Demat Account is a medium that can be used to buy, hold and sell shares of a listed company in stock market. You can also invest in Initial Public Offerings, Government Securities, Bonds, Mutual Funds and Exchange Traded Fund through this account.
A demat account is highly useful in operating, handling and maintaining your financial investments. It records history of all your transactions that you can check anytime. It also adds security to your investment profile where no one can see your portfolio without permission.
For opening a Demat Account you have to first decide who will be your Depository Participant (DP). DP is an institution in which you are going to open your account. It can be a broker, financial institution and authorized bank. Currently there are many institutions and banks in which you can open your demat account. Just remember that you cannot have more than one account so choose your DP wisely. Usually people select DP which charges zero or less brokerage/commission.
List Of Documents You Need
- PAN Card
- Aadhar Card/Any other Government Issued ID Card
- Residence Proof
- Passport Sized Photographs
Also read:
How To Look Offline On Social Media Platforms
Steps To Open A Demat Account
- Select your DP after doing research
- Look whether DP is certified by SEBI or not
- Go to official website/mobile application of your DP
- Sign Up using your Email ID/Mobile Number
- Click on ‘Open Demat Account’
- Enter Required Details
- You will be contacted by DP for completing formalities
- Provide self-attested copies of Aadhar Card, PAN Card.
- Your Demat Account will open in 24 hours to few days.
Important Detals To Collect From DP
- Depository Participant ID
- Beneficiary ID/Demat Account Number
- Power of Attorney Number
It is important to have a strategic financial planning according to your needs and goals. Do not rush into doing things and focus on gathering information. If you will not do your research before entering into financial markets then very easily you will lose your hard earned money.
