By using the term the demat account, it can be said the one that fulfills your option of purchasing and selling and also making transactions with no necessity of any paper work. It has come to notice that a demat account is in safe hands and unproblematic to operate. It is a huge step in abolishing the paper share certificates.
As per the regulator of the stock market, the trader needs to have a demat account to hold the shares. This account can be opened with any of the authenticated service providers. There are many brokers and broking firms that operate in the market, and they can help the trader to open a free demat account also. However, normally, there is an annual maintenance charge for the same, but still, some of the service providers offer a free demat account which can again help the client get some additional benefits.
Open a demat account
Below are enlisted five pieces of advice that can be followed for opening a demat account:
- It is necessary to engage some depository participant of some company.
- The formality of the form to be filled by you and attaching essential documents to it.
- Next, it is required to submit the form and documents crucial to the process. Pan card is a must for opening a demat
- Depository participant will appoint an employee for verification in person.
- Whatever be the information in connection with the account number and related details are to be given by depository participant.
Need of fees and documents for a demat account
Fees
In case you are interested in operating a demat account, you will be required to shell out annual fee which has been fixed and is said to be annual charge maintenance fee in favor of said account. To operate the best demat account in India, depository participants will realize you charges by way of the fee according to their sweet will. On the other hand, to open a demat account discount brokers do not demand any commission because all the process is undertaken online with no a cost at all. Besides taking maintenance fees the depository participants – DP realize from you a changeable fee that is based on the transaction. They take commission from you either on purchasing or selling instruments, and normally they demand a fixed fee depending upon per transaction or can be the percentage of the size of your transaction.
Documents required for operating a Demat Account
Only two kinds of papers are required for operating a demat account.
Identity proof
In identity proof, you will be asked to submit some documents as aadhar card, voters ID, driving license, pan card, passport. Applicant’s photo with ID cards is necessary that has been issued by central or state authority.
Address proof
This kind of proof demand to furnish documents like driving license, ration card, passport, voter ID card, telephone bills, electricity bills verified by authorities, bank passbook, bank statement, license agreement, sale agreement, and leave.