How to Open a Demat Account in India

Last Updated: July 24, 2021 Approved

A demat account is a medium which allows individuals to convert and retain physical shares in electronic format. Just like you require a bank account for savings and transactions, a demat account is required to hold securities, stocks, debentures, and investments. You may use it to buy or sell stocks. To buy shares, whether offline or online, it is mandatory to create a demat account.

Steps

1
Get in touch with a registered depository. In order to open a demat account, you’ll have to first get in touch with a registered depository participant (DP). For a list of registered DPs, visit the NSDL (National Securities Depository Limited) or CDSL (Central Depository Services Limited) websites.
2
Download the forms. Download or collect the account opening forms from the respective DP’s office or website. Fill up the requested details in the account opening form and provide the necessary signatures. Affix photographs and submit a copy of PAN Card, proof of address, bank statement or other documents as required by the company. Or you can
3
Open an online demat account. With Aadhar number, you can open a demat account online.
4
Select the right broker. The broker who Open Demat Account With Aadhar number.
5
Fill in basic details. Your Name, Mobile Number and Email id.
6
Set password. Set a unique password and don't share with anyone. With help of password, you can continue your online application
7
Enter Pan Card details. Broker fetch your details from a government authorized site, whether you are KRA register or not.
8
Pay account opening charges. Pay account opening charges to your broker by net-banking or credit card.
9
Create DigiLocker. The government approved Digilocker allows you to upload your personal documents. with help of you can share securely your data with your broker.
10
Fill KYC Details. Fill out your personal information including name, mother's name, bank account number, and trading experience.
11
Upload your documents. Please upload your financial documents securely, including a canceled cheque, bank statement, income proof, signature copy, PAN card copy.
12
E-Sign with Aadhar. You will receive OTP (One Time Password) on your mobile number and Email id. Enter both OTP on Aadhar card website for eSign with Aadhar.
13
Wait the turn-around time. It usually takes about a week or two for the welcome kit to reach you, depending on different company policies. A demat account can be opened with zero balance in your account. There is no compulsion to maintain a minimum balance either.
14
Nominate your nominee. It is important that you add a nominee while applying for a demat account. Check and double check the nominee details for accuracy. This will enable the nominee to receive the benefits of your securities in the event of exigencies.
- After opening an account, the DP will assign you a beneficial owner identification number that will be needed for all future transactions. When you wish to sell your shares, you need to coordinate with your broker and give a 'Delivery Instruction' to your DP. Your account will then be debited with the number of shares sold by your DP. You will receive the payment from your broker.
15
Trade. Similarly, when you want to buy shares, inform your broker. The shares that you bought will be credited into your account by the DP. You can also use the trading account linked to your demat account to buy and sell shares online. The DP will provide periodic statements of your transactions

Community Q&A

Question

Is it necessary to have a bank account to create a Demat account?

Community Answer

Yes, it is compulsory. Without bank account you are not able to open it.
Question

Are there any charges to open a Demat account?

Community Answer

Yes. The charges for opening and maintaining a Demat account differ. Research well before you pick up a DP of your choice.
Question

How do I open a Demat account if the account holder is deceased?

Gunjan Chokshi

Community Answer

You cannot open a Demat account in a deceased person's name. If you have physical shares in the name of the deceased, you should attach the death certificate and will of that person and send to the company register for a name change.
Question

How do I open a bank in India?

Community Answer

The RBI will allow you to create an "on tap bank;" the bank would have to be in a private sector.
Question

Can I use a debit card to open a Demat account in India?

Community Answer

No, you cannot use debit card details to open a Demat account in India. Instead, you will need to give your bank account details.
Question

Is it necessary to have a job or income proof to open a Demat Account?

Rajesh Modak

Community Answer

No, income proof is not necessary to open a Demat Account. But you have to link your PAN Card.
Question

Is it necessary to have a broker to deal in the stock market?

Donagan

Top Answerer

No. See How to Buy Stock Without a Broker, How to Buy Penny Stocks Without a Broker and related articles.

Warnings

Never do Leveraged Trading (Future n Options) until you are fully aware with RISK involved.

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Never divulge your Demat account ID and password to anyone and keep it someplace safe

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