Investing in equity has gained tremendous popularity across India. More retail investors are showing interest in stocks to earn higher profits compared to other investment options and multiply their fortune over time. However, new investors may initially face challenges given they aren’t well-versed in the investment process. For example, most beginner investors don’t know how to open a Demat account or why it is important.

In this post, we will disclose all you need to know to get started!

The majority of Indians have shifted from traditional FDs to advanced alternatives – stocks and shares, eventually increasing the number of Demat accounts nationwide.

Furthermore, opening a Demat account has become a new trend in the recent past owing to the benefits they offer. In 2021, there were approximately 10.7 million Demat accounts opened in India singularly.

If you are also interested, we have put together the steps to successfully open a Demat account.

Let’s get started!

 

How to Open a Demat Account

Follow these steps to get started:

1. Choose a Depository Participant (DP): For opening a Demat account, you need to select a DP first. It can be an authorized broker, financial institution, or a bank. Consider annual fees, brokerage charges, and leverage offered before choosing any.

2. Account Opening and KYC Form:- Fill in the required information and submit your account opening and KYC form. With these forms, also attach copies of your:

  • Identity proof
  • Residence proof
  • PAN Card
  • Passport-size photographs​​​​​​​

You will need the original copies for verification procedure along with a canceled cheque for dividend bank details.​​​​​​

3:- Sign the Agreement:- Read carefully and then sign the agreement mentioning all the terms and rights concerning holding a Demat Account. Once submitted to the DP, the agreement will be signed by an authorized person and you will get a copy of the same.

4:- Customer ID:- Once the agreement is in place, you will get a unique Customer ID from your DP. use it to access your Demat account. Also, ask your DP for instruction slips to use them later for depository services such as purchase, transfer, purchase, and more.

 

Note: Remember you DO NOT require to maintain any ‘financial securities’ or ‘minimum balance’ of shares in your Demat Account. Moreover, you are allowed to hold multiple Demat Accounts linked to one PAN (but DP should be different)

 

Now that you know the procedure, get set & open your Demat account to start making profits now!