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Why Opening a Demat Account Is Important for Investors

Are you a newbie in the share market? You may not aware of the details of the stock exchange till now. Here, you will get some information about investing in the share market and getting a good return. Today, the internet has made everything quite easy. Your activities in stock exchange have been also influenced by the internet. How? Just by a demat account. Actually, demat account is the medium through which investors can buy and sell shares in a more secure way through the internet. You don’t need to make trips to the stock market and all details of your shares will be available on the internet. To get all these benefits, you just need to open a free demat account. Now, before opening a demat account, you need to know certain things about it.
Is There any Charge to Open Demat Account?

There are certain media where you don’t need to pay anything to open a demat account. You just need to pay the annual maintenance charge to open the account. That charge also depends on the type of account.

Is It a Time-Consuming Process?

If you are patient enough to wait for one or two weeks, you can open a free demat account as it requires that time only. To open a demat account, you need to go through the verification process of the information you mentioned on the account opening form and it will take some time. The details, you mentioned on the form, will be verified by the depository participant. After the processing of the application, you will get a welcome kit with details of your account and password. These details will be used to maintain your account and also you can trade in the stock market with these details. You don’t need to have any balance on this account to open it. Demat account is very important to trade in the stock market.

Types of Documents Needed to Open a Demat Account

Demat account is kind of similar to any other bank account. Therefore, you will be needed certain identity proof to open the account. Here are those-
  1. PAN Card with a Current Photo- This is the most important document that every account opener must have except those who are particularly exempt from getting PAN card.
  2. Proof of Address- You have to produce documents that contain your address clearly. You can submit your voter ID card for that.
  3. Provide Your UID Number- UID or Unique Identification Number must be presented during opening a demat account. That’s why you need to provide your Aadhar card or passport or driving license or Voter ID card.
  4. Utility Bills- You also have to provide utility bills like telephone bill, electric bill or gas bill and that must be only 3 months older, not more than that.
Here, you get some detailed account of demat account. Do you want to open a demat account and start trading in the stock market? Knowing these details will definitely help you there.
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