Saturday 23 September 2017

How to Open A Demat Account?


What is Demat Account?

In the context of Nepal, before 2073 B.S., shares used to traded physically in paper form and trading wasn't possible until and unless investor will meet with the broker. But now this trend has been changed. Since 2073 B.S., shares are traded in computerized form. Hence, there will be no use of 'paper' or any other 'material'.

So, basically, a Demat account is simply opening an account in the concerned bank like in Nepal, Global IME bank limited, Siddhartha bank limited, are providing the facility of opening the Demat account with some certain subscription fee whereby the investors can purchase and sell in Demat form.

The Trading Process:







How to Open A Demat Account?

You have to first make a choice regarding the depository participants. There is so much competition here and hence a wise choice would be choosing the one with dedicated services and low brokerage cost. The following documents are normally required:
  • Photocopy of Citizenship Card
  • 2 Passport size Photos
  •  Subscription fee may or may not be required depends upon the bank
These documents along with few signatures on the application form are all one need to start a demat account. And that is when you can start trading.

Keep investing.
Thank you.

No comments:

Post a Comment