How to Open a Demat Account?
When you come to the stock market, you need a Demat account to keep your shares. Whenever you buy a share it goes to your Demat account and when you sell a share it is debited from your Demat account. In this article, we will deal with all the processes and documents required to open a Demat account.
1. Choose your depository participant (DP)
Before you open your Demat account you need to find out the vendor with whom you would like to open such an account. There are so many depository participants in the market. Every one of them is unique in some way or the other. You need to choose the one that meets your needs and requirement.
2. Apply online
We live in a digitalized world. Everything has become digital. You can apply for your Demat account online. You just need to go to the respective website and fill a form. You will be asked about your name, contact information, e-mail id, etc. When you fill this form you will be contacted by the respective authorities who would guide you to the next step.
3. Know your customer (KYC)
KYC is mandatory to open a Demat account. In this step you will have to submit your identity proof like Aadhaar card, Voter Card, Driving License, Passport, etc. Any document that proves your identity would work. You may also be asked for your address proof, bank statement, and income proof.
4. Verification Process
After you have submitted all the details, it's time for verification. This is an In-Person Verification process. Many DP requires you to visit their center with all the documents. However, things have become online now. You may also use your webcam for this process. They need to verify that it is you only who is applying for account opening.
5. Get your Demat account
After all these steps are completed, you will get your Demat account within a few days. Once you get your Demat account you can start your investment journey.
Advantages of having a Demat account
- Safety: With a Demat account transactions of shares become quite safe. You don't have to worry about a fake share certificate.
- Convenience: Storing physical shares can be a nightmare. With a Demat account, you can rest assured that all your shares are in one place.
- Accessibility: Since all the details about your shares and Demat account are available online, you can access them from anywhere.
- Lower charges: Nowadays with the advent of a discount broker, the charges associated with the Demat account have decreased dramatically.
- Multiple securities: You can use your Demat account to store bonds, mutual funds, and many other securities that you buy.
To sum up
Investing in the stock market is an easy way to become wealthy. All you need is a Demat account. There are so many brokers out there in the market, however, 5paisa stands out from them. If you want to avail exclusive benefits you should open a Demat account with 5paisa.