InvestorQ : What is the process of demat account opening?
Priyanka N made post

What is the process of demat account opening?

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Neelam Naik answered.
3 years ago
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The first step is to decide on your DP. Normally, when you open a trading account, the trading account and DP account are with the same entity for simplicity. The list of DPs is available in the websites of depositories: CDSL (Central Depository Services (India) Ltd and NSDL (National Securities Depository Ltd). NSDL and CDSL are the two principal depositories and there are hundreds of depository participants (DPs) where you can open and operate your account.
The next step is documentation. This is an elaborate procedure and you need to ensure that all photocopies of the documents are self-attested and you need to carry along the originals for verification.
The third step to opening your account is to submit your proofs of residence and your proofs of identity. The DP accepts government issued ID cards with photograph as proof of identity and includes passport, Aadhar Card, driving license, voter identity card, pension card etc. For proof of residence, the DP will accept one of the above documents with latest address or may insist on additional proof in the form of rent agreement, sale deed, electricity bill or landline bill. PAN card is a must and has to be submitted apart from the other documents.
You will have to sign an agreement with DP in the depository prescribed standard format, which gives details of rights and duties of investor and DP. You are entitled to receive a copy of the agreement and schedule of charges for future reference.
The DP then opens your account after verifying all the details will allot the demat account number. This is also called beneficial owner identification number (BO ID). All your purchases / investments in securities will be credited to this account. If you sell your securities, your demat account will be debited. When you apply for an IPO, you will have to mention the combination of your DP id and your BO id.
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