Digitisation is slowly taking over the country, influencing even the industry of the stock market. Over the last few decades, the traditional form of trading stock on an open floor, with the physical holding of shareholder certifications has slowly faded out.
Now, trades can be made online where your stocks can be stored in a dematerialized form, in a demat account. Without this account, you will not be able to purchase or trade stock.
So how to open demat account? Here are some steps you can follow to begin this process:
Step 1: Approach the depository participant (DP) that offers you stock market trading facilities of your choice. Get an account opening form and fill it with the appropriate details along with passport sized photographs.
Step 2: Submit the relevant documents along with your filled form. It would need to include:
• Proof of identity: You will need to submit your PAN card, voter’s ID, passport, driver’s license or any ID card with the applicant’s photo issued by the appropriate government institute.
• Proof of address: You will need to submit your ration card, passport, voter ID, driving license, or bank passbook or bank statement. It could also include any document with an address issued by the central or state government.
During this process, an in – person verification process will be carried out by the member of the DP’s staff. In this process, the details that you have been provided will be cross verified. Once these documents have been verified by the appropriate banking institute, you can then proceed to the next step.
Step 3: You will be then provided with a copy of the rules and regulations. It will also include the terms of the agreement and charges you will incur for the application process.
Step 4: Once your application has been processed, the DP will provide you with an account number, which is also known as the client ID. You can use the details to access your demat account online as per your convenience.
Step 5: Once your account is set, you will need to make certain payments. This would include fees such as the annual maintenance fee, which is levied for the maintenance of the account. A transaction fee will also be levied for debiting securities, to and from the account. This is normally charged on a monthly basis. Furthermore, if you need to rematerialize your stocks, see what are the charges for the process are. All the while, ensure that you are well aware of the how the transactions are charged.
Step 6: Now that you are aware on how to open demat account, you can begin to start trading stocks as per your requirements. You need not have any balance or minimum shares to maintain your stock.
Now, trades can be made online where your stocks can be stored in a dematerialized form, in a demat account. Without this account, you will not be able to purchase or trade stock.
So how to open demat account? Here are some steps you can follow to begin this process:
Step 1: Approach the depository participant (DP) that offers you stock market trading facilities of your choice. Get an account opening form and fill it with the appropriate details along with passport sized photographs.
Step 2: Submit the relevant documents along with your filled form. It would need to include:
• Proof of identity: You will need to submit your PAN card, voter’s ID, passport, driver’s license or any ID card with the applicant’s photo issued by the appropriate government institute.
• Proof of address: You will need to submit your ration card, passport, voter ID, driving license, or bank passbook or bank statement. It could also include any document with an address issued by the central or state government.
During this process, an in – person verification process will be carried out by the member of the DP’s staff. In this process, the details that you have been provided will be cross verified. Once these documents have been verified by the appropriate banking institute, you can then proceed to the next step.
Step 3: You will be then provided with a copy of the rules and regulations. It will also include the terms of the agreement and charges you will incur for the application process.
Step 4: Once your application has been processed, the DP will provide you with an account number, which is also known as the client ID. You can use the details to access your demat account online as per your convenience.
Step 5: Once your account is set, you will need to make certain payments. This would include fees such as the annual maintenance fee, which is levied for the maintenance of the account. A transaction fee will also be levied for debiting securities, to and from the account. This is normally charged on a monthly basis. Furthermore, if you need to rematerialize your stocks, see what are the charges for the process are. All the while, ensure that you are well aware of the how the transactions are charged.
Step 6: Now that you are aware on how to open demat account, you can begin to start trading stocks as per your requirements. You need not have any balance or minimum shares to maintain your stock.
No comments:
Post a Comment