It is important to add a nominee while opening the account. Once your account opening application is processed, you will get a demat account number and a client ID
New Delhi: Lockdown and the unlocking thereafter have been a hard-hitting experience for most in the country, but more so for senior citizens. Over the last few months of lockdown, retail investors’ participation in the market has seen exponential growth and the stellar gains that people have made in the markets from the comfort of their home are astonishing.
If you are wondering how to do the same but aren’t sure of the safety of your money and the process of opening a Demat account, here’s a simple explainer designed to help senior citizens navigate the process of opening a Demat account by simply using their mobile phone.
Documents needed:
KYC
Financial documents including cancelled cheque, bank statement, income proof, signature copy and PAN card copy
How to open demat account online in minutes:
Step 1: Pick a depository participant: The first thing you have to do is pick a depository participant. It can be an authorised bank, a financial institution or a broker with who you want to open your demat account.
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Step 2: Opening demat account: Go to the chosen depository participant’s website and click on open demat account tab. Fill in your basic details like name, mobile no, and email
ID. Some brokers even allow opening demat account using Aadhaar.
Step 3: Pay account opening fee: Pay the account opening charge to your broker through net banking or credit card.
A Depository is like a bank where securities are held in electronic form. There are two Depositories in India – National Securities Depository Limited (NSDL) and Central Depository Services (India) Limited (CDSL). Under the Depositories Act, investors can use the services of these Depositories through Depository Participants (DP).
Note that it is important to add a nominee while opening the account. Once your account opening application is processed, you will get a demat account number and a client ID. The depository participant will assign you a Beneficiary Owner Identification Number that will be needed for all your future transactions in the account. You will receive a welcome kit from your provider in a week or two.
