Trading in the Indian stock market needs a Demat account, and the money to trade. Demat account is the short form of Dematerialized account. Demat account keeps the electronic list of one’s shares in the stock market. It is the sole thing needed to buy and sell stocks and shares.
If one is wondering as how to open Demat account following are the given procedure of opening a Demat account:
- Demat account can be opened with any registered DP or depository participant.
- One who is wondering how to open Demat account should get a list of registered DPs in the websites of National Securities Depository Limited and Central Depository Service Limited.
- The willing person should fill an account opening form.
- The customer should submit attested photocopies of his/her details.
The documents needed are:
Identity proof – Photocopies of passport or pan card or driving license.
Residence proof – Photocopies of the above mentioned documents.
Account details given by the bank.
Photocopy of work permit.
• The customer should choose either Standard Rate Card or Frequent Trader Rate Card according to his/her trading volume.
• If the customer is willing to hold bonds in Demat form he/she can opt for Bonus Rate Card.
• When the customer is getting through as how to open Demat account he/she should the proper mode of investment suited, like PINS or Non PINS.
• A particular charge is to be paid for opening and maintaining the Demat account which varies according to DPs.
• The DP will allocate the customer with Beneficial Owner Identification which is also known as BO ID. This is needed to quote while making transactions.