How to open a Demat account online?
May 24, 2021
iCrowdMarketing powered by iCrowdNewswire
A Demat account is an account that lets its holder store shares of a company in electronic form. Banks here act as a bridge between investors and depository. The mentioned account number is required for every transaction that takes place. Things required to access and operate a mentioned account are a working internet connection and transaction password. Buying or selling of shares is promptly confirmed once the transaction is made. The whole idea behind adopting mentioned account was to eliminate the system of paper shares. With the advent of computers and the internet, it became a lot easier to maintain a Demat account. It also magically reduced the time taken in the transfer of shares or bonds thus making the whole process more efficient. In this article, we will deal with how to open a Demat account online.Steps to open a Demat account:
1) Choose the right depository participant: Keeping in mind the needs and wants customers can select the depository participant best suited for them. A good majority of financial institutes offer this service.
2) Filling up form: Demat account opening form is to be filled with all the details asked. Copies of essential documents must also be ready side by side.
3) Inspecting T&Cs: After filling the form a set of terms & conditions is presented. Those are to be read thoroughly and see if the customer does not have any objections. If there are not any then the process can move forward.
4) Verification: After carrying out all the above-mentioned steps verification is required. The customer would get a call from one of the members of the depository participant to cross-check all the information provided in the form that was filled.
5) Gaining access: Once all the steps and processes are completed the customers would get a Demat account number and a unique id. These details can explicitly be used to access the Demat account.
There are several types of fees that are charged for opening and maintaining a Demat account. Some of which are listed below:
- Opening fee: This fee is charged when the account is opened for the first time.
- Maintenance fee: This fee is charged either every year or per month basis. Some firms charge this fee in advance. This fee is also known as the folio maintenance fee.
- Transaction fee: This fee is charged for every transaction that is made. No matter how insignificant. The fee differs from buying to selling. This varies from platform to platform depending upon how much they charge.
Documents required to open a Demat account:
- PAN card.
- Address proof.
- Identification proofs such as an Aadhaar card or voter id card.
- Statement of bank accounts for the last 3 months.
- Return file of income tax or the salary slip.
- Passport-sized photographs.
Conclusion:
In the quest for trading shares, there have been many revolutionary changes. These changes have changed the course of the stock market drastically. Especially with the advent of computers and the internet Demat account has become a new way to hold shares. If you want to be a part of this revolution, open a Demat account with 5paisa.
Tags: English