Do you have an idea about DEMAT account opening in India? Oh you don’t know, don’t worry this article is specially written for those who are willing to open DEMAT but because of lack of knowledge they are doing delay. May be almost everyone knows that DEMAT account is made to be used when one wants to sell and buy stocks and wants to dip your hands in primary Public offerings.

Full form of word DEMAT is dematerialized account. This account is maintained by individual or two and more individual. According to Securities Exchange Board of India, every person who wish to trade for listed stocks, should have DEMAT account. By DEMAT account you can buy gold ETFs (Exchange Traded Funds) and mutual funds.
Once you opened DEMAT account and buy stocks, you need to do run anywhere; electronic form of you will be there, because of this you need to take tension for stock’s papers and certificates. After reading you must have been happy, this is one of the advantages of DEMAT account, you just have to pay money for your electronic form.
Do you want open DEMAT account for online trading, then here are the two important high-level steps.
1.    Involve depository participant.
2.    For submission, carry your all-relevant documents.

Involve Depository participant

Before opening DEMAT account, you need to hire Depository participant.
However, First you need to know, what is this Depository participant
The meaning of depository is storehouse; here all your stocks are stored in electronic form. Depository contains numbers of branches known as Depository Participants. It receives clients and takes care of them. Depositories accepts shares only from Depository participants, it does not receive shares directly from investors. Depository participants are recorded with SEBI & from depositories, it works as agents. However, DPs is midway between depositories such as CDSL, an investor or NSDL.
You will find numbers of financial institutions and brokers, who works as depository participants. Approach them and enquire them to start DEMAT account. According to your choice you can hire any depository participants for your DEMAT account.
For submission, carry all of your relevant documents
For DEMAT account you need to fill entire form of account opening and serve documents to offer your whole detailed information which called as Know Your Customer (KYC) guidelines. Document varies from one DP to another DP that is why don’t forget to ask this. For your personal identity prof, you need to display you r original PAN card while opening an account. After that, investor needs to sign over agreement along with depository participant in recommended depository standard format to begin DEMAT account.

Following are few documents, which are required:

a.    IT returns
b.    Ration card
c.    PAN card
d.    Passport
e.    Phone landline or electricity bill
f.    Driver’s license
g.    Voter’s license
After you done with required formalities, later on, you will get an account number that is known as BO ID means Beneficiary Owner Identification number and from account, you will get DP ID. You have to store both numbers carefully because for communication with your DP you need these numbers. A very essential thing, which you have note that for online trade, you should have three accounts:
Trading account – broker handles this account, trading account is a place where you sell and buy shares. Importantly, this trading account is sandwich between your bank account and DEMATS account.
DEMAT account; as explained above, this account holds by depository participants.
Bank account – it is savings account that is connected to your DEMAT account. By your trading account, when you sell and buy shares, money is credited and debited from this savings account.
After opening a DEMAT account 4 prime charges are generally charged on your account such as transaction fee, account opening fee, custodian fee and annual maintenance fee. These all charges are different from one DP to another DP. Numerous depository participants ignore the fee of account opening.

Following is India’s stock brokers list, you can contact them along with your DEMAT account.
a.    HDFC securities
b.    Sharekhan
c.    Indiabulls
d.    Kotak securities
e.    Motilal Oswal securities
f.    HDFC securities
g.    Religare
h.    Angel Trade
i.    ICICIDirect
j.    Geojit
k.    HSBC InvestDirect
l.    Standard Chartered
m.    Reliance Money
n.    5Paise
o.    IDBIPaisaBuilder
These are the stockbroker’s agencies; you can choose anyone according to your preference and make money!

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