In the last few years, the trend of investment in the stock market has increased a lot. In such a situation, this Demat account has also become quite popular. Know about the step by step process to open it.
New Demat Account: If you want to invest in the stock market or buy any stock in the country, then it is mandatory for you to have a Demat account. In the last few years, the trend has increased a lot about trading and investing in the stock market. There are many companies and apps available in the market which are providing the facility to the people to invest in the stock market easily. In such a situation, this Demat account has also become quite popular and the trend of opening this account has increased among the common people too.
It is not surprising that where earlier people in India used to use traditional fixed deposits for their savings. Whereas in today’s era, its place has been taken by stocks and share investment. Let us know how we can easily open this Demat account.
Why Demat Account is necessary
Demat account simplifies the process of holding shares and securities in electronic form for the investor. Its purpose is to convert share certificates into electronic form, so that investors can easily manage their accounts.
What documents are required to open a Demat account?
You should have all the necessary documents with you so that you do not have any problem in opening your Demat account. Let us know which documents do you need to open a Demat account.
- Government of India recognized ID proof such as Aadhar Card, PAN Card, Voter ID Card, Driving License
- Address proof such as lease agreement, driving license, passport, landline telephone bill, electricity bill, gas bill etc.
- Bank passbook or bank statement. This will be the proof of your bank account. Keep in mind that this statement should not be more than three months old.
- Latest salary slip or your income tax return. This will be the proof of your income
- Open your Demat account using these easy stepsStep 1: First of all choose your depository participant according to your requirement. In India, you get the option of National Securities Depositories Ltd (NSDL) and Central Depositories Services Ltd (CDSL) for this. Banks, stockbrokers and online investment platforms in India provide this service.
Step 2: Visit the official website of whichever depository participant you choose from NSDL or CDSL and fill the new Demat account form. Also, enter the name of the nominee for your account.
Step 3: Along with this, enter your KYC details here as well.
Step 4: Submit the scanned copy of all the KYC documents including ID proof, address
proof, bank account statement and income proof.
Step 5: After this you have to follow the verification process of ‘In-Person Verification’ (IPV). This is a mandatory step. You can do this verification process online or by visiting your depository participant’s office.
Step 6: After this you have to sign an agreement with your depository participant. This agreement contains information regarding the rights and duties of both you and the depository participant during this partnership. ?
Step 7: After checkin
