Owning a demat account is an absolute necessity when you want to try your luck in the stock market. So, are you also curious to know about the NSDL demat account opening?
Wait, what? NSDL? What, in God’s name, is it? Is it a stockbroker?
Fret not because, in this article, we will cover all the essential things related to NSDL demat account opening.
National Securities Depository Limited (NSDL) is one of the largest depositories in India. Established in August of 1996, it handles most of the dematerialized securities held and settled in the Indian capital market. If you wish to know more about it, click here.
So, it is fair to say that the depository participant acts as a link between the customer and NSDL.
You can open the NSDL demat account in two ways.
Let us begin by discussing the procedure to open an NSDL demat account online.
NSDL Demat Account Opening Online
In the fast-paced and digitally advanced world, it is bliss to know that you can open an NSDL demat account online. So, if you want to know the procedure to NSDL demat account opening online, continue reading.
Given below are the steps that will make your process of opening a demat account easy.
As we know now that it is the depository participant that acts as an intermediary link between the user and NSDL, it is essential to pick the right one.
There are various DPs that are registered with NSDL.In addition to this, multiple stockbrokers are functioning as Depository Participants. There are banks and also investment companies that provide DP services in India.
There are various factors that you should keep in mind when choosing a Depository participant.
Convenience – Although all the stockbrokers offer online services it good to choose a DP that is nearby and easily accessible.
Reputation – You should always go where there is your comfort level. Look for DPs that have a good record and reputation. Check the past records and also whether they have the services that you need or not.
Cost – Always compare the cost and the level of services that your DP is providing.
If you want to know which all Depository Participants are registered with NSDL, all you have to do is visit the website and check the list there.
2. NSDL Demat Account Opening Form
After you have chosen a Depository Participant of your choice, you have to fill a form by visiting the website of the respective stockbroker.
Fill in all the basic details like Name, mobile number, email address, PAN card details. Here is one such form for you:
Once done you are redirected to a new window, where you need to submit some more information like your Aadhaar card number and bank detail.
Post this, upload the documents essential to open an NSDL Demat Account.
Choose the trading segment and submit the charges imposed by the broker to activate your demat account.
Also, you can apply for the account opening process offline. For this either download the form from the website or visit the nearby branch from where you can collect the form and proceed further with the offline account opening process.
After you have completed the KYC norms, you will have to go through a mandatory verification process. After you have submitted all the documents, the authenticity and accuracy of your documents will be checked.
This process can be done either online or the representative visits your place to verify your details.
It is only after this process is completed that you can move on to the next step.
4. Sign & Complete the Agreement
After the successful verification of the documents, you will sign an agreement with your Depository Participant. The DP will give you specific information after the demat account is successfully opened.
These details include,
Client master report (contains all the necessary details of your demat account)
‘Right and Obligations of the Beneficial owner and Depository Participant.’
The DP ID is an eight-digit code that the NSDL allots to all the associated DPs.This aids the process of identification.
You should also make sure that you check the Client master report to ensure that all the details are correctly registered.
In this way, you can successfully open an NSDL demat account opening.
After you have successfully filled the details in the form, you have to proceed and complete all the KYC norms.
In this, you will require various documents that include proof of identity, address proof, income proof, and details of your bank account.
NSDL Demat Account Opening Documents
Proof of Identity
Driving License, Aadhar card, UID, Passport, etc.
Ration card, Rent agreement, Voter’s ID, Passport, etc.
At Least 3 copies
Proof of income
Required for Futures and Options trading.
It is mandatory for opening a demat account.
Bank Account details
A cancelled cheque can work as the bank account details.
You should keep these documents handy before applying for an NSDL demat account opening. It will help to ease the process and make the opening process a smooth walk. After producing all these documents, you move closer to opening a demat account.
NSDL Demat Account Opening Charges
When you open an NSDL demat account, some charges are certainly levied in the process. As we know that we do not directly open an account with NSDL, but with the stockbrokers registered with NSDL.
It is now obvious that the charges are also levied by the stockbrokers and not directly by NSDL.
During the earlier times, high demat account opening chargers were very prominent. With the passage of time and a lot of stockbrokers competing with each other, the prices have comparatively gone down.
To get a general view, let us look at the demat account opening charges of some of the brokers.
NSDL Demat Account Charges
Name of the Stockbroker
Account Opening Charges
IIFL Demat Account Charges
Zerodha Demat Account Charges
Sharekhan Demat Account Charges
Motilal Oswal Demat Account Charges
HDFC Securities Demat Account Charges
When we talk about NSDL demat account opening, we are talking about opening a demat account with a Depository Participant registered with NSDL.
The procedure is also very straightforward. You have to choose your DP and then you will be guided through the entire process. After the submission and verification of the documents, your demat account will be an easy task.
We hope that you are now clear about the process and documents required to open an NSDL demat account.
At the same time, if you need us to help you out in the process further, well, why not?
Just fill in this form here and we will call you up right away: