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Easy Steps To Help You Open A Demat Account
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A demat account goes a long way to invest your funds and earn good returns. No doubt there are plenty of risks involved, but the returns are equally high. So before you ask yourself, how to open a demat account, here are a few easy steps that can help you get started:
1. First, you will need to fill out the form for the account opening. You will also need to submit copies of certain required documents along with the passport sized photographs.
2. One you begin the application process, you will be provided with a copy of the rules and regulations and terms of the agreement along with the charges you will incur during any trading.
3. Anytime during this process, an in – person verification will be carried out. A member of the depository participantteam will contact you to verify the details you have provided in the form for the account opening.
4. Once the application is processed, your depository participant will provide you with an account number or client ID. You can use these details to access your demat account online.
5. You must remember, as a demat account holder, you would need to pay certain fees on a timely basis. These fees include annual maintenance fee levied for maintenance of account and the transaction fee that is levied for debiting securities to and fro from the account on a monthly basis. These fees will differ from each service provider which is also known as the depository participant.
6. A demat account can be opened with no balance of shares. In addition to this, there is no requirement that a minimum balance of shares be maintained.
What are the documents required for the opening of a demat account?
There are certain set of documents one would need to submit when opening this account. The standard set of documents include proof of identity, address, passport size photograph and the account opening form. Normally, you will only need to submit copies of the documents. However, some institutes will request the originals for verification. Here is a list of documents you can provide for each factor:
• Proof of identity: PAN card, voter’s ID, passport, driver’s license, bank attestation, IT returns, utility bills, or any ID card with the applicant’s photograph and a government seal.
• Proof of address: For proof of address, you can submit your ration card, passport, voter’s ID card, driving license, bank passbook or even your bank statement. You can even submit verified copies of your utility bills, telephone bills or any identity card with your address and the government seal.
• Demat form: you will need to request a Demat form from your financial institute or bank and fill in the relevant details. You will need also need to submit your share with a physical share receipt. Once the form is approved, your demat account will automatically be updated to reflect your dematerialized shares.
Now that we have answered the question on how to open a demat account, you can easily start investing in shares easily.
Author Bio :- Neha Sharma is finance student who loves to write during her spare time. She has considerable information about the demat account. Through her work, she has provided information on how to open a demat account to invest your funds in.
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