Anyone if, wants to invest in stocks then he or she has to perform the very first step which is to open a Demat account. A lot of platforms provide the option of best Demat account in India. This is a basic account or a medium through which one can deal in securities like shares, units of mutual funds, debentures and many more securities. This account will help to ensure the security of all the financial transactions side by side will perform the feature of easy handling and maintenance.
The process of opening this account has been mentioned as follows:
- First of all the investor has to decide upon the DP which can be any of the bank, broker or the institution with which one wants to open the account. Several factors affect the choice of DP like charges of brokerage, maintenance charges and many more things associated with it.
- After this one has to submit the account opening form along with a KYC. One has to attach various documents like residence proof, ID proof, banker and passport size photos with this form.
- The individual must also make sure to carry the original copies of all these documents for verification. The investor might also have to carry a cancelled cheque for the details of the bank.
- After this an agreement has to be signed. This agreement will include all the rights, regulations related to the account. One must read them carefully and one must clear all the doubts as soon as possible. After the submission of this to the DP, it will be signed by the concerned authorized person and a copy will be sent to the investor.
- Then the account will be opened and the individual will receive a unique client-based ID from the DP. The individual will also get access to the online account.
- The instructions lips will also be issued by the DP which can be used for transactions of transfer and purchase.
- There is no need to maintain any kind of minimum balance of shares in the Demat account. An investor can also hold more than one account from a single PAN card but the condition is that it should not be with the same DP.
Opening the account online:
This kind of account can be opened online very easily. One just needs to visit the website of the DP and then click on the create Demat account button. Then various personal details like City, name, email, age, mobile number are to be entered. After this one will receive an OTP which has to be entered and then one will get the communication from the DP after doing all the above formalities. The DP will give the details like DPID, account number and other things which will be essential for IPO.
The opening process of account is very easy and anybody can do it. With the introduction of technology all these processes have further become easy and now can be done online from anywhere and at any time.
