HOW TO OPEN A DEMAT ACCOUNT?

 Demat account opening is a six step process those are:

1) Choose Depository Participants:

In India banks, stockbrokers and online investment platform offers D. P services, one should choose a service provider according to his/her requirements. Choose a D.P which provides both trading and Demat facility. 

2) Submit Demat account opening form:

Visit your D. P's website and fill the online Demat account opening form to open your Demat account. 

3) Fulfill (KYC) know your customer norms:

You will have to complete this norms after filling your opening form ,this would require you to submit scanned copies of KYC documents such as your identity proof, address proof, bank account statement, and income proof. It is better that you should have all documents checked well before applying for the process. 

4) Go through verification process:

After fulfilling your KYC you will be asked to come at your DP office for In Person Verification (IPV) this exercise is mandatory done to verify the authenticity of your documents but few DP's provide online service through webcam or a smart phone.

 

5) Signing AgreementAgreement copies:

Once your IPV is completed your DP will ask you for signing an agreement which generally contains the duties of DP and the investor. 

6) Get your BO ID number:

Once the above mentioned process is complete your DP shall proceed for the account opening, upon approval of your application you will be provided with a unique Beneficial Owner Identification Number (BO ID) which will help you to access your account. 

• Documents required for opening a Demat account:

- Identity proof:

A copy of your PAN card with your passport size photo. 

- Address proof:

A copy of any one of the following documents shall serve as proof of your residence.

• Voter’s identity card

• Registered lease agreement

• Driver’s license

• Passport

• Aadhaar card

• Landline telephone bill

• Electricity bill

• Apartment maintenance bill

• Copy of your insurance

• Ration card

• Gas bill

• Bank passbook or account statement (not older than 3 months from the date of receipt of documents). 

- Bank account proof:

A copy of your bank account passbook or bank statement (not older than 3 months). 

- Income poof:

 A copy of your latest salary slips or your Income Tax Return (mandatory for currency and derivatives segment). 

• Things to remember when opening a Demat account:

1. Link your Demat account to the trading account. 

2. Fill in your details correctly while filling your opening form. 

3. Ensure you had compared your DP's fees charges to make a good deal. 

4. File your nomination so that you would not have any trading problems in the future. 

- important thing: one should always compare the fee charges of DP's and always prefer the one providing best app's , support in trading shares. 

• Who should start a Demat account? 

The answer is not so simple because investing in share market is always risky, people think that they will make a high profit margin , but suppose you need urgent money and at the same time there is a collapse in the market you may loose your wealth because you might be in loss, share market is good for those who are earning high salary but for someone who is earning 15k or 20k monthly or doing a micro level business, such things are bit tough to invest though share price always raise but they are never always fixed, you should have a proper knowledge of a share you are buying for example you buy a share at 10₹ then you should know when the share price will reach your profit margins and if not reached, "what must be the next step you should follow to reduce your losses? ", "I insist the reader for doing a business and gaining skills and if earning enough through it then one must go for share market." 

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