How Many Types Of Problems Occur While Opening A Demat Account? - Financing Panda: Latest News on Finance, Loan, Business


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Monday, October 17, 2022

How Many Types Of Problems Occur While Opening A Demat Account?

 For decades, the financial markets have been a lucrative top-tier prospect for several investors throughout India. With the advent of the internet, the emergence of online trading platforms has changed how people trade in markets. 

Today, with the help of an online trading platform, individuals can execute trades quickly and securely, wherever they are in the world, without the need to visit a trading house in person.

However, to trade in the market, the only prerequisite is to open Demat account and a Trading account. 

Opening a Demat account is not as complex as it might seem. However, since it involves money, you can research the process, the documents required to open Demat account, and the rules and regulations involved. 

Various problems can occur during the process; thus, it is essential to know how to avoid them.

What are the issues that arise when opening a Demat account?

1. Selecting the right broker 

The first issue that could arise when opening a Demat account is selecting the right broker. 

Various brokers offer such accounts. However, it is crucial to choose a reliable and reputed brokerage firm. 

It is better to read online reviews posted regarding brokers. One can go through the online reviews and get to know which broker offers the best services at the lowest cost. Additionally, question the brokers about the fees and their terms and conditions. Finally, compare the price quotes from different brokers and select the best deal. 

In addition, it is vital to select the right type of broker. The two distinct types of brokerage businesses are full-service and discount brokers.

Compared to discount brokers, full-time brokers offer a wider range of services, including advisory services, research and reports, retirement corpus planning, etc. 

2. Searching for a low-cost Demat account 

The Demat account charges, i.e., opening and maintaining charges, which might differ from one depository participant to another, can be carefully considered. 

These fees include the cost of opening an account; however, some providers may waive this fee. Additionally, yearly maintenance fees are assessed for services provided on the account all year long.

3. Incomplete documents 

To open a Demat account, investors must provide certain documents along with the application. These documents include a PAN card, a passport-size photograph, residential address proof, utility bills and bank statements.

Ensure that these documents are intact and complete before submitting them to the broker. Otherwise, they may reject the application.

4. Online opening process 

Today, it is extremely important that the Demat account opening procedure be as simple and seamless as possible. Most participants in depository systems today have made the procedure online, with a straightforward application form and document submission. 

Choose a service provider that permits paperless account opening with little to no paperwork.

5. Security 

Given the current spike in cyber-attack incidents, the Demat account must have the greatest levels of protection available when data is sent between computers and servers. 

6. Product range 

A good broker will provide a client with reliable trading platforms and enable investing in various financial products, including government securities, stocks, bonds, derivatives, mutual funds, gold investments, etc., all from a single account. 

This makes it simple to compare and manage one’s investments because one can view and track them all on one platform.

7. Online access

Numerous depository participants provide online access to one’s Demat account, providing hassle-free operations and trading. 

Due to this, traders can get access to their portfolio holdings, the value of assets, transaction statements, funds, etc., in seconds. Some of them even provide real-time investment updates and wise financial advice.

However, if these services are not provided online, this can be an issue for the customer. 

Thus, ensure that the broker selected provides these services. 


Investing in stocks has always been an attractive option for many folks. Before choosing to invest in stocks, there are various factors to take into account. Before making investing selections, investors need to assess their risk appetite and personal objectives.

In addition, a thorough understanding of the company, its finances, competitive landscape, and market conditions will help you choose the right stock. 

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