tax return. 

Important Things To Remember While Opening A Demat Account 

Before you go ahead and open a Demat account with a depository participant, you need to keep in mind certain important points

  • Link your Demat Account with your Trading Account  : A trading account is necessary for buying and selling in stock market. Without it, there is not much use for a demat account, except to hold your financial assets. Therefore, it is important to link your Demat account and with your trading account. 
  • Ensure you know about all the Demat account charges : Before submitting your Demat account opening form, always go through the statement of fees and charges. 
  • Fill your details correctly : Before you submit the form, double check the details . This way, you can make sure that there are not any mistakes or fields left unfilled. 
  • File your nominations : Many people tend to miss this important step while opening a Demat account. Always remember to fill this section which is about to fill nominee to your account. Having a nominee for your Demat account is critical, since it makes the process of transmission of shares much easier in the future. 

Best Demat Account In india -  In 2022

The most popular and best trading accounts in India are : 
  1. Upstox
  2. Zerodha
  3. Angel Broking 
  4. 5Paisa
  5. Sharekhan 
  6. IIFL
  7. Motilal Oswal
  8. HDFC Securities
  9. Kotak Securities
  10. ICICI Direct Demat Account 
  11. Religare 
  12. SBICAP Securities Demat Account 
  13. Axis Direct 
  14. SAS Online 

Minimum Amount To Open A Demat Account 

You can open an account even with zero balance. You should also check the account opening charges. Some service provides offer you to open an account with no charges, while some charge 200, 400 etc. 

Conclusion 

So If you are one of those people who are interested and thinking to open a Demat account to invest your money and to earn a good profit, but you don't have complete details about how to open Demat account and Which Demat account is best for you. 

In this article we have provide all the related details about How you can open a  Demat account. If find this article useful to you and for your family and friends then share it with them too. And if you have any doubts or queries ask in the comment section.  




 


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