Demat accounts have gained immense popularity over the last few years. This is because there has been a dramatic change in investment. Earlier, traditional fixed deposits were the most popular form of investment. But now, more people are moving towards stock investing. As a result, it is more convenient to access the stock market in India with the availability of a demat account. The people who own demat accounts are known as demat account holders.
A demat account is a short name for a dematerialisation account. It is easier to hold shares and other securities in electronic form using a demat account. Using a demat account, you can have investments in Equity shares, Debentures, bonds, Exchange-traded funds, mutual funds, and government securities. In addition, with a demat account, you can convert your physical share certificates into electronic form to get better accessibility.
You must have some required documents to submit during the demat account opening. Here is a list of documents given below.
- Any valid identity proof like an Aadhaar card, PAN card, voter ID card, driving license, etc. with your photo
- Any address proof or proof of your residence: electricity bill, apartment maintenance bill (if applicable), registered lease agreement, driver’s license, passport, landline telephone bill, copy of your insurance, gas bill etc
- Submit a bank passbook or account statement as your bank account proof. It should not be more than three months from the receipt of the document.
- Submit your latest salary slips or your income tax return as proof of your income when you want to enter into the currency and derivatives segment.
How to Open a Demat Account in India?
Step 1: Choose a depository participant (DP) where you can fulfil your needs and requirements. You can get DP services from any bank, stockbroker, or online investment platform associated with SEBI (Securities and Exchange Board of India).
Step 2: Go to the official DP’s website, where you will have to mention essential details in the demat account opening form.
Step 3: Add a nominee to your account. It is essential to have a nominee because it will make it easier to transfer shares in the future in case of any misfortune.
Step 4: After completing the form, follow your Know Your Customer (KYC) norms.
Step 5: Submit your documents’ scanned copies for KYC that include the following:
- Identity proof
- Address proof
- Statement of bank account
- Income proof
It is easy to prove the ownership of your assets with a self-declaration.
Step 6: After submitting your forms and required documents successfully, you must go through the verification process known as In-Person Verification (IPV). It is mandatory. It is up to DP whether IPV happens online or offline. If it happens offline, then you must be present physically at their office.
Step 7: You must sign an agreement with your DP. You will get to see the duties and rights of the DP as well as the investor.
Step 8: Before you get approval for your forms and documents from your DP, they will go through them carefully.
Step 9: At last, you will get a unique Beneficial Owner Identification Number (BO ID) from your DP. You can access your demat account online using your credentials.
You must double-check whether you have filled out the details accurately before submitting them. Otherwise, you may face rejection because of the errors in your application.
You must know about different demat account charges. Before you submit your demat account opening form, you must go through the charges statement, like account opening charges, AMC charges, etc. You must get the best deal that suits you without any hidden charges.
Using a demat account online, you can invest in the stock market and grow your money. , opening a demat account is easy and convenient with Share India. Performing stock trading with Share India, you can invest in IPOs, Stocks, and F&Os across the National Stock Exchange of India Limited (NSE) and Bombay Stock Exchange of India Limited (BSE). You must remember the essential details mentioned above before you open a demat account at Share India in a completely hassle-free way.
Share India has over two decades of experience and is trusted by thousands of customers. With Share India, you will get a comprehensive facility for trading and investing in the stock market in India. By opening a demat account with Share India, you can enjoy the unique features of the Share India trading platform. It is easy to track your favorite stocks from one location. To trade smartly, you can set up actionable alerts, go through more than 100 indicators, and do in-depth market research and reports.