Offline Trading And Demat Account Opening Process

Step 1: Selecting Depository Participant (DP)

The primary step to opening a Demat account is shortlisting and choosing a depository participant. DP is described as an agent of the depository. They are the intermediaries between the investors and the depository,which could be an authorized bank, financial institution or broker with whom you want to open a Demat Account.Depending on your needs, requirements and trust, you need to select a depository participant (DP) for your Demat account. The selection of a DP should ideally depend on the brokerage, annual charges and leverage provided.

Step 2: Fill and Submit the Demat Account Opening Form

Once you have put your trust in a particular depository participant, you need to fill up the Demat account opening form. You will have to provide all your details, such as your full name, address, phone number, email, etc. Fill in the correct details, submit the form to the respective entity and proceed to the next step.

Step 3: Fulfill all the KYC (Know Your Customer) Requirements

Along with the duly filled Demat account opening form, submit the list of documents required, which will be discussed in the next part of this blog. KYC is done so that the DP understands its traders and their financial holdings to serve them better. Keep all the documents ready beforehand to ensure the procedure is smooth and fast.

Step 4: In-Person Verification

Once the documents are verified, then the next step is In-Person Verification (or IPV), wherein you will have to appear in person at DP’s office. This is a vital exercise that you must complete to verify and validate your details.

Step 5: Signing of the Agreement

This is the final step in which you will be required to sign an agreement with your Depository Participant. This agreement specifies all of the responsibilities and rights of the depository participant (DP) and the investor.

Once that is done, the DP will start, verify and expedite your Demat account application. You will be given a unique Beneficial Owner Identification Number (BO ID) post your application has been verified and approved. Then, you will be able to access your Demat account using this identification number.

Documents Required For Account Opening

In order to open a Demat account, you need to submit specific documents, such as proof of identity, address, and so on. Here is a list of documents required to open demat account that you need to provide to the depository participant:

1 A copy of your standard account passbook or bank statement.

2 Photocopy of your PAN card.

3 Canceled Cheque.

4 2 passport size photographs.

5 To prove your residency, you can either provide a photocopy of your landline, phone bill, voter identification card, Aadhaar card, gas bill, maintenance invoice, ration card, registered rent agreement, electricity bill, a valid driver’s license, or passport.

6 Copy of your recent pay slips or your tax return (this document is compulsory for the currency and derivatives segment)