5Paisa.com which is a member of BSE and NSE is one of the discount brokers offering firm which provides investing and trading services in several segments which includes derivatives (futures and options), stocks, currency.
Procedure of Opening
Step 1: You have to select Depository Participant (DP)
The very prominent first step to open a Demat account is to choose a depository participant (DP). You can choose the best DP services that are available in India through banks, stockbrokers, and online investment platforms. While selecting a DP, look for a service provider whose offerings and features fit your needs and specifications.
Step 2: Fill out and submit the Demat Account Opening Form
Go to your DP’s website and fill out the online Demat account opening form to open a Demat account. Many depository participants allow you to open both trading and Demat accounts simultaneously.
Step 3: Comply with KYC (Know Your Customer) requirements
After you’ve completed the Demat account application, it is time for the Know Your Customer (KYC) requirements. It requires scanned copies of KYC documents such as proof of identity, proof of address, bank account statement, and proof of income. It’s better to have all of the necessary documents nearby before applying, as this will help you move through the process more quickly.
Step 4: Complete the Verification Procedure
After providing the KYC details, you have to go through an ‘In-Person Verification’ process (IPV). This is a necessary exercise that you must complete in order to check the validity of your records. You may be needed to appear in person at either of your service provider’s offices, depending on your DP. Many depository participants, on the other hand, now provide IPV services online using a webcam or a smartphone.
Step 5: Sign Copies of the Agreement
Post verification, you’ll be asked to sign a contract with your Depository Participant. This agreement enumerates all of the depository participant’s and investors’ responsibilities and rights.
Step 6: Get Your BO ID Number after the above processes are done
After signing the agreement, your DP will begin processing your Demat account application. You will be given a special Beneficial Owner Identification Number once your application has been approved (BO ID). You can access your Demat account using this BO ID.
(Source:5paisa.com)
Documents required
The documents required to open a Demat account is minimal. This is something that makes it easier for new applicants to follow the procedure from beginning to end without experiencing any difficulties. Only the documents mentioned below must be submitted.
- A copy of your checking account passbook or bank statement as evidence of your bank account (not older than 3 months)
- Identification proof: a photocopy of your PAN card
- Proof of your earnings: a copy of your most recent pay stubs or your tax return (mandatory for currency and derivatives segment)
- Cancelled Cheque
- 2 passport size photographs
- Proof of address: A copy of any of the following documents will suffice as proof of residency.
- A phone bill from a landline
- A bank passbook or account statement (not older than 3 months from the date of receipt of documents)
- Voter identification card
- Aadhaar card
- Gas bill
- Apartment maintenance bill
- Ration card
- Registered lease agreement
- Electricity bill
- A valid driver’s license
- A valid passport
Types of charges associated with opening a Demat Account
Let us find out the charges and related to operating a Demat Account:
Account Opening Fee
- Charges for Dematerialization of Share Certificate
- Charges for Rematerialization of Share Certificate
- Conversion of Mutual Fund Units
- Destatementization Charges
- Restatementization Charges
- Redemption Charges
- Safety or Custodian Charges
- Transaction Charges
- Postal Charges
- Annual Maintenance Charges
Why 5paisa?
The following are the benefits of a Demat account:
- 0% brokerage
- Easy and paperless
- All-in-one account