DEMAT ACCOUNT

Demat account
Demat or dematerialization account is issued to Indian traders who invest in bond
and debenture listed companies and requires no formalities. If an investor wishes to
invest in shares, then a demat account is required for all electronic transactions,
such as purchases and sales and holding shares etc. The internet password is given
to the investor when you can open a demat account. One can also recruit an
investment broker, an investment broker, and take over a commission on behalf of
the real investor.

Opening procedure of demat account

The first step to open an account is to register with SEBI affiliated DP (Depository
Participant). For this first application form, the application form contains proof or
evidence, such as the proof of address, identity and a PAN card for opening the
demat account simultaneously. After completing the form, DP gives you a customer
number (i.e. account number) and produces your original documents for verification.
Many banks, broking companies, financial institutions etc. provide DP.  During the
process, the dues are split into four ways, i.e., custodian fee, annual maintenance,
transaction fee, and opening charges (according to security you received). After
opening your account, you do not have to have a balance, so your demat account
can be opened with zero balance.
The monthly charge for transactions is applied. The transaction covers securities
debiting and crediting. The transaction fee depends entirely on the DPs on which
your account is opened. Each DP has its own transaction fee charging policy, such
as debiting charges, only when certain charges apply for debiting and crediting, etc.

The following docs will be required to open a demat account: -

 Passport
 Ration card
 electricity bill
 phone landline bill.
 Driving license
 PAN card
 Personal passport size photo

Benefits of opening a demat account are as follows: -

 Demat offers quick and easy transactions.
 Easy to maintain all securities via the demat account
 It is an electronic account, so there is no need for paperwork. No stamp duty
is required while securities are transferred.
 Various risks such as theft, delay and poor delivery were involved in
paperwork. This therefore reduces the risks.
 Provide work facilities from all over the world.
 It provides the advantage of quicker communication.