How to Open a Demat Account in India
Getting in touch with a registered depository: In order to open a demat account, you’ll have to first get in touch with a registered depository participant (DP)., Download the Forms., Wait the turn-around Time., Nominate your Nominee., Trade.
Step-by-Step Guide
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Step 1: Getting in touch with a registered depository: In order to open a demat account
For a list of registered DPs, visit the NSDL (National Securities Depository Limited) or CDSL (Central Depository Services Limited) websites. -
Step 2: you’ll have to first get in touch with a registered depository participant (DP).
Download or collect the account opening forms from the respective DP’s office or website.
Fill up the requested details in the account opening form and provide the necessary signatures.
Affix photographs and submit a copy of PAN Card, proof of address,bank statement or other documents as required by the company. , It usually takes about a week or two for the welcome kit to reach you depending on different company policies.
A Demat account can be opened with zero balance in your account.
There is no compulsion to maintain a minimum balance either. , It is important that you add a nominee while applying for a demat account.
Check and double check the nominee details for accuracy.
This will enable the nominee to receive the benefits of your securities in the event of exigencies.
After opening an account, the DP will allot you a beneficial owner identification number that will be needed for all future transactions.
When you wish to sell your shares, you need to coordinate with your broker and give a 'Delivery Instruction' to your DP.Your account will then be debited with the number of shares sold by your DP.
You will receive the payment from your broker. , Similarly, when you want to buy shares, inform your broker.
The shares that you bought will be credited into your account by the DP.
You can also use the trading account linked to your demat account to buy and sell shares online.
The DP will provide periodic statements of your transactions -
Step 3: Download the Forms.
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Step 4: Wait the turn-around Time.
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Step 5: Nominate your Nominee.
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Step 6: Trade.
Detailed Guide
For a list of registered DPs, visit the NSDL (National Securities Depository Limited) or CDSL (Central Depository Services Limited) websites.
Download or collect the account opening forms from the respective DP’s office or website.
Fill up the requested details in the account opening form and provide the necessary signatures.
Affix photographs and submit a copy of PAN Card, proof of address,bank statement or other documents as required by the company. , It usually takes about a week or two for the welcome kit to reach you depending on different company policies.
A Demat account can be opened with zero balance in your account.
There is no compulsion to maintain a minimum balance either. , It is important that you add a nominee while applying for a demat account.
Check and double check the nominee details for accuracy.
This will enable the nominee to receive the benefits of your securities in the event of exigencies.
After opening an account, the DP will allot you a beneficial owner identification number that will be needed for all future transactions.
When you wish to sell your shares, you need to coordinate with your broker and give a 'Delivery Instruction' to your DP.Your account will then be debited with the number of shares sold by your DP.
You will receive the payment from your broker. , Similarly, when you want to buy shares, inform your broker.
The shares that you bought will be credited into your account by the DP.
You can also use the trading account linked to your demat account to buy and sell shares online.
The DP will provide periodic statements of your transactions
About the Author
Nancy Jimenez
Writer and educator with a focus on practical organization knowledge.
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