DEMAT ACCOUNT OPENING
We all have studied in our syllabus about dematerialisation of securities, the advantages of holding shares in demat or electronic form and how to manage your investment in demat mode.But most of us do not know how to open this demat account ? This article will help you to understand the procedure for opening demat account.
Demat account Opening procedure
To open a demat account the first step you have to take is to reach out to a depository participant.On the website of depository the list of depository participant is available.
Account opening form has to be filled up and submitted to the depository participant.
Along with the account opening form you will also have to submit documents which will serve as photo id proof and address proof.
Then an agreement has to be signed with the depository participant in the format as prescribed by the depository.
The agreement shall contain details of rights and duties of investor.
The applicant will get a copy of this agreement and a schedule of charges .
The Depository Participant will then open demat account and give you the demat account number.
This is also called beneficial owner identification number .
All the trades will be reflected in this demat account.
Demat account charges
Investors are required to pay the following charges for demat account.
- Dematerialisation and rematerialisation of your securities charges
- Annual account maintenance charges
- Transactions fees which is only for sell transactions
For closing of demat account no charges are levied
Types of demat account
Just like the bank account, one can open demat account in single or joint names or multiple accounts.
If account is opened in the name of minor guardian should be appointed for operation of the account.
DEMAT ACCOUNT OPENING
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