The word ‘Demat’ is the short form of ‘dematerialization’, which is introduced to avoid the long process needed in the transfer of printed share and stock certificates. It is an electronic form of security bond that is issued for the same cost as the physical share certificates. As all financial investments and trades are now digitalized, interested investors need to open a Demat account earning profits from this sector. They should know how to open a free Demat account in India, which is an easy procedure.
Choose a Depository Participant for trading
If you are interested in online share trading, you need to select any suitable Depository Participant (DP) agent from the Indian financial market. You should choose the best DP that is well-known for superb performances and the best customer services. The wide experience of the financial company and its uses of technology for research-based trading are also prime factors for the selection of a DP.
Download the Demat account from the website of your DP
The first step for opening a Demat account is to download the form from the website of the Depository Participant that you have chosen. You need to fill up this online form with the basic details, like your name and mobile number. This contact will be immediately verified by sending an OTP to the registered mobile number. Then you need to provide your email address, date of birth, PAN number, and bank details on the given spaces of the online form.
Attach all the required documents for verification
You need to upload various documents, like the scan copies of your PAN card, Aadhaar card, canceled bank cheque, and a passport photo. All these important documents are needed for verifying your age, address, and financial status. Further in-person verification will be done by this financial company when you need to show all original copies of your given documents. Then these details will be processed for starting your Demat account.
Receive all details of your Demat account via email
This Depository Participant creates a Client ID for your new Demat account and all these necessary details are sent to your registered email address. Now, you can access your account with the help of this ID, to start trading online. You do not need to have a minimum balance in this account for online financial transactions. You also do not need to hold any share for trading on this online platform.
Though you can open a free Demat account in India, you need to pay a certain amount of money for the annual maintenance service of this account. Moreover, you need to pay for every trade that is conducted online with the guidance of your DP. If you had some stock shares in traditional printed form, you need to pay for digitalizing these shares and including in your newly formed Demat account. However, there are many benefits of opening a Demat account for investors. You will get expert advice from expert finance analysts before trading and immediate help if needed for maintaining a balanced portfolio. You can chat online with these experts via Skype or Whatsapp anytime for obtaining advice.
