Demat account allows dematerialisation of stocks and reduces lots of paperwork hassles. Demat account holders can hold securities and shares in electronic format. Whether you trade online or offline, a demat account is a must.
The process of opening a demat account is quite simple. Check the brief process required for opening demat account in India.
You can open demat account by yourself or through an agent. Here is a process that will help you to open your demat account.
#1 Connect with registered depositories. You will get a list of the depositories from the official websites of CDSL as well NSDL.
#2 Visit the website of the depository and download the account opening form. You can collect the form manually from its office. Submit the form with necessary documents like PAN card and proof of address and bank account proof.
#3 Sign the agreement with your depository. Keep a copy of the agreement with you for your records.
#4 You will receive a kit very soon after you submit the form. There is no need for any minimum balance in the demat account. You can open with zero balance.
#5 Select your broker and inform your broker when you want to buy or sell stocks.
While you apply for a demat account, make sure you add your nominee details. Once you open an account, the company or depository will give you a unique identification number. This number is also known as Beneficial Owner Identification Number. Use your identification number for all your future transactions and communication.
You can start trading after you receive the account number or identification number. You can also more than single demat account.