How to open a Demat

A step-by-step guide

Introduction

A Demat account is like a bank account, except it holds financial securities. It is a prerequisite for anyone who wishes to invest in the stock market .

Opening Demat Online

The digital platform has simplified and quickened the process of opening a Demat. Now investors can open a functional Demat within one or two business days online.

Types of Demat

There are three major types

Regular Demat Account, Repatriable, Non-repatriable

Depository & Participants

One can compare a depository with a bank, and it holds financial securities. In India, two agencies, namely, CDSL and NSDL, play the role of depositories A depository participant (DP) is a stockbroker.

What is a trading account?

To buy and sell securities, investors need a separate trading account. It holds financial securities for transactions, separate from assets in the Demat, which are for long term investment

How to open a Demat account?

The process begins with selecting a depository participant, a stockbroker. Select one with a proven record, transparent policies, and competitive charges.

Investors need to fill up the account opening form and complete the KYC norms to activate a Demat account.

Proof of Identification

IDs issued by a state/central government, Aadhaar card, Passport, Driving License, Voter Id, and PAN are accepted as valid identification documents.

Proof of Address

To prove resident status, one must submit proof of address. Passport, Voter Id, Ration Card, Bank statement or passbook, telephone or electricity bill are some of the accepted address proof documents.

Proof of Income

Investors need to disclose their financial status by submitting proof of income like ITR filing, bank  statement, salary slip, a CA’s certificate of net worth and more. Get a complete list of documents  needed for Demat account

Demat Account Charges

There are certain charges that investors need to pay to open and maintain a Demat account. Since charges can impact the return on investment, select a DP who offers competitive charges

Demat  A/c Number

When a Demat account is open, you get a 16-digit unique Demat account number, like your bank account number, which allow you to invest in the financial market.

And explore the benefits that come with the Angel Broking Demat accoun

Open Demat Account with Angel Broking