A demat account is the one that stores all our transaction details regarding our shares and stocks we bought or sold in a digital manner. Online trading in India requires to open demat account first and then we can get started with our investments. It is very important as an investor to know how to open an account online so that we can easily deal with all the future payments and transactions. We just have to open the account and once we start our investing journey, the account is maintained automatically, with all the previous transaction details being recorded and kept safe. It is very easy to open the account and use it fluently. The main task of this account is to store all the important details and information regarding our shares which we bought or sold during our investment with several business firms. Just like opening an account in a bank, demat is somewhat similar to that and provides us with all the services in the online platform.
Here are the steps following which we can create and open trading account easily and can have the access of the resources provided by it:
- DEPOSITORY PARTICIPANT: First of all, we have to select a participant with whom we want to create a demat account so that he/she can provide us the services which we are looking for.
- PROVIDE BASIC DETAILS: After the selection of our depository partner, we have to fill up the account opening form on his/her website providing necessary information like name, bank details, pan card number, etc.
- ADD BANK DETAILS: This is mandatory field in which fill up the information regarding our bank so that we can easily credit or debit our account in the future if we are investing in any company.
- UPLOAD DOCUMENTS: A demat account also requires adding all the personal information related to our name, address, and a photo of ours which works as a proof of our identity.
- IN-PERSON VERIFICATION: Since it is a digital platform, so we don’t need to go to an agent for this verification step, instead we can just easily record a short video at our home reading out the script provided to us and can verify ourselves easily.
- E-SIGN: These depository participants also provide the services of digital signature that avoids extra paperwork. It is a convenient way to get verified easily at home.
- FORM SUBMISSION: After filling out the form check for the necessary information which we have filled and go through important details once again to be sure about what we have filled and then we can finally submit the form without any worries.
These were the necessary steps to be followed if we want to open our demat account and after that we can invest or buy the company shares in which we are investing and make our transactions easily. This account makes our debit and credit transaction work easy and gives extra services of funding and bonds with many companies.