It is one of India’s most profitable opportunities to invest in the stock market. More and more people are moving toward the Indian stock market. With the availability of demat accounts, it is more efficient to buy and sell stocks and other securities.
Demat accounts are indispensable components of investing in the financial markets. You must understand the crucial things to open a demat account as a beginner in the stock market in India. A demat account acts as a storage facility that allows you to store all your investments. It is flexible to access; you can use it whenever, at any place.
Before the advent of demat accounts in 1996, individuals had to hold stocks and other securities in paper form. Keeping physical share certificates was difficult. It is now faster, safer, and more efficient to trade and invest in various securities.
With the demat account, you can convert your physical share certificates into electronic ones through the process of dematerialization. In the same way, you can convert your electronic share certificates into physical form with the process of Rematerialization.
Before beginning the procedure of opening an online demat account, you must keep in mind the things that are mentioned below.
Just like opening any other account in the financial world, you must submit a few documents for a demat account opening. Opening a demat account mandatorily requires you to have a PAN card.
Apart from the mandatory PAN card, you are also expected to submit proof of identity and proof of address to open a demat account online.
- Proof of Identity (PAN Card, UID (Aadhaar), Driving Licence, Passport, Voter Identity Card, NREGA Job Card, any document notified by the government of India, etc.)
- Proof of address (passport, UID (Aadhaar), voter identity card, state-issued driving license, NREGA Job card, utility bill, bank account proof, or any other document supported by the central government).
- Proof of Bank account(a bank statement, a canceled cheque, or the front page of your passbook that contains your name, account number, IFSC code, branch name, and MICR).
- Submit your signature (on blank paper).
Demat Account Charges
You must know about different demat account charges from account opening to operating. However, here are the following two main charges related to the demat account.
Account opening charges: This charge applies to you when you open a demat account. But in Share India, you will have to pay no cost at all for the demat account opening.
Annual maintenance fees: This is widely known as the AMC charge. This charge you will have to pay every year for maintenance of your demat account. There is no AMC charge for the first year after opening a demat account on Share India. But after that, you will have to pay annually.
How do I Open an Online demat account on Share India?
Here are four simple steps to open a demat account with Share India.