If you want to become a trader or investor in the stock or other securities market then you should know about a Demat account. Before you start to deal in the security market, you need to open a Demat account first. If you do not have opened this account then you won’t be able to deal in the stocks. However, if you want to open this account then there is a series of steps that you will require to open a Demat account.
The steps given below are required to be followed to open a Demat account:
- In the very first of opening a Demat account, you need to select a depository participant. A depository participant can be referred to as a platform that open and maintains your account. There are various participants in the market that allow the opening of your account. However, before you choose such a participant, you need to give a read to their terms and conditions and choose the one wisely.
- Once you have chosen a DP, in the second step, you are required to submit your Demat account form. A Demat account form is like a basic form that will require you to fill in all your details that are required to open such an account like PAN details, name, DOB, bank details, etc.
- After the fulfillment of the second step, in the third step, you will have to comply with know your customer norms, in short, you need to get your KYC done. In this step, you will be required to submit scanned copies of evidence documents of the details that you have filled in your Demat form. Such evidence documents can be identity certificates, PAN cards, DOB proof, residence proof, etc. Once, you have provides these scanned copies, your KYC will be done.
- In the fourth step, you will be signing the agreement copies. Once you sign these copies that will mean you do agree to all the terms and conditions of the DP. Therefore, it is advisable to read such terms and conditions before you sign any agreement.
- Once you have performed all the steps mentioned above, your account shall be processed by the DP. The details you filled in the form shall be matched with the scanned copies of the proofs that you have provided. Once all things are found in a line, your account will be opened and you will be provided with a BO ID. It stands for the beneficial owner identification number. If you do not have this ID then you won’t be able to have access to your Demat account and buy or sell shares.
These are the steps that are involved in the opening of a Demat account. If you want to know more about a Demat account, you can visit 5paisa and access more information related to this account. However, while opening such an account, there is a strong need that you should read all the terms and conditions. Also, while uploading the scanned copies of proofs, you upload the right and correct ones.