Want To Open a Demat Account?
Are you worrying what basic knowledge is required to start trading in stocks or in IPOs? Moreover from the necessary knowledge and money, one has to open a demat account. As share market is growing rapidly, more and more people are talking about it and investing in share market. But let me tell you it is not an easy game, especially for a new investor. It is very important for the person to understand the basics of a demat account before investing in share market.
What is Demat Account?
Demat Account stands for a ‘Dematerialised Account’. It is must if you want to invest in shares, as most trades nowadays take place in electronic form. It is an account opened with a bank or a broking firm to buy and sell shares or invest in exchange-traded funds. A demat account holds shares in dematerialised or electronic form. It is clear that without having it one will not be able to trade in stock market as per SEBI rules.
Demat Account Opening Procedure:
Demat Account can be opened with any registered Depository participant.
Some of the DP
Some of the depository participants are given in the following list.
• ICICI direct
• Sharekhan
• UNICON
• Indiabulls Securities Ltd
• HDFC Securities Ltd
• Reliance Money
• Geojit BNP Paribas
• Kotak Securities Ltd
• Angel Trade
• SBICAP Securities Ltd
• 5Paisa
It can be opened with no balance of share. Also there is no minimum balance required to maintain it.
One who wants to open it should fill a demat account opening form. He needs to submit attested photocopies of his details. Other documents needed to open an account are:
• Pan Card
• Identity & Residence proof Photocopies of passport or driving license
• Passport size photograph on which you sign across
Depending on the DP, there may or may not be an opening account fee. There are four major charges usually levied on a Demat account: Account opening fee, annual maintenance fee, custodian fee and transaction fee. All the charges vary from DP to DP.
Once your account starts functioning, you will get a unique Beneficiary Owner ID from your service provider. This ID is a reference number and this id is used in every transaction. You will also receive a Delivery Instruction Slip (DIS) book. It is like a bank cheque book. A Delivery Instruction slip is used to give instructions to the service provider to debit your account and credit the broker’s account with the specific stock and share.
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