How to Open Demat Account Online - Step Wise Procedure to Open Demat

If you are planning to invest or trade in the stock market or looking to gather useful information on demat account in India, let’s know about it and the procedure on how to open a demat account.
Demat is an abbreviation of dematerialization, and it is an account where securities are kept in electronic form. For any investor willing to trade or invest in stock market, it is mandatory to hold a demat account. It acts same as a bank account where securities are held in electronic form. All you require is to open a demat account.

Steps to Open Demat Account

• To open a demat account you must choose a depository participant from the websites of depositories i.e. Central Depository Services Limited (CDSL) and National Securities Depository Limited (NSDL).
• Fill the account opening form with the following details:
  1. PAN card
  2. Aadhaar card
  3. Cancelled cheque
  4. Bank statement
  5. Signature
• You will be provided with a copy of rules and regulations, the terms of the agreement and the charges that you will incur wherein you will have to sign and agree.
• An In-Person Verification would be carried out.
• On account processing, your DP will provide you with a demat account number and a client ID to access your account.

Note: Demat account can be opened and maintained even with nil balance

Features of Demat account:

• Convenient: Demat Accounts have given easy access to investors and traders to operate from any place.
• Time saving: Another feature of Demat Account is that it is time saving as trading and transfer of shares is quick, unlike earlier when it would take about a month’s time for the same process.
• Reduces risk: Holding of securities in electronic form removes the risks that used to come with holding physical documents like loss, damage, theft forgery, etc.
• Reduces costs: Demat Accounts have brought down a lot of physical effort that was involved in trading and holding securities earlier resulting in reduction of related charges, as now there is also no stamp duty required on transfer of shares in demat.
• Ease of operation: With the help of demat account various tasks like address change can be done easily and the hassle of corresponding with companies for change of personal details has been eliminated.
• Easy tracking & monitoring: Demat account has made it easy for investors to monitor their investments and track the growth of the investments. Other than monitoring and tracking, investors can see the statements, etc.
• Smooth management: Demat account not only manages smoothly the increasing volume of trade but also, encourages more stock market participants because of the ease and convenience it offers.
• Multiple accessing option: Demat account can be operated from anywhere using multiple accessing facilities like mobile, tablet, web, etc.
• Speed e-facility: As NSDL allows user to send instruction slip electronically rather than physical copy that has made it easy and faster.
• Corporate benefits & actions: In case the company offers corporate benefits, these are automatically made available in the demat account.

Presently, with the help of demat account investing and holding different types of securities have become hassle free, safe and quick. Investors can see all the transactions, documents, statements, etc. at a fingertip with a respective unique login ID and password.
Demat account opening is a very easy and a simple process; also, there is no minimum initial holdings or balance required.

FAQ: How to Open Demat Account