Technology has appeared in human life as one of the greatest boons of modern life. Due to the advancement, you have got internet as the magic lamp. From ordering food to booking train tickets, everything is now easy through the internet. Now, investments in the stock market have also become easier with the demat account. If you want to buy and sell stocks, you have to open a demat account. A dematerialized account or demat account is important to help investors keep track of certificates and bonds and other securities, those are held in electronic format.
Have you opened the account? To be the best demat account in India, the first step is to open it. Are you a beginner? Then, you need to follow the steps to open a demat account. Read on to know more-
To make the initial step, you have to approach to the depository participant (DP), an agent of the depository. Then, you will be provided a form to fill up for opening the account. How to get DPs? There are websites, like NSDL and CDSL, where you can find depositories.
Here, you need to enclose the photocopies of your address proofs and identity proofs.
Now, you have to sign an agreement with DP. That will be done by following the depository standard format. There you can go through the rights and duties of a DP and an investor. Never forget to keep the copy of the agreement for future reference.
This is the final step. Now, the DP will open an account for you and you will be given the account number. This account number is also known as Beneficial Owner Identification Number (BO ID). Any kind of purchases or if you make any investments, all will be linked to this ID and will also be credited to this account. Once you sell your securities, the demat account will be debited.
Choosing the DP is entirely up to you as you can make several demat accounts at one time. You also don’t need to open DP account with your stockbroker.
Essential Documents to Open a Demat Account
Usually, you should provide identity proofs and address proofs to open a demat account. Along with that, you should also provide your passport-sized photographs and photocopy of your PAN card.
Identity Proofs You Need to Furnish-
- Income tax returns
- Voter ID card
- Bank attestation
- Electricity bill
- PAN card
- Driving license
- Identity cards issued by Central or State Government
- Identity cards issued by professional bodies, like the Bar Council of India, Institute of Cost Accountants of India, Institute of Chartered Accountants of India.
Address Proofs You Need to Provide
- Ration Card
- Leave and License agreement
- Self-declaration by the Judge of the Supreme Court
- Verified copies of electricity bills
Opening a demat account is quite easy. With this information, now you can open it without the help of any stock brokers. Go ahead and try investing in stock market.