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How to Open Demat Account With an Authorized Depository Participant

Author: Aniket Sharma
by Aniket Sharma
Posted: Nov 28, 2016

Opening a trading account is a matter of few seconds, however verification and account activation takes some time. When you start with online trading, how to open a demat account is an obvious question. Check how you can proceed for trading account, what documents you need and charges involved.

For the first time investors in stock trading, the most important lesson is to make your transaction secure and keep the track of all trading details. This can now be easily managed by consulting a broker, however to stay independent on records and timely updates, Demat accounts are made essential for the traders. Opening a demat account is the first step to start with stock trading.

Demat account is the centralized account that keep the details of all the transactions, traded securities, certificates and documents. This account also serves as the common account for managing multiple investments like mutual funds, Bonds, shares and other securities. The major question is How to open Demat account? Let see how Depository Participant helps in opening your demat trading account.

How to open Demat account

Demat account are opened with a DP or Depository Participant. These are the authorized Financial institutes that act as a mediator between the trader and Central depository ( i.e. NSDL and CDSL). When you open demat account with a DP, it is automatically added to the central depository that manages all the Demat trading accounts. Here are quick steps to open a demat account with a DP:

The first step is to select the DP, which is generally a Bank, a financial institution or a broker

You can get the account opening form from them, these forms are also available online depending on the DP’s accessibility.

You can read carefully and fill out the form. Sub/mit this form with the required documents and passport size photographs.

Make sure you keep the original copies of all the attached documents, as it will be needed during verification.

Secondly, the DP will provide you the with the additional document covering the ‘terms of agreement’, Rulea and regulation form and format for charges incurred.

Once you submit and agree with the documents, a Verification Process will be conducted. The executive of the DP will schedule the verification and check the information and original documents.

After a clear verification, the application is forwarded and you will get the Client ID and account number from the DP.

Documents needed to open trading account

Once you receive the details, you can successfully login online and access the account. The important documents needed are:

Proof of Identity: Can be PAN card, Passport, Voter ID or Driving License.

Proof of Address: Can be Bank Statement/ Passbook, Passport, Voter ID, Ration card or Driving License

3 passport size photographs

XYZ suggest informative guidelines on financial securities, trading and online transaction with assistance on how to open demat account, its tips and benefits.

About the Author

“If you don’t set a baseline standard for what you’ll accept in your life, you’ll find it’s easy to slip into behaviors and attitudes or a quality of life that’s far below what you deserve. "

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Author: Aniket Sharma

Aniket Sharma

Member since: Mar 23, 2015
Published articles: 11

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