What is a Demat Account?
A Demat account allows you to hold your shares and other securities digitally. It makes the buying and selling process easy. It will help you convert your Physical Securities into electronic forms that will be easy to maintain. You can Dematerialization & Rematerialisation of Securities and other Corporate Benefits. The SEBI has made it mandatory to open Demat accounts who want to invest in Share Market.
How to open a Demat Account?
1. Choose a Depository that can fulfill all your needs and requirements. There are two types of Depositories in India: Central Depository Services Limited (CDSL) and National Securities Depository Limited (NSDL).
2. Choose a Depository Participant (DP) helps you to avail the benefits provided by the Deposirity you chose.
3. Visit the DP’s website, fill in the Demat account opening form, and fill out the nominee form.
4. Fill in the KYC form and submit your documents.
5. Read all the DP’s agreements and submit them.
6. Provide your e-sign.
7. After verification, the service provider will give you your Demat account credentials that include a unique Beneficial Owner Identification Number or BO ID.
What is the document required to open a Demat Account?
To open a Demat account, you need to submit documents to the service provider. These documents will help you complete your KYC and activate your Demat Account.
1. For Identity proof, you need to submit any of the following-
● Aadhar card.
● PAN card.
● Voter card.
● Driving license.
2. For Address proof. Any of the following documents you need to submit-
● Electric bill.
● Telephone bill.
● Passport.
3. A Bank passbook is also required to authenticate your Bank account proof.
4. According to the Securities and Exchange Board of India (SEBI), PAN Card is mandatory to open a Demat account.
What are the Cost-effective Ways to Open a Demat and Trading Account?
We need to know why we require a cost-effective way to open a Demat account. There are charges charged by Brokerage Service providers like account opening charges, maintenance charges, etc. A stock brokerage may impose many hidden charges. To avoid all these hidden charges, we need to cross-check all the facts about opening a Demat account.
We need to look at some points for getting a cost-effective way to open a Demat account.
1. The account charges for a Demat account are minimum concerning the trade.
2. In IIFL Securities, the rate of Stock trading is competitive and low. Along with the best price, IIFL Securities is one of the trusted Stock Brokers in India.
3. The trade charges of IIFL Securities are Rs.20/- per order of intraday trading, F&O and currency. To know more about offers and costs, visit the IIFL Securities website.
Conclusion
Although several charges start from a Demat account opening to the annual maintenance of the account, you just need to choose the Depository Participant (DP), who provides a cost-effective way to open a Demat account. . We also consider factors such as reliability, add-on services, and utility provided by the service provider. So before opening a Demat account, properly research every factor.
