Learn all about Demat account opening procedure!

People today are keen to look out for handy and convenient investment tools through which they can make good profits without putting much of efforts. One such tool is a demat account or a dematerialized account that holds all the security certificates in an electronic format. As per the latest norms, it is mandatory to have a demat account in order to invest or buy/sell shares and securities in the trade market. This is said to be the very first step to venture into the share trading market. Therefore, it is significant to understand the demat account opening procedure even before planning to invest in the share market.

Opening a demat account is just like opening a bank account, though it involves a few basic steps. So, today we are going to discuss about the process involved for opening a demat account.

1. Select your depository participant – First of all, select your Depository Participant (DP). In India, there are basically two depositories being active – NSDL (National Securities Depository Limited) and CDSL (Central Depository Services Limited).
2. Keep your documents ready – The next you need to produce a set of required documents to the depository participant as this is a part of demat account opening procedure. Initially, an investor will be asked to submit certain identity and address proofs beside mandatory PAN card and Aadhaar card document.
3. Go through fine prints – Once you submit the required documents, make sure to go through the fine prints of an agreement before finally signing on the dotted lines. There will be certain terms and conditions mentioned on the agreement between you and the depository participant. Most investors often skip going through the agreement details and ultimately, land into a trouble or clash later. Also, don’t just rely on word-of-mouth as told by your friends or relatives about the agreement conditions, because every depository participant has different set of terms and conditions. Thus, it would be wise for you to get into every detail of the agreement.
4. Mention a nominee – Just like any other bank account, insurance policy or fixed deposit, you need to fill a nomination form with your demat account as well. Nomination is a significant step in demat account opening procedure as it smoothens the delivery of your share and securities in an unfortunate event of your demise.
5. Setting up digital demat account – You’re almost there to begin trading through your accounts, but before that you need to set up your digital dematerialized account at https://www.applykaroo.com/demat-account in a few clicks. Complete the verification process via One Time Password (OTP) and you’re good to go.

Buy and/or sell shares and securities on the go via online demat account, while keeping your certificates safe and secured.