subject: Learn How To Open Demat Account [print this page] If there is investment that rules your mind then first thing that you should do is open demat account. A de-materialized account is used for buying and selling of shares in the stock market, especially for the transaction of those shares deals of which are carried out on electronic platform. As per the guidelines of SEBI (Stock Exchange Board of India), it is important for everyone to have a demat account in order to invest in stock market. There was a time when getting this account was a tough job but now with the invasion of technology has made this possible simply. You have a choice to Open demat account with any private or government undertaking bank. Also, you can also get it opened with the assistance of financial institutions or stock brokers. Basically the main idea is to open demat account with any of the registered depository.
Opening a demat account is a simpler task in which you fill a form and attach it with the photocopy of your PAN card which is provided by the income tax department of the country. Thee form is actually an agreement with the registered depository. Along with this you need to represent your residence proof through a Xerox copy. Besides this, you also need to submit two passport size photographs and a cheque cancelled by you. It is required to connect your demat account with your bank account. As you identity proof you can submit a copy of your passport, voter identification card, driving license, etc. you can submit latest bank statement, latest telephone bills, ration card, etc as your address proof. Charges to open demat account varies from DP to DP.
Once you open trading account you are now open to trade in the stock market. It is a trading account, so any transaction you make in the stock market it will pass through your demat account only. At present there are numerous firms which are functioning in the country. They can also help you to open demat account. ICICI direct, Mansukh, Share Khan, etc are some of the finest brokerage firms of the country. They also help you to learn how to trade in this highly versatile market. Whether it is Derivatives trading, Commodity trading or equity trading, they give you insight of the complete market. They also have skilled finance professionals who know the changing trends of the market. So, their guidance help you to invest in the market in a way that you get the maximum returns.
