How to Open a Demat account online?
Opening a Demat account online is very simple and easy to open because it takes less time as compared to paperwork also the below steps will help you to clear your mind about opening a Demat account
4 Steps to Open a Demat account
1. To open a Demat account, you have to approach a depository participant (DP), an agent of depository, and fill up an account opening form.
2. Along with the account opening form, you must enclose photocopies of some documents for proof of identity and proof of address.
3. You will have to sign an agreement with DP in the depository prescribed standard format, which gives details of rights and duties of investor and DP. You are entitled to receive a copy of the agreement and schedule of charges for future reference.
4. The DP will then open an account and give you the Demat account number. This is also called a beneficial owner identification number (BO ID). All your purchases/investments in securities will be credited to this account. If you sell your securities, your Demat account will be debited.
You can have multiple Demat accounts if you so wish. You can choose your DP as per your convenience and there is no compulsion to open DP account with your stock broker.
