Navnish Bansal tells us whenever you think of investing in stocks or trading in share market the initial step that you take is opening a Demat Account. A Demat account keeps all your financial securities at one place in electronic form. If you are going to invest in securities such as shares, shared funds, bonds, and so on you need to have a Demat account.
The Demat account involves electronic keeping of shares and securities which are maintained electronically. India embraced this system to reduce the danger associated with paper shares. Navnish Bansal says thatthe genuine intention behind the Demat system is to eliminate problems due to paper certificates and make the system much easier.
Instructions by Navnish Bansal foropen a Demat account online!! There are a few simple steps that you require to follow while opening a Demat account online:
Step 1. Select where you would like to open a Demat Account then pick the Depository Participant, you would like to open Demat account with. The majority of brokerages and banks offer the service.
Step 2. Fill up an account opening form and send along with copies of the defined files, and a passport-sized photograph.
Step 3. You will be offered with a copy of the rules, and guidelines, the regards to the contract, and for that reason, the charges that you will just sustain.
Step 4. During the procedure, an In-Person Verification would take place where a member of the DP’s personnel would contact you to inspect the details provided in the account opening type.
Step 5. You will be offered with a Demat account number and a client ID once the application is processed. You can access your Demat account online by using these details.
Step 6. Now you are a Demat account holder, and you would need to pay some costs as the annual maintenance charge imposed for upkeep of the Demat account and the transaction cost– imposed for debiting securities to and from the account on a monthly basis. Navnish Bansal tells us that in addition to this, you will have to pay some charges for transforming the shares from the physical to the electronic type or vice-versa.
Step 7. Minimum shares: A Demat account is typically opened without any balance of shares. It likewise does not require that a minimum balance be maintained.
Navnish Bansal 