Nidhi is perplexed by how traders make lots of profit in the share market. She also wants to make money by investing in profitable stocks and for that, she knows she needs to open a demat account. But she was having no idea of how to begin or where to open a demat account.
Like Nidhi, do you also need more information about where to open a demat account? Well, then this article is going to be of significant importance for you as it carries all the information you need regarding your query.
A demat account is the most basic component of trading in the stock market. The first step of trading or investing is to buy the shares. Once you purchase the shares, the demat account comes into the picture which helps you store your bought shares in a digital form.
Only when you open a demat account, you can begin your investment journey in the stock market. Trading is not possible without a demat account. And a Demat account can be opened by following a few simple steps. Let’s understand how.
Where to Open Demat Account in India?
In India, the entire stock market operations follow a hierarchy where they are regulated by the Securities and Exchange Board of India (SEBI). Then come the two Depositories namely NSDL and CDSL who then regulate the Depository Participants (DPs) on their own levels.
Demat accounts in India are opened with these Depository Participants only who are also called the Stockbrokers in other words. These stockbrokers are registered with various exchanges that decide what kind of trading segments a particular broker will provide to its customers.
In a nutshell, you can open your demat account with a stockbroker who is regulated by stock exchanges, Depositories, and SEBI to ensure transparent trading activities.
Now that you know where can you open a demat account, it is also important to know the modes of opening demat accounts, i.e, the offline and online demat account opening.
Opening a demat account online is the most convenient way of opening any demat account. It doesn’t need you to visit the offline branch of your stockbroker or to your nearest post office to deliver the account opening form.
Here the foremost step is to choose a stockbroker, which can be done by considering the following factors:
Research and advisory
Ease of trading
Once you choose a stockbroker, all you are required to do is to sit comfortably with all the required documents, visit the official website or the smartphone app of the stockbroker, fill out the demat account opening form, submit it and verify all your documents with an in-person online KYC process.
Let’s give a better explanation for the same. To open a demat account with any of the stockbrokers, begin by gathering all the essential documents like:
Scanned Copy of Photograph
Scanned Copy of Signature
Salary Slip or Bank Statement (to activate derivatives segment)
Once you have all the above documents, open a demat account online by visiting the broker’s website:
Click on “Open a Demat Account.”
Enter Name, Mobile Number and City.
Verify the mobile number by entering OTP.
Now enter your PAN card number.
Enter the Aadhar card details.
Fill in the basic details, (Name, Occupation, Age, Income, etc).
Now enter the bank details with which you want to link your demat account.
Now different stockbrokers charge different fees for demat account opening but these days, most of them charge no money to bring more customers.
Along with the account opening fee, the stockbrokers also charge an annual maintenance charge at the time of account opening. Just like the account opening fee, most stockbrokers waive off the demat account AMC for the first year to fetch more customers.
With no account opening charge and no AMC for the first year, opening a demat account becomes free if you open the account with some selected stockbrokers.
Account Opening Charges
Account Maintenance Charges
₹200 (Equity Account)
₹300 per annum
₹300 (Commodity Account)
₹300 per annum
₹400 per annum
₹20 per month (from second year)
₹450 per annum from second year onwards
₹25 per month
The entire procedure of opening a demat account is very seamless and absolutely free too, with a lot of stockbrokers. Some stockbrokers do charge a minimal amount though.
However, if the demat account opening process has bothered you before, be sure it is highly convenient and it just takes 5-15 minutes to open your demat account online. However, if you prefer your demat account to be opened in an offline manner, you can simply visit the branch office of your stockbroker and fill out the required form.
And in case you need to assist you with your demat account opening, you can just fill out the following form and we will take care of it: