How to start a Demat account in India

For those interested in the rise and fall of the stock market, starting a Demat account would be a right move. The account acts as a medium for users to hold stock market shares and other securities such as bonds, government securities, Exchange Traded Fund (EFTs), and Initial Public Offering (IPOs). Moreover, a Demat account has many benefits ranging from secure financial investments to easy handling and management.

Also read: How to update phone number, address in Aadhaar Card

Demat accounts first came into existence in 1996 and its arrival played a crucial role in the Indian stock market. This meant shares could be traded on digital platforms, thus, eliminating the trouble of using physical shares. Now, it is mandatory to start a Demat account to trade in the Indian stock market.

How to open a Demat account offline

Through the offline method, you can create associations and add contacts through networking. Getting to know your bank account holders is important, understanding your financial conditions and added benefits help you in managing your budget and savings accounts. There are different bank branches and while most of them perform the same function, their added benefits vary from each other.

Make sure you know which bank, financial institution or broker is the best suited option for your financial needs. Otherwise you can always hire an expert to guide you through your financial situation.

Step 1 : Firstly, you need to Choose a DP — Depository Participant. This can be any authorised bank, financial institution or broker. You open an account with one of the mentioned options. This depends on the brokerage charges, leverage provided and annual charges —basically your financial situation

Step 2 : Complete a filled account opening form and a KYC form and submit them to the chosen DP, you will need to attach copies of the given documents as well,

● PAN card

● ID proof

● Passport size photographs

● Residential proof certificate

Note : carry copies of each documents for verification and you are required to submit a cancelled cheque.

Step 3 : Sign an agreement that mentions the rules, regulations and rights associated with securing a Demat account. Read the information carefully and make sure you are clear with every point. This is then submitted to the DP and is authorised. A copy of the authorised agreement will be handed over to you

Step 4 : After the account is open, you get a unique Client ID from your DP and other details related to your Demat account — important details used for logging into your Demat account online

Step 5 : An instruction slip is handed to you by the DP, it mentions all directions to follow during depository services—transfer, purchase and so on.

Your Demat account does not require a minimum balance of shares or trades to maintain and you can start more than one Demat account, just not under the same DP.

Also read: How to invest, trade in the stock market

Many of the once offline official procedures and documentations are now possible due to the advancement of digital platforms. People can now file in their taxes within a few minutes of online work. The steps are simple and easy to follow.

Step 1 : Upon choosing a DP, go to the respective website

Step 2 : Navigate the page and Click ‘Open Demat Account’ tab and submit the given details:

● Your name

● E-mail

● City

● Mobile number

● OTP — One-time password will be received

Step 3 : Later on, you receive communication from the Chosen DP to get in touch with you to complete the entire process of opening a Demat account.

Conclusion

With things now moving to digital, banks and financial institutions are now able to offer their clients maximum support online. This saves time and effort for both the providers and customers.