If you are thinking about how to invest in the stock market, the first and most important thing that you should have is a Demat account.
Demat account stock market trading
How to open Demat account for stock market trading beginners guide
A DEMAT or Dematerialization account is an account for selling and buying shares. According to the stock market regulator SEBI (Security and Exchange Board of India), it is quite important to dispose of all listed shares in Demat code. It is more comfortable to open a Demat account, handling securities from your home. You can access all transactions of your shares directly through this account.
Beginner's Guide to Open Demat Account for Stock Market Trading
How can you open a Demat account for share trading?
1: Depository - For opening a Demat account; The first thing you need is to contact the depository. You definitely need to get in touch with the depository participant, who can be either a broker or any bank.
After opening an account, all shares will be held securely with the depository only. Government-sponsored organizations are safe to deal with.
2: Submit documents- After working with the depository, you will mainly need four documents to open a Demat account. You will definitely need proof of identity and residential proof. Apart from this, your income tax PAN card, as well as Aadhaar card, is a necessary document in recent times to open a Demat account.
Depository participants who are mostly your stock brokers accept a diversity of documents rather than identity proof and residential proof. Voters can serve as an identification card, voting cards, passport, Aadhaar card, pension card, etc.
3: Residential Proof- For your residential proof, you can submit an updated passport, current landline telephone bill, income tax assessment, property tax assessment, credit card bill, electricity bill, etc.
One thing you need to remember is that all documents should be self-attested photocopied.
4: Fill the form- Then, after submitting all your documents, you have to fill the KYC (Know Your Customer) form. After that, the KYC form should be signed by the depository and the complete details of the rules and regulations will also be stated in the form in due course.
5: Keep backup - It is very important to keep a backup document. So, you will get the printed form or photocopy of the same, which will need to be used in the future. After keeping your backup documents, you have to go for document verification. Thereafter, the depository will definitely ask for in-person confirmation of the form.
In this specific case, you have to visit the office. Or, a representative will participate in the place as well.
6: Verification- After submitting your ID, the officials will verify your documents. A depository will give the beneficiary ID. This ID will be a unique shareholder code, which will be used to sell or buy in any type of stock exchange market.
However, you will have to submit photocopies of your documents, but the original ones need to be produced when requested by the higher authority for final verification before starting with the transaction through a Demat account.
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| How To Opening A Demat Account for Stock Market Trading Beginner’s Guide |
Demat account stock market trading
How to open Demat account for stock market trading beginners guide
A DEMAT or Dematerialization account is an account for selling and buying shares. According to the stock market regulator SEBI (Security and Exchange Board of India), it is quite important to dispose of all listed shares in Demat code. It is more comfortable to open a Demat account, handling securities from your home. You can access all transactions of your shares directly through this account.
Beginner's Guide to Open Demat Account for Stock Market Trading
How can you open a Demat account for share trading?
1: Depository - For opening a Demat account; The first thing you need is to contact the depository. You definitely need to get in touch with the depository participant, who can be either a broker or any bank.
After opening an account, all shares will be held securely with the depository only. Government-sponsored organizations are safe to deal with.
2: Submit documents- After working with the depository, you will mainly need four documents to open a Demat account. You will definitely need proof of identity and residential proof. Apart from this, your income tax PAN card, as well as Aadhaar card, is a necessary document in recent times to open a Demat account.
Depository participants who are mostly your stock brokers accept a diversity of documents rather than identity proof and residential proof. Voters can serve as an identification card, voting cards, passport, Aadhaar card, pension card, etc.
3: Residential Proof- For your residential proof, you can submit an updated passport, current landline telephone bill, income tax assessment, property tax assessment, credit card bill, electricity bill, etc.
One thing you need to remember is that all documents should be self-attested photocopied.
4: Fill the form- Then, after submitting all your documents, you have to fill the KYC (Know Your Customer) form. After that, the KYC form should be signed by the depository and the complete details of the rules and regulations will also be stated in the form in due course.
5: Keep backup - It is very important to keep a backup document. So, you will get the printed form or photocopy of the same, which will need to be used in the future. After keeping your backup documents, you have to go for document verification. Thereafter, the depository will definitely ask for in-person confirmation of the form.
In this specific case, you have to visit the office. Or, a representative will participate in the place as well.
6: Verification- After submitting your ID, the officials will verify your documents. A depository will give the beneficiary ID. This ID will be a unique shareholder code, which will be used to sell or buy in any type of stock exchange market.
However, you will have to submit photocopies of your documents, but the original ones need to be produced when requested by the higher authority for final verification before starting with the transaction through a Demat account.
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