Before learning the steps on how to open Demat Account, let us first know what a Demat Account is.
A Demat Account, or Dematerialised Account, allows the electronic storage of stocks and other securities. Shares are purchased and maintained in a Demat Account while trading over the internet, making it simple for consumers to transact. Each person’s investments in mutual funds, bonds, shares, exchange-traded funds, and government-issued securities are kept together in a Demat Account.
NSE first made it available in 1996. Initially, investors had to go through a manual procedure for creating an account, which took a few days to be active. The Demat Account has reduced the chances of stealing and deception by holding stocks in digital form.
How Does a Demat Account Operate?
A Depository Participant (DP) can open a Demat Account on your behalf. You and Central Depository Services (India) Limited (CDSL), or the depository NSDL, are connected through the DP.
Following account opening, you may transfer shares from your actual share certificate to your Demat Account. You can purchase and trade shares, mutual funds, and other securities with the Demat Account. Following the close of business, your Demat Account will either receive credit for or debit for the shares.
Steps on How to Open Demat Account
One can now learn how to open a Demat Account in only minutes. Demat, which soared in popularity during the pandemic, has benefited from the entirely digital procedure. The following steps will let you know how to open Demat Account:
- Step 1: Do a Depository Participant Search
The first step on how to open Demat Account is to decide the DP with whom you wish to register a Demat Account. Think about the DP’s status and if it can offer the services you need.
- Step 2: Initiate the Demat Account Opening
After deciding on a DP, complete the online account opening form on the DP’s website. You must start by giving basic information like your name, email address, mobile number, etc. You must also include your PAN card information.
- Step 3: Add Your Banking Information
Step three on how to open Demat Account involves adding bank details such as account number and IFSC code. Providing account information is crucial because it is utilised to credit any cash owed to you. You may own shares of the company that issued them in your Demat Account, such as dividends and interest.
- Step 4: Upload Documents
In the next step, you need to upload a photo. Obtain a record of your identification and address proof documents to finish this process.
- Step 5: Complete Personal Verification: Read more...