You must know for Demat Account these three things before joining the share market
- What is DEMAT ACCOUNT?
- How to open DEMAT ACCOUNT?
- Process of KYC
WHAT IS DEMAT ACCOUNT
It is necessary to have Demat account of shareholders through which shares can purchase or sell without demate account you are not able to purchase any share that is the reason you have to make your demate account for the very first time. you have to purchase a share by paying the full amount of money through the demate account and that share will be in your demate account similarly, as you secure your jewellery in your bank locker. whichever share you would buy or sell would be in your demate account. after selling the share your money would transfer to your demate account and then you can transfer your money to your saving account if you want.
There are two types of account
- DEMAT ACCOUNT
- TRADING ACCOUNT
DEMAT ACCOUNT is used for you and TRADING ACCOUNT is for a broker.
HOW TO OPEN DEMAT ACCOUNT
To open a DEMAT ACCOUNT it is necessary to have savings account without any bank account you can’t transact money. You can open your Demat account directly from the bank if you want but you have to pay high brokerage charges so, it would profitable for you if you open your DEMAT ACCOUNT through brokers because brokers have Authorised licence and they charge less amount money in comparison of the bank as well.
Some names of brokers have been given below. you can choose one name from the following names then visit choose broker’s website and open your demate account to fill the form or you can download the app of choose broker. Broker’s name is;
Few brokers do not charge any amount of money. They open free of cost Demat account. Such as:- MOTILAL OSWAL, ANGEL BROKING etc. It completely takes 72hr to activate your Demat account. In which few times taken by you people and rest of the time taken by the company side to open an account.
DOCUMENT REQUIRED TO OPEN DEMATE ACCOUNT
- PAN CARD XEROX
- ADHAR CARD XEROX
- CANCEL CHEQUE
- LAST 6 MONTH BANK STATEMENT
- PAN SIGN
- LIVE PHOTO