Open A Demat Account Online – Demat account is an electronic form of trading securities. It was started in India by the National Securities Depository Limited (NSDL) in 2000 and has since then become a popular mode of investment. A demat account can be opened in any of the branches of the NSDL and is available to individuals as well as corporate bodies.
Features of Online Demat Account – Open A Demat Account Online
– You can keep track of your transactions and investments with the help of a demat account.
– You get full control over your investment portfolio without any third party interference or middlemen.
– You can trade securities online and enjoy faster transactions.
– Demat account is free of cost.
What are the types of accounts that you can open? – Open A Demat Account Online
You may be able to open two types of accounts, depending on your requirement.
– Cash Account: This is a demat account that allows you to buy and sell securities. You can deposit money in this account, and you can also withdraw money from this account.
– Demat Account: This is an investment account that gives you the power to buy and sell securities in your demat account. You have to open a demat account with a depository participant.
– You can open an account in any of the following modes:
1) Online mode: Open your demat and trading accounts online from any part of the world.
2) Paper mode: You can open your demat and trading accounts by filling up a form available with your registered DP or through any other channel authorized by SEBI.
3) Tele-Demat: You can open your demat account by giving a telephonic instruction to the DP.
4) Mobile Demat Account: You can also open your demat account through mobile banking.
5) You can also open your demat account with any of the following modes:
1) Using a net-banking facility from any bank in India
2) Using a credit card
3) By giving instructions to your bank manager or DP.
4) Through RTGS/NEFT facility from any bank in India.
5) By giving instructions to your bank manager or DP.
6) Using a mobile banking facility from any bank in India.
7) Through RTGS/NEFT facility from any bank in India.
Documents required to open a Demat account: Open A Demat Account Online
1) Proof of Identity: You will require to submit a valid proof of identity like passport, PAN card or driving license.
2) Proof of Address: You have to submit one document out of the following as proof of address:
a) Utility bill like telephone, gas or electricity bill.
b) Passport size photograph with your signature on it.
c) Driving license.
d) Bank statement.
e) Ration card.
f) Voter’s ID card.
g) Government issued photo ID cards like ration card, NREGA job card etc.
3) Bank Statement: You will have to submit a bank statement of the last 3 months.
4) Photographs: You will have to submit 2 photographs with your signature on it.
After you have opened your demat account, you will be given a trading password. This password is used to access the online platform of your broker and trade in stocks, bonds or mutual funds.