A demat account or simply the dematerialized account is opened by a specific investor by registering to the broker or sub-broker for which a number is quoted and all the transactions are made. The form for a demat account can be downloaded online and can be bought to the concerned branches that offer the demat services to get the bank account opened in it. The procedure for this account is not so complicated as what it seems and thus here we are explaining the procedure to open a demat account for all.
How to Open a Demat Account
1. Why Do I Need A Demat Account?
You need a demat account for the electronic settlements of trades to take place as well as for the share transactions. You just require a demat account accessing password for it and you just need
to put it in use for making the transactions.
2. What Can I Get From A Demat Account?
A demat account enables you to get the bonus or shares credited immediately to your account and there is no loss even while a theft or robbery. The costs of transaction are low and the stamp duty is avoided as well. The demat system in India allows you to maintain your shares and bonuses electronically in a better way.
3. Documents Needed For A Demat Account:-
First of all let me tell you that while going to open a demat account, you will need to sign up a contract with a stockbroker and submit the necessary documents like PAN card, Bank statement of last 3 months, your address Proof, your Income Tax Return, your color passport sized photographs etc. You might even need to self attest the requisite documents depending on the conditions imposed by the firm you are investing with. You might even be asked to deposit a copy of your cheque with the associated firm.
4. The Procedure of Opening:-
You just need to catch up with a broker first. You may catch up a broker or sub broker like the one from KARVY, angel broking etc. And then they themselves will tell you the whole procedure. You just need to submit them the desired amount as well as the associated documents for it. This account is mainly used for share trading and there are minimal yearly maintenance charges associated with it.
You can use it to transfer your shares, to sell your shares or all the procedures that a share trading follows.
5. Stay In Touch:-
While trading with your DEMAT account, remember to stay in touch with the associated broker and keep on asking him about the offers and demerits that are associated with it. You can manage it daily from the concerned office as well as you can manage it sitting at home also. You can get the phone assistance as well. You can even learn up the shortcut keys of selling and purchasing from the associated firm and you can even ask for the toll free number of the company from the associated broker or sub broker.