Demat Account Opening Procedure
- For open Demat Account , Contect Depository Participant they will provide you Account Opening form Either Offline you fill form , Sign and send back to DP Officers or they provide you Online Account Opening Link where you can Fill online form and submit with Digital Sign with help of Aadhar Number
- Depository Participant provide you rules and regulation and account opening & other charges mention sheet you can go through it before sign
- In- person verification compulsory for offline as well as online Account Opening – DP Officer either visit you and ask requirement document for in-person verification or they will ask you online in-person verification with help of Laptop or Computer cam
- Once your account opening process complete they will ask for POA FORM( Power of attorney Form ) they will required that form when you sell stock which in your demat account with help of POA they will payout stock to exchange.
- As soon as your DP Account opened Depository Participant provide you Account number with Client ID.
- Now you can held your investment documents like equity , debenture , ETF , MF digitality in your DP account.
- SPEED-e by NSDL and Easiest by CDSL will help you to managed your DP account online.
Before opening a demat account, you should know following Information.
FAQ (Frequently asked Questions): Things to know while opening Demat A/C
- What is Demat Account?
- Why Open Demat Account?
- How Demat Account Works?
- What are the Documents Required to Open a Demat Account?
- What are the Charges for Opening Demat Account?
- Which is the Best Online Discount Broker in India?
- Is Free Demat Account Possible?
- How to Open Demat Account Online in Zerodha?
What is Demat Account & Why is It Needed?
Where investor can hold there Physical Share certificate, Exchange traded fund , Mutual Fund or other financial document in digital / Electronic formats. With help of Demat you can digitally secure your physical Certification into Demat form.
Demat is known as Dematerialisation. Its process of Transfer share certification from Physical to Digital (Electronic form) format.
Demat Account holds all your physical certificate in to Digital format. It’s one type of your Bank account where you can save your certificate and other financial documents, Exchange traded funds in Electronics formats.When the shares and other securities are dematerialisation their account are kept and maintained in the Demat account of Depository Participants. DP is authorised by CDSL /NSDL to operate Demat Account.
Read more: What is Demat Account?
Why to Open Demat Account?
If you want to invest in Equity ,Mutual Funds, Initial Public Offer (IPO), Exchange Traded Funds (ETF) – Index & Gold, Bonds, Non Convertible Debentures (NCD) you required Demat Account. Its very difficult to hold shares in physical form due to lots of paperwork and risk of fake shares. So its very useful and recommended that we should hold equity shares and other investment product documents in demat form.
Also after 2002 Demat account is must if you want to trade in Equity market in cash segment in India. NSDL & CDSL two depository in India provide Demat services.
NSDL – National Securities Depository Limited
CDSL – Central Depository Securities Limited
All shares are held by various depository participants either in NSDL or CDSL. Both depository managed your all equity and other investment product details in your DP account.
How Demat Account Works?
- Depository – NSDL / CDSL work like Bank – you can held your investment securities in digital form
- You can use services by open account with anyone approved Depository participant like Zerodha / HDFC Bank / SBI Bank / Icici Bank / Motilal Oswal etc
- By online facilities of Depository – SPEED -e ( by NSDL ) & Easiest ( by CDSL ) you can use your dp account online
- You can use transfer shares offline also with help of your DP service provider – Instruction Slip
- You can also provide POA to your Broker for standing instruction of you sell quantity stock transfer from your DP.
Read more: How Demat Account Works?
How to Open Best Demat Account for Trading?
With Aadhar number you can open Demat account online instantly. Before selecting DP ( Depository Participant ) check their other services and compare their cost too.
After Selecting best Broker and Depository Participant you can process open DP account two way
- Online ( with Aadhar Number )
Documents Required to Open a Demat Account
Below list Documents are required for open Demat Account
- Pan Card
- Aadhar Card (For open online Demat Account Aadhar number is compulsory)
- Bank Account Details (MICR code required for online transfer) – Cancel Chq or Bank statement
- Passport Size Photograph
- Proof of Resident (All Gov approved Documents are eligible for proof of Resident Address)
- Identity Proof (All Gov approved Identity Proof acceptable)
Demat Account Opening Charges
We Strongly Recommended that before selecting Depository participant check their trading and Demat Account charges list.
Every Depository has own Trading and DP account charges and Commission Structure. Such as
- Account opening Charges
- Annual Maintenance Charges
- Brokerage Charges
- Dp – Slip / Instruction Slip Charges
- Dematerialisation Charges
- POA Charges
- Pledge / Un-Pledge Charges
Which is the Best Online Discount Broker in India?
There are many discount brokers in India, Investor have to choose right stock broker based on their requirement. We will try to help you here give points keep in mind for choosing the best online discount broker and give also you a list of top 10 discount stock brokers in India.
Is Free Demat Account Possible?
Brokerage is Main Components in investment or trading Cost. Every trader and Investor looking lowest brokerage from their broker to cut down cost that will help them to low their BEP which gradually help them increased their ROI. Now Days, So many broker offer Zero Brokerage Plan but its really Zero or hidden charges set-off zero brokerage?
Zerodha offer Zero Delivery Brokerage in all investment products
Zerodha is Pioneer in Discount Broker in India. Who provide Zero Delivery Brokerage in NSE & BSE. lowest brokerage 0.01% or Rs.20 whichever is lower per order in other segment.
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Zerodha Coin offer you direct mutual fund investment option where you can save upto 28 lacs in 25 yrs.
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With 22 Branches and more than 100 Partner Office Zerodha has Pan India Presence.