Procedure of opening Demat account

In a demat account, the investor does not take a physical position of certificates of shares and securities. All shares and securities are held electronically. The account is usually opened by an investor when registering with an investment broker. The account number is coded for all the transactions. This makes it possible for electronic settlements of trade to take place. As an investor or shareholder, you must have a demat account for trading shares.
You must have a transaction password and an Internet password to access the demat account. No one can make a transfer or purchases of securities if they do not have these security passwords.

Opening Your Account:

Opening a demat account is quite easy, as there are only few steps involved. You can open a demat account with any company through online. After opening the account, you will be able to take part in the shares market, where you can invest and trade shares.

Choose a suitable broker:

The process and the required documents differ from one broker to another. Therefore, choose and approach a share broker whose process is easy for you to handle. Make sure you have all the legal documents needed before you proceed to the next step.

Filling the form:

You will be required to fill a form for opening the demat account. Make sure you fill in the details correctly and then recheck that you have filled in the correct details in the form. A proof of your identity is required. Therefore, provide residential and identify proof on the form. You will have a PAN card at the time. Keep this safely as it will be required for verification.

After the verification process, you will be given a demat account number, which you will use for all your future transactions. You will also be given a transaction and internet password for accessing your demat account and initiating transactions.