Retail investors are increasingly considering equity investment to make profits which ultimately leads to wealth creation. Over the years, the Securities and Exchange Board of India has diligently shifted the investing process from physical to digital. With the advancement in fintech, an investor can conveniently buy and sell shares and securities in the stock market with a few clicks on his mobile or laptop with help of a demat account. It has given tremendous freedom to investors to trade from anywhere in the world in the Indian and global markets.
Before an investor makes it big in the stock market, he needs to know the basics. He needs to equip himself with tools like a Demat and a Trading account to smoothly trade in the stock market. An investor can comfortably open an online Demat account using his computer or mobile without stepping out of his home. Here is everything you should know about opening an online Demat account.
How to Open a Demat Account Online in a Few Steps
Several leading brokers allow their investors to open a free Demat account using a simple procedure. You can open a DEMAT account in three easy steps and become a market investor. Follow the steps below to open a free Demat account with a brokerage house of your choice.
Step 1: Filling out the account opening form
The first step to opening an online Demat account is filling out the form on the broker’s website. You can visit the broker’s website and fill out the form for opening a new Demat account. The form will ask you for some basic personal details like your name, date of birth, etc., and giving certain information like your mobile number, address, etc., is mandatory.
Step 2: Submit the supporting information along with the account opening form
You need to submit some supporting documents along with your account opening form. Type your Permanent Account Number (PAN) accurately as the correct PAN number is mandatory to make transactions in the share market. Give the details of the bank account you will use to fund your buy calls in the share market and receive funds for the shares you sell.
Step 3: Complete the electronic KYC process and get a Demat account number
Getting the Know Your Customer (KYC) details verified is necessary to complete the account opening process. This verification process is done online and is quick and easy. Once the broker completes the KYC process, the investor receives the Demat account number that he can use to store his shares and securities electronically.
What Documents Required to Open a Demat Account In India
To fasten the online Demat account opening process, the investor can keep his documents handy for quick verification. The documents you need to open an online Demat account are:
- PAN card as an identity proof of the customer. The photograph and signature of the PAN card holder should be clearly visible on the PAN card for easy verification.
- Income Proof of the customer can include any of his salary slips for three months, bank statements for six months, net worth certificate, Income Tax Return statements, Demat holding statements, or the holding report.
- Bank proof of the customer, including a canceled cheque, passbook, or bank account statement.
- Address proof of the customer, including his driving license, voter ID, passport, or bank account statement.
- The customer’s signature on white paper corresponds with the PAN card’s signature.
- Passport-size photograph of the customer.
The Final Word-
Opening a DEMAT account online is quick, free, and stress-free. An investor can keep his documents ready, fill out the account opening form, get his KYC done, and deposit the account opening charges to get his account opened. With a few leading brokerage houses, you can open a DEMAT account for free and have to pay zero annual maintenance charges for the first year.
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