If you plan to try your hands in the stock market or invest and do transactions without hassles, you should know the tricks and tips. You can do it on your own without the physical presence of a broker. A Demat account is backed by National Securities Depository Limited or NSDL or the CDSL, Central Depository Securities Limited. The Securities and Exchange Board of India again regulates this.
Every account is unique, and the users can store securities to trade and purchase using the account. If you don’t have a broker’s guidance, ensure you know the Demat account in detail.
So, if you have to open Demat account without the help of a broker, you have to follow certain steps for it.
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Prospective investors can follow the steps
- If you want to open Demat account and dematerialize shares and securities, you have to approach with the help of a DP or depository participant like a broker or bank. In this, there are two DPs such as CDSL and NSDL, and there is a difference between these. These are essential in trading and investing in the stock market
- There are banks to offer a three-in-one scheme. Here the investor should have access to a bank, trading, and a Demat account. It is important to have a Demat account without having a trading account. Experts suggest that it is convenient to start with a three-in-one scheme when planning to trade in the stock market
- Investors can’t have a Demat account on their own as it is like a repository of stocks. If an investor has to make a sale or purchase, the investor has to do so using a trading account. The bank is useful in the transaction, and it is to be managed by the broker. It will be offered by the DP in handling trade in the stock market
Therefore, you can open a Demat account without the help of a broker. But you need the assistance of a broker to handle the trading activities that will be done using the trading account. The broker would be paid separately for the fees and duties of a broker.
So, you can open the Demat account without the help of a broker through the DPs. But, if you want to participate in the stock market and go through the transactions smoothly, try to open a trading account with the assistance of a broker or sub-broker registered under SEBI. You can get in touch with a broker who can offer the trading service at a minimum brokerage rate.
List of documents required to open Demat account
If you don’t get the assistance of a broker to set up a Demat account, the procedure can be carried out online. The brokerage firm you work with will give the application and KYC forms. In addition to this, they will request a power of attorney in the name of the person who has signed the application of the trade.
Therefore, with the advent of the internet, you can trade in the stock market without the help of a broker or third parties.
Invest in Stock with Demat Account
You can contact a Depository Partner and help you open a Demat account easily. The process for the same goes as follows:
- You have to find a DP on the website of the NSDL or CDSL
- Now, you have to find a DP, get in touch with them and ask them to help you open a Demat account
- The DP will give an application form. You can fill it up with the correct KYC details and then submit it to the DP
- With this, you have to add a copy of your identity and address proof, and it can be an Aadhaar card version, electricity bill and others
- You have to attach the bank account with the passbook, showing a transaction of the last three months
Here, the DP will verify the necessary details and make the process of opening a Demat account easy. You will get an agreement that will show the details of rights and what an investor should follow. Here, you will also get the username and password required to operate your Demat account.
Wrapping it up
The procedure to open a Demat account has been simplified for the sake of an investor and quickly starting the business online. So, even without the broker, you can easily open the Demat account without using a DP and start investing and transacting online. When operating your Demat account without the help of a broker, you should be careful about the prevailing condition of the market and get adequate information from the DP to follow the right steps. Follow the daily regulatory updates to ensure that your Demat account is safe to operate.
