How To Open A Demat Account?

How To Open A Demat Account?
Demat Account or dematerialized account holds all the investments an individual makes in shares, government securities, exchange-traded funds, bonds and mutual funds in one place. This account is needed to hold the stocks in electronic format.Demat account functions like a bank account.

Know how to open a demat account:

How to open a Demat account?
If you want to open a demat account, you can obtain the application form from any Depository Participant (DP). The DP selected should be registered with Depository and SEBI. The duly filled application form along with PAN Card and Proof of Address can be submitted to the DP.

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Documents
Documents
Any of the following documents are accepted as Proof of Address:

Passport
Voter ID Card
Photo Identify Card issued by Central Government / Statement Government / Statutory bodies / Banks / Public sector undertakings / Colleges affiliated to universities
Credit card statement
Debit card statement
Bank passbook
Ration card
Electricity bill / Residential telephone bill (not older than two months)
Leave and Licence agreement
Verification
Verification
At the time of submission of documents, the DP may request you to show the original documents for verification. You have to enter into an agreement with DP in the standard format, which gives details of rights and duties of investor and DP.

Agreement
Agreement
The applicant will get a copy of the agreement and schedule of charges for future reference. After submitting the requisite documents and signing the agreement, DP will open the account and give your 16 digits Demat account number (8 digit DPID and 8 digit Client ID) to you. This number is also called as Beneficial Owner Identification number (BO ID). All your purchases and investment in Securities will be credited to this account.

Multiple demat accounts
Multiple demat accounts
When you sell your securities, your demat account will be debited. If you wish to have more than one demat accounts, you can have multiple demat accounts. 6 Biggest Mistakes Stock Market Investors Makes

Fees
Fees
The applicant can choose the DP as per his or her convenience. There is no rule to open DP account with your stockbroker. The applicant need to pay for

Dematerialisation and Rematerialisation of your securities
Annual account maintenance charges
Transactions fees

One Reply to “How To Open A Demat Account?”

  1. I am a senior citizen and My finger prints are not readable.Same problem with many others.Aadhaar card centers say to use eyes.But there are no iris scanners.What is the solution?

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