Opening a demat account? Here are all the documents required for the same
Do you keep receiving pop-ups about demat accounts? Do your friends and colleagues discuss the advantages of having a demat account? If you are interested in share-trading, you should probably consider opening a demat trading account.
How to open a demat account?
Demat accounts are provided by banks and stock brokers, known as Depository Participants or DPs. All DPs offer various types of demat accounts, with more or less similar account opening procedures.
A demat account can be opened both offline and online. However, since the demat account only holds your securities, you also need to open a trading account so that you can purchase and sell various market instruments. Several DPs also offer free demat account opening services.
Documents required for demat account opening
Opening a demat account is very convenient now. If you opt for the online demat account opening procedure, you can either use the Digilocker facility offered by the Government of India to fetch your documents or use your Aadhar number to complete the e-KYC process. You should keep your signature image handy to complete the process. Your bank account details can be verified by the penny drop facility by depositing Rs. 1 in your bank account. Otherwise, you can upload a copy of your cancelled cheque, Bank statement or a copy of your bank passbook to verify your bank account details.
If you choose the offline method, you need to submit photocopies of necessary papers at your DP’s branch. The document includes a copy of your PAN card, Address proof, proof of bank account and photographs. Remember to check the Official Valid Documents or OVD list provided by your DP and submit your documents accordingly.
Time taken to open a demat account
The time required to open a demat account varies from one broker to another. However, in any case, with all the required documents in hand, the online process with ICICIdirect should not take more than 10 minutes
Disclaimer: The contents herein mentioned are solely for informational purpose and shall not be considered as an invitation or persuasion to trade or invest. I-Sec and affiliates accept no liabilities for any loss or damage of any kind arising out of any actions taken in reliance thereon