Today is the time when people are highly interested in investing their money in such a way that it can yield the best returns to the person in long run. The best way to invest money and get easy returns is to invest in the stock market. To start trading in this, the person first needs to have a Demat account. It is a process to keep all the dealing of the shares in electronic form.
Many people might ask a very common question related to the Demat account i.e. how to open a Demat account? So to answer this question, the person needs to follow the simple steps. Let’s have a look at them.
- Choose the depository participant: It is the very first step to open a Demat account in India is to choose the depository participant. Almost every stockbroker and online trading platform provide the facility of DP services. The person needs to choose the one that provides the services and features that will match the requirement of the person.
- Submit the Demat account opening form: Once the DP is selected, it is very important to visit their website and there look for the option of the open a new Demat account. Once the person selects that option, it will show the account opening form. In this, the person needs to fill in all the required information. It will be great if the person opens both trading and Demat accounts with the DP. It will make the whole process much easier.
- Fulfill all the norms of KYC: KYC stands for Know Your Customer, the person needs to fulfill all these norms. This process will include the uploading of the scanned copies of the documents like identify proof, aadhar card, pan card, bank account statements, etc. This will provide the system with all the information that is required by them to be known.
- Go through the verification process: Once all the information is uploaded successfully, the person needs to go through the verification process. It can be in person through a voice or video call. The person will be asked about all the information submitted before, He needs to answer it very well. Even the technology is so fast that the verification process is done through mobile phones.
- Sign the agreement copies: To complete the verification process, the person will be asked to sign the agreement with the DP. The agreement will contain all the duties and rights of both investors and the depository participants.
- Get BO ID number: This the last step in the process of opening a Demat account. Once all the approvals are done, the person will be provided with the Beneficial Owner Identification number that will help the person access the Demat account.
This is how the person can easily open a Demat account. It will be a great idea to open a 5paisa Demat account as this online platform will prove the investor with enough knowledge to carry out all the activities related to the trading of shares.
