How to open Demat account in 2022?| Which is the best bank to open a Demat account? Is Demat account safe?| What is Demat account? If you have any query related to this then today your doubt will be solved.
You must have heard the name of your demat account sometime or the other. Whenever we buy shares of any company, then at that time demat account is required.
In the earlier times, when someone used to buy shares of a company, a document was available for proof at that time. But after the arrival of the demat account, the option of the physical document has been closed.
Then you will get all the proofs and details on the demat account itself. If you want to invest in any company then it is very important for you to have a demat account.
To open a demat account, it is very important for you to have a pan card for document verification. You cannot open your demat account without pancard.
Let’s start today’s article “How to open demat account“.
What is Demat Account?
Demat account is like a bank account in a way. To buy shares of any company, you must have a demat account.
SEBI clearly says that to buy shares of any company, you must have a demat account. SEBI has said that apart from the demat account, one cannot buy and sell the shares of any company on any other platform.
Just as we keep the currency in our bank account, in the same way the shares of the company are kept in the demat account.
In earlier times, on buying the share of any company, you used to get a document as proof. But now that system has been removed.
Now you can see all the details of the shares of the bought and purchased company in the demat account.
On the Demat account, you can transfer the shares purchased online to another’s account.
How to open demat account in 2022?
You can open demat account both online and offline. I have mentioned some steps and documents below.
Documents Required For Opening Demat Account
- Any Proof Of Identity (Like Aadhar Card, Driving License)
- Proof Of Income
- Proof Of Bank Account (Cancelled Check)
- 2-3 passport size photos.
How to Open Demat Account In 2022?
Step 1. Take the above-mentioned document to any broker or bank (HDFC, SBI, ICICI, etc.).
Step 2. After this fill the KYC form. You can take the KYC form from the bank or you can download it online and get it printed out.
Step 3. After this fill in your details. And link all the required documents to open demat account with the KYC form.
Step 4. After this give a canceled check of your bank account to the broker.
Step 5. After the Demat account is opened, you will get the client id from the DP (Depository Participant).
Step 6. Follow the guideline given by DP.
Now your account will be successfully opened. Now you can buy shares.
In this article, I have shared information about what is demat account?, How to open demat account? Document requirement To open demat account.
I hope this article “open demat account” will be helpful for you.
Thank you for reading…