How can one open a demat account? Here are 4 simple steps to follow

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demat account. A dematerialised (demat) account serves as a digital repository for the financial securities purchased by an investor, storing them in electronic format. This account streamlines the storage and management of financial securities, offering convenience and accessibility to investors.

The process of opening a demat account through a depositary participant is very simple and easy. It is similar to the opening of a bank account. The demat account can be created by following four simple steps, as follows: 1. To open your demat account, you first need to select a Depository Participant (DP) at your convenience.

Also Read: What is a demat account and how does it work? MintGenie explains 2. A form has to be filled out by the investor before the account is created. The investor would be required to provide all the necessary details along with copies of the needed documents. These documents include proof of address, identity, income, etc.

Above all, a Permanent Account Number (PAN) card is mandatory for opening this account. After the verification of all these documents, the investor must proceed to the next step. 3. An in-person verification also takes place to cross-check the identity and validity of other documents that the investor has provided.

Also, the investor would be handed a list of rules and regulations along with the details of the charges that the BO has to pay the DP. 4. Right after the entire verification and approval of all the documentation, the investor’s demat account becomes operational. Also Read: How to start investing in the stock market — A step by step guide Yes.