Cross barriers and open new possibilities with Demat Account

During the last decade the stock market had transcended to electronic trading and the usage of paper certificates of shares has become the thing of the past as the maintenance of paper shares for trade and settlement is very cumbersome. The demat account has become an absolute must for online trading and now an investor can expand his portfolio to commodity and currency along with other securities.   

If you want to participate in an Initial Public Offering (IPO) and have a piece of the pie then you must open a demat account and have all the knowledge related to this process. A demat account is like a depository that holds your shares electronically. There are two apex depositories in India the National Securities Depository Ltd (NSDL) and the Central Depository Services Ltd (CDSL). And there are over a hundred Depository Participants (DPs) in India and they act as agents for the NCDL and CDSL are empowered to open demat accounts for their customers.

Just like opening a savings account with a bank you will have to open a demat account with a stock broker of your choice. In the demat account your physical shares will get converted to electronic form and every purchase and sale transaction of shares and securities are will be involved with will be done through the stock exchanges BSE (Bombay Stock Exchange) and NSE (National Stock Exchange). Where you will have the privilege to invest in the stock of some of the big players with large market capitalization listed in the stock exchange. 

We will now discuss on the documents you will need to open a demat account with the help of your broker – 

•    By mandate of SEBI a trader has to submit a copy of their pan card and they should produce the original  at the time of verification.
•    Proof of residence and identity has to be duly produced to your broker.
•    You will need passport size photographs. 

Your broker will provide you the demat account opening form and after you had fully signed and attached the required document for account opening then within a short period your account will be ready for you to start trading in the most dynamic wealth creation avenue of trading in the stock market.