Who Can Open Demat Account?
In the Indian stock market and investing, many have the least knowledge like where to and how to begin. The process of investing in stocks in the Indian stock market is a very simple and completely online process.
To start, all you need is three basic access as an Indian Citizen they are
- A Bank Account
- A Demat Account
- A Trading Account
A Bank Account is one that you can open with any bank and helps to transfer funds from a Bank account to a Trading account and vice versa. You can open any bank account and have a demat account connected to it.
A Demat account is the one in which you will hold the shares in your names for how long you wish to hold. Whenever you purchase shares from your trading account utilizing the money you transferred from your bank account are being transferred to here. When you sell shares in your trading account then the stocks get debited from your demat account.
Now the major question arises is who can open Demat Account and invest in Indian stocks?
Here, we guide you in detail on who all can have Demat Account and Trade in what all segments possible, with the Demat Account you can trade in stocks, Mutual Funds, Bonds, and other commodities. You can open a Demat Account via a depository participant or broker who is authorized to open a Demat Account, generally, all stock brokers will have the permissions from SEBI and NSE/BSE.
Resident individual: Are you an Indian resident then you are eligible to apply for a Demat Account. According to rules and guidelines, an individual is a resident if he or she stays in India in the relevant previous year for 182 days or stays in India for at least 60 days in the said previous year and for at least 365 days during the 4 years that precede the year in question.
An eligible person can apply for demat account and to Open Demat Account you may click here, complete assistance is available.
Hindu Undivided Family (HUF): HUF is an entity in the form of a single-family unit with combined assets that belong to lineage. This itself is a single unit for all tax records and transactions. HUF can have PAN number and attest to open Unified Demat Account.
Domestic corporate: Domestic companies according to Section 2 (22A) of Income Tax Act 1961 which is paying under Indian TAX guidelines are eligible to Open Demat Account.
Non-resident Indians: NRI’s also eligible to open demat account, they need to attest the NRI Bank Account details to the broker or DP in their account opening form. The transactions are directly connected to the Trading account and NRI Bank account.
Clearing Member (Pool Account): A pool account is a broker’s account where the broker holds the securities belong to their clients. This is the same account in which the DP shares are allowed from the central depositories.
To open NRI demat account in india Click Here
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* The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances.