Exchange rate forex – Some Steps for Opening a D-Mat Account

Many banks are taking out there IPO's and most of the people are interested in investing money in the IPO's which comes up. In this condition you need to open a "d-mat account".

A d-mat or ‘dematerialized' account will holds the shares in electronic form by saving you the bother of holding shares in paper form. Providing a d-mat account is now a prerequisite for every stock market investments.

You can open a d-mat account in banks or in financial institutions and also in stock broking houses. The broking houses in such cases also act as Depository Participants inter-mediating between the depositories like CDSL or NSDL and the investor. For opening first you need to submit an application to a DP and some of the required documents. Once you have a d-mat account to your name, you can open a trading account with a broker of your choice.

The shares bought and sold are reflected in your d-mat account. Any previously held physical share can also be dematerialized and transferred to the account.

The DP, at regular intervals will provide an account statement by showing the balance of shares in your d-mat account and transactions during a period. Some steps can help for opening a d-mat account:

First you have to look for the institutions offering DP services. You have two options for choosing a bank/financial institution or a stock broker who provide you the DP services. The factors which help you in the selection should be the charges and location convenience. The fees charged for DP services differ across the industry. Though the rates change, the charges normally categorized under the following heads: Account Annual opening fee, Annual maintenance fee and the Transaction fee.

Apart from this the depository participants will charge service tax as applicable. A bank or other DP might sometimes waive the initial account opening fees. It is better to choose a bank for holding your savings account for long, then much of the paper work would get simpler and documentation will not take much time, as you are already known to the banker.

The Documents required for opening a d-mat account:

A set of documents need to be provided to the agent at the time of opening account are:Completed account opening form and passport size photos;PAN card as proof of identity;Copy of the bank passbook/cashPassport/voter ID/ ration card as a proof of addressSign the DP-investor agreement.

Open account forex :  By submitting the complete set of documents, the agent will complete the other formalities with the depository and facilitate opening of the account. A unique account number (BO ID- Beneficiary Owner Identity) is given which will serve as a reference number for all further transactions. Then you also collect delivery instruction (DI) slips from the DP. A DI slip has to be filled and sent to the DP on every delivery make. DI slip is an instruction to the DP to debit your account and credit the broker's account with the specific stock.

It is very important that the DI instruction should reach the DP the very next day after the sale, failing which the securities won't reach the broker and hence the exchange. This could result in auction of the security. The exchange procures those shares at a higher price, and then the resultant loss has to be borne by you, as investor. If there is no d-mat account as well with your stockbroker you can escape this irksome process of sending DI's, and give him a standing instruction (POA-Power of Attorney) for delivery of stocks that you sell.

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