How do you open a Demat account and start buying shares?

How do you open a Demat account and start buying shares?

The Demat account lets digital storage of shares of investors. These accounts are under the maintenance of the organizations called the Depositories. The investors, however, need to open the Demat account through the Depository Participants (DPs). They are the institutions acting as the intermediaries between the Depositories and the investors. For buying shares you will require a trading account to place your orders. You can follow some simple steps to open a Demat and trading account for yourself.

  1. You can contact any DP at their office or online platform to apply for the Demat and trading accounts. Before that, do make sure to look at the kinds of services it offers and the charges it levies for them.

  2. Once you choose the DP, get the account opening forms and fill them properly to initiate the account opening process. Some reputed institutions like IIFL Securities provide a completely digital procedure to get a Demat account. This makes the process extremely smooth and time-saving. One can get all the necessary information regarding this on their portal with a step by steps guide.

  3. Next, submit all the personal details such as name, date of birth, mobile number, etc., to complete the know you customer (KYC) process.

  4. Provide the necessary documents like proof of identity and address along with your photographs.

  5. Give the bank details, a cancelled cheque, and proof of income, if asked.

  6. Once the institution verifies your documents, it will provide you the login credential of both the Demat account.

When you have the Demat account, you should also create your Trading account. The process is quite similar to opening a Demat account. Some DP enable 2 in 1 the services providing both the demat and trading accounts. This makes the process even more simple. Use the trading account to place a buy order for the shares you want to buy. After the stock exchange confirms the order, you will receive the shares in your Demat account.

You can easily open a Demat Account with any of the stockbrokers. The account will be opened in one or 2 days. After that, you can start punching in orders. Many brokers are even offering the option to open an account online and this takes even less time.