Demat Account

If you want to trade in Share Market. De-mat account is must. The market regulator, the Securities and Exchange Board of India (SEBI), has made it compulsory to open the De-mat account if you want to buy and sell shares in Indian share market.
So a demat account is a must for trading and investing in share market.
To open new De-mat account you have to approach a Depository Participant (DP) to open a De-mat account. Most banks are DP participants. A broker is a member of the stock exchange, who buys and sells shares on his behalf and also on behalf of his customers.
A broker can also be a DP.
Following are the documents required to open De-mat account:
When you approach any DP, you will be guided through the formalities for opening a De-mat account. The DP will ask to provide some documents as proof of your identity and address. Below is a list of documents out of which you have to submit one or two.
PAN card, Voter’s ID, Passport, Ration card, Driver’s license, Photo credit card Employee ID card, IT returns, Electricity/ Land-line phone bill etc.
Now you must be wondering, do you need any shares to open a De-mat account? Answer is, NO. You need not have to have any shares to open a De-mat account. A De-mat account can be opened with no balance of shares.
And also there is no restriction to maintain any minimum shares. You can have a zero balance (shares) in your account.
How much it cost to open a De-mat account?
The charges for Demat account opening varies from broker to broker of from DP to DP.
Generally some broker charge one time account opening fees but currently due to high competition they are offering free account.
After successfully opening the De-mat account you are ready to do buying and selling of shares in share market exchanges like BSE and NSE.
Important points to remember while opening on line De-mat account
1) Do multiple inquiries with various brokers or DP’s and try getting low brokerage charges.
2) Also discuss about the margin they provide for day trading.
3) Discuss about fund transfer facility. The fund transfer should be reliable and easy. Fund transfer from your bank account to trading account and fund payout from your trading account back to your bank savings account. Some on line share trading account has integrated savings account which makes easy for you to transfer funds from your saving account to trading account.
4) Very important is about service they provide, the research calls, Intraday or daily trading tips.
5) Also inquire about their services charges and any other hidden fees if any.
6) Check how reliable and easy is to contact them in case of any emergency, like buying and selling of shares on immediate basis or in case of any technical or other problems at your side while trading yourself.
7) You can also request to broker for demonstration of the trading terminal software and check how comfortable it is for you.

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