Hello, Friends welcome to a fresh article of “Multibaggercalls.com”. Here in this article, I’m going to explain “Procedure To Open Demat Account”.
I explained the complete process step by step.
This article is very helpful for new traders and investors who want to invest in the stock market.
Before start investing you need to understand What is Demat Account and what is the procedure to open demat account.
What Is a Demat Account?
Demat account is like your bank saving account.
In a bank saving account, You keep your money in digital form.
As same in the Demat account, You can keep your shares of the company. in digital form.
In a few years back share keeps in hard form.
Which is very difficult to manage.
By opening the Demat account handling share is very simple.
Demat account is not only for shares.
In Demat, you can keep company bonds, government securities, mutual funds, etc…
You can open the Demat account with zero balance.
As you opening zero balance bank account.
Documents Required For Open Demat Account!
As everyone knows that to open an account you need to submit some documents.
If you confused about what are the documents required to open an account.
Don’t worry about that I will help you.
There are only 5 documents required to open a Demat account.
List of required documents given below:-
- PAN card.
- ID Proof. (Addar card)
- Address Proof. (Electricity Bill, Phone Bill, Ration Card, Driving License, etc.)
- Bank account details. (Canceled Cheque)
- A recent Passport Size Photo.
Procedure To Open Demat Account.
The procedure to open demat account is very simple and easy.
To open a Demat account first you need to choose your Depository Participant.
There are 2 types of depository available in India.
After choosing your depository participant you need to fill up the application form to open an account.
The depository participant provides you a copy of rules and regulations.
You need to read the complete rules & regulations before the sign and submit.
After submission of all documents, the Depository participant contacts you for In-person verification.
Once the application process completes.
The depository participant will provide you an account number with the client ID and online login details.
Now you can access your Demat account only for buy & sell of shares.
My personal Opinion:-
As per my personal view, You need to research before choosing your depository participant.
Your bank will also allow you to open a Demat account.
But the brokerage charges of a bank are higher than the private brokerage firms.
There are so many brokers available, who’s allow you free Demat account for 1 year and also give you 15 to 20 free trades.
I hope now you understand what is the Procedure To Open Demat Account. If anyone has any queries or suggestion please ask in the comment box.