Nowadays, it is seen that there is an immense increase in the knowledge about the stock market among the people. So it might be very obvious that you all might have come across the word Demat account these days. Demat account is a medium through which the person can hold stocks and securities in the share market like bonds, government securities, IPOs, exchange-traded funds, etc. This account will ensure that all the financial investments are maintained in the best way.
To open Demat account, the person needs to follow certain regulations. Let’s have a look at them.
- Choose the depository Participant: First of all the person needs to select the right depository participant that will open the person’s Demat account with them. Mostly the banks, stockbrokers, and online investment platforms provide the opportunity of getting DP services. It is highly advisable to select the depository services according to the requirement of the person.
- Submit Demat account opening form: The most important step in this procedure is to fill up the account opening form. Both of the depository participants will open both trade and Demat accounts. For this, the person needs to up all the details that are asked from him there.
- Fulfill Know your customer norms: Nowadays all the process of opening the Demat account is done online. So the people need to submit all the details regarding it properly so that the overall process can go smoothly. This process will require the scan copies of important documents like identity proof, address proof, bank account statements, and even proof of income. All these documents are uploaded online and once everything is verified, the account proceeding will be done.
- Go through the verification process: This is the most important step that will either open the account immediately or the application can get rejected. Soon after the requisite documents are submitted, there will be a person verification done. This is a mandatory step that will authenticate all the proofs that are attached along with the form. For this, there will be either video calls or voice calls. The person whose account is to be opened needs to attend it.
- Sign agreement copies: To complete the overall process of verification and account opening, the person needs to sign an agreement with the depository participant. It will contain all the rights and duties provided by DP to their investors. Here if the person has any query must clarify with the DP’s team right away.
- Get your BO ID number: Once the signing of the contract is done, the DP will proceed to the final step of account opening i.e. the unique Beneficial Owner Identification Number. This is the number that will be used to access the Demat account.
So it can be seen that the process of opening the Demat account is quite simple. The person can even take the help of a trusted platform like 5paisa which is an online leading platform that helps in opening the Demat account within few minutes. Not only this, they will provide the customers with the facility to manage their portfolio and get to know about the performance of the investment in the market.