For every trader, the SEBI, regulatory authority of the stock market has made the availability of the Demat account compulsory.
The meaning of the demat account is one that facilitates your option of selling and buying and also transacting without the requirement of any paperwork. It has been proved that demat account are protected, safe and easy to operate.
The opening of a demat account:
Below are given five tips,about how to open ademat account that are used while opening a demat account.
1: You are required to select some depository participant from some company.
2: You ought to fill up the form and necessary documents to be attached therein.
3: Form is to be submitted along with said needed documents. Demat account cannot be opened without pan card
4: An employee of depository participant will undertake verification in person
5: All information to be given regarding account number and other details furnished by depository participant.
The documents here required are an identity proof and an address proof. These days one also needs to provide aadhaar card as well as PAN card. One needs to provide copies of all the documents duly signed and self-attested by one.
For opening a Demat Account need of fees and documents
If you want to open a demat account, you are needed to pay an annual fee that is fixed and is considered as annual charge maintenance fee for the said account. Depository participants will also take charges as a fee for opening an account as per their sweet will. Nevertheless, discount brokerages do not charge any fee for opening a demat account as they do it online free of cost. In addition to maintenance fees the DP—depository participants take a variable fee on the basis of the transaction. They charge the fee either on selling or buying instruments,and they charge a fixed fee on per transaction or a percentage taken on your transaction size.
Documents needed for opening a Demat Account
Broadly speaking you need two kinds of documents for opening a demat account
1 Identity proof
In this kind of proof you need to have voters ID, pan card, driving licence, passport, aadhaar card.
ID cards must be with applicant’s photo which is issued by any authority of the state or central government or by its departments, regulatory or statutory authorities, public sector undertakings, public financial institutions, scheduled commercial banks, professional bodies like ICAI, ICSI, ICWAI, bar council etc. colleges affiliated to universities.
2 Address proof
In this category, you require having documents like passport, ration card, driving licence, voter ID card, electricity bills that are verified or telephone bills of residence, bank statement, bank passbook, documents of agreement for sale, leave and licence agreement.
After submission of all these documents and necessary fees one needs to submit them with the account opening form to the service provider,and in a limited period, the account is opened by the service provider if all the particulars in the form are in order.