Earlier, buying and selling of shares were done by being physically present at the exchanges. Today, with the advent of digitalisation, shares no longer need to be tangible assets. They are dematerialized, making it much easier for everyone to buy and sell them.
To start investing or trading, you must first open a demat account that will let you hold your shares in a dematerialized format. You must also have a trading account to execute any transactions on your shares. Here’s where it becomes important to know more about how to open a demat account and how to use a Demat account.
Today, with many market players offering deals that let you open a free demat account online, this process has become easier on the pocket. Nevertheless, let’s get to know the details of how to open a demat account.
How to open a Demat Account Online?
Today, opening a demat account is just a few clicks away because most depository participants have made this facility available easily online. Here’s a quick walkthrough that will detail the steps involved in opening a Demat account: .
Step 1: Select a Depository Participant
The first step to opening a demat account is to select the DP you wish to open your demat account with. Many DPs now also allow you to open a free demat account online. So, check out if there are any such offers. Compare the fees and the features of the demat accounts offered by different DPs and choose the one that best fits your needs.
Step 2: Submit the necessary paperwork
Once you’ve chosen your DP, you need to fill in the demat account opening form offered by them and submit it. Along with this, you will also need to submit the copies of the required documents. These KYC documents include identity proofs like PAN card, Aadhaar card, and passport, address proofs like passport or Aadhaar card, and a passport-size photograph.
Step 3: Get the In-Person Verification done
After you’ve submitted your application, an In-Person Verification (IPV) will be carried out by the DP, where they send an official over to verify the validity of your details in person. This is a necessary step in the process of opening a demat account.
Step 4: Get the details of your Demat account
Once the IPV is complete and your application has been approved, the DP will give you the details of your demat account. This includes specifics like your demat account number, your client ID, and a temporary password or a link to set your own password. You can use these details to log into your account.
Conclusion
A Demat account is mandatory if you wish to trade in the stock market. So, ensure that you know all about how to open a Demat account and how to use it before you begin trading. Then, you can confidently take trading decisions and keep an eye on your account seamlessly.