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How To Operate A Demat Account | Motilal Oswal

In the world of trading and investing, the word u201cdemat accountu201d is commonly used. With nearly 4 million Demat accounts opened in 2018, a 13 percent rise over the previous year, the popularity of these accounts has reached new heights. The jump is largely due to Indiansu2019 drastic change in savings patterns from conventional instruments to available alternatives such as stocks.

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How To Operate A Demat Account | Motilal Oswal

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  1. How To Operate A Demat Account What is Demat Account? An Instructional Guide for Using a Demat Account Online

  2. What is Demat Account? • Your wealth can be increased and kept safe by using demat accounts, which make share trading quick and easy. The risks and challenges associated with physical share certificates are removed. If you wish to invest in the stock market in India, you must open a Demat account. • In the past, share certificates were used to store shares in a tangible manner. But it made the whole process of exchanging shares time-consuming and difficult to carry out quickly. • To alleviate these limitations, the National Securities Depository Limited (NSDL) was established in 1996. Demat accounts were created so that stock and securities may be stored online. You must convert any physical shares you own into electronic records before using a Demat account. This procedure is frequently referred to as dematerialization.

  3. An Instructional Guide for Using a Demat Account Online Following is the process of how to operate a Demat account. • Selecting a DP The first step in opening a Demat account is choosing a depository participant (DP). In India, DP services are provided by banks, stockbrokers, and online investment platforms. Select a DP whose offerings fit your needs in terms of both items and features. • Fill out the demat account opening form and send it in To open a Demat account, go to your DP's website and complete the online Demat account opening form there. Numerous depository members, like as IIFL, allow you to open accounts for both trading and depository purposes. • Examine KYC guidelines The Know Your Customer (KYC) requirements must be met after the Demat account application has been submitted. Scan copies of KYC documents, such as identification and address proofs, bank account statements, and proofs of income, must be submitted in order to do this. It is a good idea to have all necessary papers on hand before applying in order to speed up the application procedure.

  4. Carry out the verification procedure Your DP will ask you to finish a "In Person Verification" (IPV) procedure. This task must be completed in order to confirm the accuracy of your records. You could be required to appear in person at one of your service provider's offices, depending on your DP. However, many users of depository platforms now provide IPV services online using a camera or a smartphone. • Copies of the Agreement to Sign You'll be required to sign a contract with your DP after completing IPV. This Agreement sets forth the obligations and rights of the Investor and the Depository Participant. • Obtain your BO Identification Number Once this is complete, your DP will begin processing your request for a Demat account. Upon approval of your application, you will be given a special Beneficial Owner Identification Number (BO ID). You can access your Demat account using this BO ID.

  5. Thank You

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