To earn well and have more regular income is much required by the people in this age. There are not many options available with, to have more income and in such situation, people always look for the options that can help them get more income. The share market is known for its opportunities in trading and investment avenues that can help the people to fetch good profit if the trading is done rightly. There are various sections in the market where the trader can trade. However, as per the market rules one needs to have a demat account first before going for any investment or trading in the share market.
The demat account:
The word Demat stands for dematerialization. In the last decade of the 20th century, the computerization was introduced to the Indian stock market. At the same time, the paper shares were also banned, and only paperless copies were issued. The Demat account is an account where these paperless copies also known as electronic copies of the shares can be parked. Hence every trader or investor now needs to have a demat account first before initiating the trading.
The demat account:
The demat account is a mandatory account by the SEBI, and one can get it opened through any broker or broking house in the market. There are only two institutes which can open the demat account. They are CDSL and NSDL. They are authorized by the SEBI. To get the best Demat account one can check with the brokers as some of them charge the annual maintenance charge of the Demat account while some of them wave it off. Hence in such case one can save a good amount on the charges of the demat account also.
How to open the account?
Getting the demat account opened is not that difficult now. There are a few documents of the person one needs to submit on whose name the account is to be opened. There are sets of documents as per the KYC process from which one can submit any of the few documents. One document is required for the Identity proof of the person which means the document must have a photo on it. Here one can provide a copy of a valid driving license, Aadhar card, PAN card or Passport. Another required document is address proof, which must not be old than three months. Here one can provide a copy of electricity bill, telephone bill. Gas line bill, Aadhar card or even a copy of passport as both of these cards have addresses also on them. Even the driving license can work as both proofs if it is valid and has the same address where one lives presently.
One also needs to provide a canceled cheque for the proof of banking. One needs to sign the form of the application for opening the Demat account. Once the completed application in all respect goes for the process of account opening, one can get the number and other details within a week of submission of the documents.