Whether there is a rise in the stock market or a failure, it will surely grab everyone’s interest level. For every possible idea and to be a part of this section, you need to open Demat account as the initial step to follow. It will be a medium through which you get to hold stock market-based securities and shares like bonds, IPOs, mutual fund units, government securities and exchange-traded funds or ETFs.
Demat accounts will not just assure the security of all the available financial investments. It is also going to facilitate the ease of just handling and proper maintenance from time to time. So, without wasting time, it is better to focus on the ways in which you can open one such Demat account under your name.
Ways to open a Demat account:
There are some simple steps you need to follow while planning to open a Demat account for the first time. So, let’s get on with the values right away!
- At first, you need to decide on DP, which is any authorised financial institution, broker or bank. You need to choose the bank wisely with whom you want to open a Demat account. The DP choice solely depends on annual charges, brokerage charges and the leverage available.
- Now, you need to submit a properly filled up account opening form along with the KYC form. For that, you need to attach some documents, and those are Pan Card, ID proof, residence proof and passport-sized photos.
- Make sure to carry the original copies of these major documents along with Xerox for some verifications purposes. You must have a cancelled cheque by your side for some dividend bank details.
- Now, you have to sign one agreement that will mention all the regulations, rules and rights related to holding a Demat account. Be sure to read them well, and don’t hesitate to clear your doubts. After you submit that to the DP, an authorized person will sign it and will present you with a copy of that document.
- After opening up the account, the DP will present you with one unique client ID. Along with some of the other details presented to you, it will help you to gain access to the Demat account under your name online.
- The DP will present you with the instruction slips, which can further be used for some of the depository services such as purchase, transfer and more.
- Always remember that the Demat account will not need any minimum balance of the financial securities or shares to be held as collateral. Moreover, if you want, you can have more than one Demat account, which will be linked up to a single PAN ID. But, the DP must be different for each account you hold.
Understanding the Trading account all too well is very important, especially if you are planning to invest in shares for the first time. The more you research, the better points will be coming in your way. So, focus on those plans now with the best results.
