Stock Market Learning Blog


Friday, May 15, 2020

Pre-required things to open Demat account in India

Pre-required things to open a Demat account in India???

Hi investors today we are going to discuss about what are the pre-required documents to open a Demat and trading account in India, who are interested to enter into a market world, this is a basic concept to understand to open a trading and Demat account, most of the peoples are interested to enter the market but they don’t know where to start and how to start.

Once upon a time when I am a beginner even I to don’t know those things and I am really confused with these, yesterday evening I talked with my close friend Jeevan regarding the stock market he asked me many doubts about the shares and stock market I guided him to open a demat account, I received some questions flowing in my mind still now generally many of the persons are don’t know this and all, so I decided to write an article about how to open a demat account and this article is for you beginners.

Pre-required documents to open a demat account;

  1. Pan card: Pan card (or) permanent account number without pan card I can’t open the Demat account, it is a part of overall documentation to open a demat account, it is one of an id proof
  1. ID proofs:

Id proofs are nothing but address proof like

  • Adhaar card
  • Voter ID
  • Driving license
  • Address proof
  • Passport
  1. Bank account details
  2. Bank statement ( 3 months)
  3. Cancelled cheque
  4. Passport size photo’s (4 enough)

Those documents are a part of open a trading and demat account, overall with a signed copy.

And there is another few requirements to open a demat account and trading account

  • Savings bank account
  • Laptop/computer
  • Internet connection

Before going to invest I suggest you some pieces of advice before investing :

  1. Set a goal
  2. Invest some amount of your savings
  3. First Pay your debts
  4. Select your broker (full-service or Discount broker)
  5. Read some investment books
  6. Follow some strategies

Some other few additional points to do regularly:

  • Start with a small amount
  • Invest regularly
  • Diversify your asset allocation
  • Invest what to understand
  • Believe the company
  • Don’t invest on tips and advice
  • Be patient
  • Avoid herd mentality
  • Beginners invest in blue-chip stocks
  • Continue your learning

Hope it’s helpful to you who are new to market……

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