Opening up a DEMAT account is mandatory for every individual who intent to venture into the trading activities. It is quite similar to opening a bank account and operating your account for various business and personal purposes. Unlike your normal bank account, the actual transactions in this account are carried out in shares and it is also called as a dematerialised account. Through this account you can easily buy and sell shares of different companies and reduce the paper work and complications related to it. In other words, it minimizes the risk of any unexpected delays that can cause you heavy loss, while transacting in stock market. One of the ways to open the DEMAT account is by approaching the Depository Participants. The experts here will help you in opening the account and explain the terms to use them. You can also seek the help of an expert online or offline broker who will help in opening up the Best Demat Account in India.
You need to furnish the authorities a set of relevant documents that will be informed to you by the broker. There are many online portals that will readily provide with you the details of the list of documents that are required for successfully opening the account. The procedure to open an account is quite simple and less time consuming. Nevertheless it is necessary that you provide the set of relevant and appropriate documents, as it will not delay the verification process. You can opt to open an account either with a bank or depository company. The applicant needs to fill the form completely and provide all the details asked on the form.
You also need to submit with the authorities a set of the passport size photos, photocopy of PAN card, and a drivers’ license or passport for identification purpose. For residence proof you have to submit your rent agreement, telephone bill, or voter ID. You need to provide the bank details to which you want it to be related, as only then it will become operative.
The dematerialised account fee is divided into various categories. You might be charged with dematerialised opening and documentation cost, which is usually a onetime charge. Every trader has to pay this amount, while opening the account. There are quite a few depository participants, who don’t charge any opening fees from their clients. You can easily find their details from internet. Quite a few banks and stock trading brokers provide free services to their clients. Annual maintenance costs, on the other hand have to be paid by the trader at the beginning of every year. The rules however differ from one company to the other. Quite a few brokers and banks charge this amount from their client quarterly and sometimes monthly. The other type of fee is the custodian fee. Here the trader is charged with an amount on a monthly basis and the fee is calculated on the number of securities held by them. The last in the list is the transaction fees. It is charged for the shares debited into your account from DP account.
For opening the Best Demat Account in India, you need to complete the entire procedure and all the formalities required.
Image courtesy of renjith /FreeDigitalPhotos.net
