To invest in the stock market, it is necessary to have a Demat account. Without this you cannot invest money in any IPO. Along with this, buying and selling of mutual funds, bonds, government securities etc. also requires a demat account.
This account can be opened through any Depository Participant (DP). In such a situation, the first question that arises is what is a Demat account. This account is like a bank account where you can save your shares after buying them. Whereas people keep money in the bank account. Demat account is mandatory for investing money in any IPO. Let us know how this account can be opened.
Know about the process of opening a demat account
In order to open a demat account, investors must first choose a valid Depository Participant (DP). This depository participant can be any bank. Apart from this, DP can also be a broker or financial institution. Different DP’s brokerage charges, annual charges are different. First of all, choose your DP to open a Demat account. After this fill a form for account opening and submit it.
This important document is needed to open a demat account.
To open a demat account, you will need Aadhaar card, PAN card, two passport size photographs as ID proof. Along with this, you will also have to give a canceled check in the bank. Then the bank will ask you to sign an agreement. Please read this agreement thoroughly before signing it. After this the bank will open your demat account. Then you will get a Client ID through which you can login to your Demat account. Along with this, you will also get an instruction slip which you can use at the time of purchase and sale of shares.
How to open demat account online
- If you want to open a Demat account sitting at home, then first of all visit the official website of that DP.
- After this click on Demat Account option.
- After this, you complete the further process of opening the account.
- Then upload the asked documents.
- After this, the account will call or message you to verify.
- After this all the details will be verified. After this your demat account will be activated.
- Lastly, you will get the Beneficiary ID or Demat Account Number.
- Now through this account you can invest money in the share market.
