As humans, we all love to save money. What if this saved money can be invested somewhere that can bring some return on it? Isn’t it a great idea? If you also think like this then the most appropriate way to invest your money is in the stock market. You all might have seen people talking about the stock market and its prices. Investing in the market can be a great deal that will help in utilizing your spare money. The increase in popularity of the stock market has changed the thinking of many people regarding saving and investment.
The increase in the demand for stocks in the market has led SEBI to implement some guidelines that every person involved in this market has to follow it. So to start online trading, first of all, the person needs to have a Demat account. For this, he has to follow all the steps of how to open Demat account online. The steps are stated as follows:
- Choose depository participant: First of all the person who wants to open the Demat account has to choose the depository participant. He needs to select the DP that will offer all the services and features according to his requirement. In India, DP services are provided by the bank, brokers, and online investment platforms.
- Need to submit the form for Demat opening account: Once the person visits the DP’s website, where he can select the option of the Demat account opening. He will be provided with a form that requires to be filled with all the appropriate information. Many DP service providers open both trading and Demat accounts simultaneously. So the person needs to fill the form and submit it with them.
- Fulfil KYC: Once the Demat account form is filled, the person is required to fulfil the requirements for the KYC. He needs to submit the scanned copies of different important documents like Aadhaar card, Pan Card, Address proof, bank account statements, etc. It is very important to provide relevant documents and information for a fast process.
- Go through the process of verification: Once the verification of all the documents is done, the person is asked to go through a process known as “In-Person Verification”. This process is undertaken to verify the authenticity of the documents. It can be conducted through video calls or voice calls.
- Sign the agreement copies: To complete the process of the Demat account opening, the person also needs to sign the agreement copies. In this, all the terms and conditions regarding the Demat account are written. Just go through it once and sign it.
- Get your BO ID number: Once all this process is done for the opening of the Demat account. The person will be allotted the Beneficial Owner Identification Number. With this number, the person can easily access the Demat account.
So it can be seen that opening the Demat account is quite simple and everything is done through an online process. For more information on this, the person can visit 5paisa. It is an easy-to-use interface that provides all the information that will help the person to learn more about stocks and investments.