Demat Account Opening: An investor can open the Demat account with any Depository Participant (DP). DP is a financial institution or broker that allows trading on its platform.
New Delhi: Every IPO arouses the interest of investors in the stock market. This interest is especially high nowadays because of the upcoming LIC IPO. The IPO is expected to be India’s biggest IPO to date. According to media reports, the market cap of LIC may rise to Rs 22 trillion after the listing of its shares.
This will make LIC the largest company in the country. Currently, the position is held by Reliance Industries with a market cap of around Rs 16 trillion. Also, the wide policyholder base of 29 crores keeps the hopes high for the success of the IPO
To apply for the IPOs, one needs to have a Demat account. It allows applications for IPOs, trading of shares and mutual funds and also facilitates the trading of government securities.
Read More : LIC files draft papers for upcoming IPO: Here are the key takeaways
What Is A Demat Account?
Demat stands for Dematerialisation. It facilitates the conversion of physical share certificates into digital format. This facilitates easy handling and maintenance of records. An investor can open the Demat account with any Depository Participant (DP). DP is a financial institution or broker that allows trading on its platform. They are agents of central depositories.
In India, there are two central depositories, NSDL and CDSL. A DP must be registered with either of the two to be able to provide trading services. For the unversed, any investor can hold more than one Demat account linked to one PAN card.
Also, there is no required minimum balance to be maintained in the Demat account.
Read More : LIC IPO: LIC-Aadhaar Linking, Having Demat Account Must to Buy Shares; How to Do Them
How To Open Demat Account Online?
- First, visit the authorised website of the DP of your choice.
- Click on ‘Open Demat Account’
- Enter the required details like Name, Address, Mobile Number etc.
- You will receive an OTP on the mobile number, enter it in the box displayed on the screen.
- Now, enter the PAN details and Aadhar details on the website.
- After successful submission of the details, you will receive mail or a call from the DP to confirm the details of the account
How To Open Demat Account Offline?
- After deciding on the DP, you need to fill out the designated form and the KYC form.
- Attach passport-size photographs and the photocopies of the following documents with the form- PAN Card, Cancelled Cheque, Residence Proof and ID Proof.
- For verification, carry the original copies of the documents too.
- After submission, the DP will contact you and inform you about the details of the Demat account.
