Simple Steps To Open Your Demat Account
Opening a Demat account is the first step towards stock market investing. A Demat account, short for a dematerialized account, is an electronic account that holds your securities in a dematerialized form. It eliminates the need for physical share certificates and makes buying and selling securities fast and easy. Here are some simple steps you can follow to open your Demat account once you check how to make a demat account:
Choose a Depository Participant (DP).
The first step to opening a Demat account is to choose a Depository Participant (DP). A DP is a depository agent who provides demat account services to investors. There are two depositories in India – the National Securities Depository Limited (NSDL) and the Central Depository Services Limited (CDSL). You can choose a DP registered with NSDL or CDSL and open a trading account online.
Fill in the Account Opening Form
Once you have chosen a DP, you need to fill in the account opening form. You can obtain the account opening form from the DP or download it from their website. The form requires you to provide your personal and contact details, as well as your PAN card and address proof. You also need to sign the agreement and declaration at the end of the form. This helps you learn how to make demat account.
Submit the required documents.
After filling in the account opening form, you need to submit the required documents to the DP. The documents you need to submit include your PAN card, address proof, and passport-size photographs. Make sure the documents are self-attested and valid.
Verification and In-Person Verification (IPV).
Once you have submitted the account opening form and the required documents, the DP will verify your details. This may include a background check and verification of your PAN card and address proof. In addition, the DP may also conduct an In-Person Verification (IPV) to verify your identity. To open a demat account online, you can do this via video conferencing or in person at the DP’s office.
Receive your Demat Account Number
Once your verification is complete, the DP will provide you with your Demat account number. This is an individual 16-digit number that identifies your Demat account. You will also receive a login ID and password to access your Demat account online and you will be able to start your Demat account.
Link Your Demat Account to Your Trading Account
To start trading on the stock market, you need to link your Demat account with your trading account. Your trading account is where you place buy and sell orders for securities. You can link your Demat account with your trading account through your broker’s website or trading platform.
A Demat account is a must-have for investors who want to trade in the stock market as it eliminates the need for physical share certificates and makes the process of buying and selling securities fast and easy when you open trading account online.