Online demat account opening is quite an easy and simple process, which can be completed in a few steps in the comfort of your home at your convenience. A demat account essentially allows you to begin trading online and store all of your shares digitally. Hence, it is crucial that you, as an investor, know how to open a demat account and use it to build and grow your wealth. This article is your guide to opening a demat account; it answers questions like what is a demat account, what documents you need in order to open a demat account, and what charges apply when you open a demat account, so let’s take a look. 

What is a demat account, and how does it work?

A Demat account is short for a Dematerialised account, which is now essential to trade in the stock market. Its objective is to store the shares you invest in electronically. Here, you can hold several securities such as stocks, shares, EFTs, Bonds, mutual funds, and more, and all of your physical share certificates get converted into a digital format, which allows you to access it from anywhere on demand. Now that we have a clear understanding of what a demat account is, let’s look at how you can open demat account. 

How do you open a demat account?

With a demat account, you no longer have to step out of your house physically. You can complete this process in about 10 to 15 minutes with a demat account app on your mobile phone. The following are detailed steps on how to open a demat account. 

Step 1: Look for a depository participant:

When you are looking for a depository participant (DP), you need to conduct thorough research about the different apps and all the perks they provide and choose the one that best fits your needs. You also need to consider the DP’s reputation and whether it provides the specific services that you are looking for. 

Step 2: Provide your details:

Once you have decided upon a DP, you are required to fill the demat account opening form on the app or website. Here, you need to provide basic information such as your name, email ID, phone number, home address, and PAN card details. 

Step 3: Add your bank details 

The app will ask you to fill in details such as your account type, account number, IFSC code, etc. Adding a bank account is essential since it can be used to credit any amount to any payable amount. 

Step 4: Upload your documents:

To complete this process, you must upload your photos and documents related to proof of identity and address. 

Step 5: In-person verification 

This process, too, is digitalized. You can choose between having a video conference with their employee where they can verify the documents, or you can choose to have the verification at home, where the employee visits you. You will need your Aadhar card, bank card, and a few more documents to complete this process.

Step 6: E-signs:

Most DPs allow you to sign the documents digitally using an Aadhar-linked mobile number. This method is very secure, saves time, and reduces paperwork. 

Step 7: Submit the form:

Once you have completed the above six steps,you can submit the form, and your instant demat account will be created. You will then receive your demat account number and other essential credentials.

Types of charges for a demat account:

• Account opening fees
• Annual maintenance charge (AMC)
• Pledging charges 
• Un-pledging charges 
• Dematerialised charges 
• Rematerialized chargers
• DP chargers 

To summarize, opening a demat account is a quick and simple online process that you can complete at your convenience. It will be ready in about 15 minutes. All you have to do is provide your personal and bank details, upload the necessary document, sign, and go through a verification process. It’s that simple.