How to open a Demat account ?

 

    Demat account means dematerialised or electronic account.It is used for holding shares, exchange traded funds and eCommodities.In India,Demat account is compulsory for share market transactions.Physical shares are almost disappeared after the launch of online trading.
    Demat accounts are offered by Depository participants(DP).DPs are the members of Depositories such as CDSL and NSDL.Most of the stock broking companies are offering demat accounts.You have to submit Know your customer(KYC) details such as Identity proof,Adress proof,Bank proof and PAN details for Demat account opening.You will receive a unique client code, after account is opened.Normally,the application form will contain trading account formalities also.You can buy,sell or hold shares with this 2 in 1 account. 
   Demat account helps you to purchase or sell shares from National stock exchange and Bombay stock exchange.Now,people buy eCommodities such as Egold, Esilver etc from National spot exchange with their demat account.So,Demat account is must for all exchange traded investments.