Opening a demat account is the first and foremost step to start trading in the Indian stock market.A demat account allows you to hold the shares in digital form.Nowadays, opening a demat account has become a prerequisite for stock market investments. Here are a few tips on how to open a demat account.
Things You Will NeedPAN card, address proof, online bank account
Step 1The initial requirement for opening ademat account is that you should have bank account with internet banking facilities. All private sector banks provides the facility to open an internet banking account while majority of public sector banks offer this. However, compared to private banks account maintanance fee will be less in nationalised banks.
Step 2You can open a demat account either with a bank or with a stock broking house. They act as depository participants intermediating between the depositories Ã¢Â€Â” CDSL or NSDL and the investor.
Step 3The fees charged for share trading services vary considerably among these depository participants. Account opening fee, Annual maintanance fee and trading fee are the three kinds of charges involved in operating a demat account. Generally banks charge more compared to share brokers.
Step 4As a first step, the account opening forms are to be filled by the applicant.You will have to provide your PAN card, a photo, and a proof showing your address along with the form. It usually takes 10 to 15 days to open the demat account once you submit the form. If you are opening your demat account in the same bank where you have your savings account, the opening procedure will be simpla as you are already known to the bank.