The demat accounts that are also known as dematerialized accounts help the investors in keeping track of the certificates of share, mutual funds, bonds, and other securities and hold them in an electronic format. The demat account helps in performing a document-free trade and transfers. As per the market regulator the SEBI it is compulsory for every trader and investor to have a demat account. It can be opened with any of the two institutes which are known as NSDL and CDSL. The shares are now provided in soft copy format which is required to be parked in the Demat account of concerned investor or trader. The demat account opening is also a simple process where one needs to give a few documents, and in a couple of days, the account gets opened.
You can get all the demat account related information from bestdemataccounts.com. It is one of the best sites to get all your demat account related queries solved. If you are looking at information on how to open a demat account, here’s a look at the procedure:
- Select a depository participant
The first step in opening a demat account is to choose the depository participant you wish to open the account with. This entity serves as an intermediary between you and the depository. The DPs can be anyone from banks and brokers to online investment platforms. Most of the DPs are registered with CDSL, BSE, NDSL, and NSE.
- Submit the KYC documents
You need to submit the form given to you for opening an account along with the KYC form, a passport size photograph, PAN card and other photocopied documents. During this point, the account holder will be asked to name a person as a nominee who will be assigned with the responsibility and ownership of your shares if something happens to you. The choice of nominee can be changed later if the need be by refilling the same form. The KTC form also has the depository participant and investor agreement which comprises of terms and agreements, rules and regulations, and the charges you are supposed to pay for the demat account. The form also includes the DP’s duties and rights of the investor.
- Appear for verification
The in-person verification might be carried out by a person from the DP’s firm to make sure that the details you have provided in the form are authentic.
- Beneficiary owner identity
Once the application for demat account opening has been processed, and the DP has facilitated the opening of the account, they will provide the account holder a beneficiary owner identity which is a unique account number that can be used during future transactions and to access your account.
One also needs to open a trading account with a demat account so that they can immediately begin to buy and sell the shares.
Thus, with these simple procedures, you can open a demat account. It is the beginning of a hassle-free investing experience which comes with no risk of theft and issue of storage.