Know how to open a Demat account

Demat account

Do you want to invest in the stock market or you want to fetch hefty profit on daily basis from intraday trading in the cash segment. They are short and long term goals of the investor or trader. If you do, then you may be curious to know about the process through which you can make investments in the stock market. Many people make money only through investments in stocks. A Demat account is necessary for any investment of this type. Here you have tips to open a demat account:

First step

To open a demat account, you must first approach a depository participant (DP), deposit agent and complete the account opening form. You will find a list of DPs on deposit websites. You must also have a PAN card and have all the original documents required for verification. You will be offered a copy of the rules and regulations, the terms of the agreement and the charges you will incur.

Second step

With your account opening form, you must attach photocopies of some documents as proof of your identity, as well as a test to open the demat account.

Third step

You must sign an agreement with DP in the standard format suggested by the depositary. It will offer all the details related to the rights and duties of DP and investor. You are allowed to receive charges for copying and programming the agreement that is intended for future reference.

During the verification process, a person who is a DP staff member will contact you to verify the details offered in the account opening form. Once the request has been processed, the DP will offer you an account number or customer ID. You can also use the details to access your demat account on the Internet.

As a demat account holder, you will have to pay a certain amount such as annual maintenance fees to maintain your account and the transaction fee that is applied to the collection of securities each month from and to your account. These rates tend to be different.

Fourth step

During this stage, the DP will open a demat account and offer you an account number. This is also known as the actual beneficiary identification number. All investments will be credited to this account. In case you sell your securities, the Demat account you own will be debited. You can have numerous demat accounts in case you wish. You can decide your DP according to your own suitability and have no obligation to open a DP account with your broker. If you want to hire the services of Best Stock Broker in India, then these are the basic steps from where you can start.

The dematerialization of the accounting treatments becomes commonplace, inevitably

Despite the crisis, the dematerialization market is doing well, and we have seen the growth of more than 20% per year on average for several years. All economic actors are concerned, and dematerialization is sometimes imposed in relations with certain organizations.

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