Demat Account Opening

Demat Account Opening - Procedure

Trading in the stock market can be started after opening a Demat account. For this, the investor needs to get a list of Depository Participants registered with the National Securities Depository Ltd. and the Central Depository Services Ltd. According to the Securities and Exchange Board of India (SEBI) guidelines, the investor will fill a Demat account opening form and attach the following documents with it:

• Copy of PAN card along with the original for verification.
• Residence proof and ID proof.
• Copies of passport and driving license.
• - Passport size photograph signed across by the applicant.

The customer then needs to sign an agreement from the DP regulating the rights and responsibilities of the investors and the DP, and gets to keep a copy of the same for further reference. Within 15 days of the submission of form and documents, the DP will open an account for the investor and provide a unique account number which is called the BO ID (Beneficiary Owner Identification Number).

This BO ID will be mandatory for all transactions made by the investor, and will also help in trading shares from other DPs or brokers, transfer of securities, or for applying mutual funds or bonds, etc. A Demat account holder has the advantage of being able to maintain his account with no balance shares and virtually zero balance.