After 1996, the share market in India when digitalized. Demat Accounts were introduced and opening of the same for dealing in shares and securities became mandatory. So if you want to trade in the Stock Market, then you have to open a Demat Account without which you cannot make any transaction in your name. Demat Account acts as your bank account. But here, what gets credited and debited are the shares.

 

Demat Account

This account is linked with your bank account so the transfer of money for the purpose and buying and selling becomes easy. Opening of the Demat Account is very easy and can be easily operated by the user anywhere. It just required an internet connection.

So how to open a Demat Account?

Here are the 5 Simples steps which makes opening of the Demat Account easy for anyone :-

Step 1: Select a Depository Participant (DP)

Step 2: Fill up the Demat Account opening form and attach all the required documents

Step 3: Submit and said form and all the required documents. PAN card is very much important for the opening of Demat Account and without this the procedure cannot be completed.

Step 4: A person from the agency (Depository Participant) you selected to open the Demat Account shall personally come for verification.

Step 5: After the verification, the Depository Participant shall provide you a user id and password for your account which can be operated only by you. This makes the entire system very much secure.

What is the Fees to open a Demat Account?

Charges which are levied on a Demat Account are as follows :-

- Account Opening Fees
- Annual Maintenance Fees
- Transaction Fees
- Custodian Fees

However these charges shall vary form DP to DP. But nearly there is hardly any difference between them.

What are the documents required for opening a Demat Account?

1. ID proof (PAN Card)
2. Address Proof (Adhar card, Voter id, ITR, Driving License)
3. Cancelled cheque
4. Recent coloured photograph
5. Income Proof (Last six months bank statement, ITR, Recent pay slip)

After the completion of the entire process, the user can at his convenience start trading by just one click. Things have become so easy that just a connection of internet can let the user to use the system very easily. All the guidelines are very well explained by the DP to the user and also helps the user if he gets stuck anywhere in between.