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How to open Demat Account?

  • Highlights

  • Demat Account can be opened in 10-15 minutes

  • It is 100% online and paperless process

  • Fill your basic details and upload KYC documents

Opening a demat account is simple and can be completed in a few steps. Demat Account stores the shares digitally when you trade online. Since shares are traded in digital mode today, Demat accounts is essential to get started with online trading.

Before we get to the steps to open Demat Account, it is important to know about Depository and the Depository Participants (DPs). Depository are the entities where shares are stored digitally and the agents of depositories, known as depository participants, provide the facility to open demat account. National Securities Depository Limited (NSDL) and Central Depository Services Limited (CDSL) are the two depositories in India, with several stockbrokers, banks and financial institutions registered as depository participants. You can view a list of the DPs on the website of the depositories. Bajaj Financial Securities is a depository participant with both NSDL and CDSL.

Step by Step Procedure to Open a Demat Account

You can open a demat account without stepping out of your home. The entire process is digitized and can be completed in less than 10-15 minutes with just a mobile phone. Detailed below are the steps that will help you open a demat account-

  1. Search for depository participant: Select a DP with whom you want to open your demat account. Consider the reputation of the DP and whether it can provide the specific services you are looking for.

  2. Provide Basic Details: Once selecting a DP, next fill up an online account opening form on DP’s website. In the beginning you will need to provide basic details like your name, phone number, email, address, etc. You will also need to add your PAN Card details.

  3. Add Bank Details: You need to add bank details like account number, account type, IFSC code, etc. Adding bank account is essential since it is used for crediting any amount payable to you, like dividend, interest, etc. by the issuer company whose shares you might hold in the demat account.

  4. Document upload: Upload your photo, and the documents related to your proof of address and proof of identity to complete this step.

  5. In-person verification: Since the entire process is digitized, you can perform verification by yourself at your home. No need to wait for an agent from the DP to visit you and confirm your identity. Just record a short video of yourself, reading out the given script (your name, PAN number, address, etc.) and submit it to complete the step.

  6. E-sign: Most DPs will provide you the option to sign your application digitally using Aadhar linked mobile number. It is a convenient and secure method and reduces paperwork.

  7. Form Submission: Once you have finished these steps, you can submit your form and your demat account will be created shortly. You will receive details of your account like demat account number, and the login credentials to access your account.

Additional Read: What is Demat Account

Charges to Open A Demat Account

To avail the services of a Demat Account, certain charges are levied. These charges vary across the DPs and can be broadly categorized under Account opening charge and Annual Maintenance charge. Demat Account opening charge is waived off by some DPs. For example, with Bajaj Financial Securities the Demat Account opening charges are nil. There are subscription packs that give investors option to choose different brokerage rates while trading. Annual maintenance charge is a recurring fee charged from the Demat Account holder by the DP for maintaining their Demat Account.

What are the documents required to open a Demat Account?

To open a demat account you will need to submit the below documents:

  1. Pan Card

  2. Your photo

  3. A copy of your signature

  4. Proof of Identity – Your PAN card will serve as the proof of identity

  5. Proof of address – Any of these documents can be submitted- Aadhar Card, Voter ID, Passport, Driving License, utility bill (not more than 3 months old)

Additional Read: How to Start Trading Online

Benefits of Demat Account

A Demat Account has several benefits. Let's have a look at some key benefits of Demat Account:

  1. Store all your shares in digital format: Before digitization, the shares existed as paper certificates. Storing and handling them was cumbersome. With demat account you can store all your shares electronically.

  2. Get safety and security: Since your shares are stored in digital format, it stays safe and secure. It eliminates the risk of theft or forgery associated with physical copies of paper certificates.

  3. Get an overview of all your shares at one place: This is a great benefit of demat account that you can view the details of all your shares at one place. It makes it easier to keep a track of them.

  4. Necessary for online trading: Demat Account is essential for online trading. When you buy a share, it needs a repository to get stored. That storage space is your demat account. Hence it is necessary to have a demat account for trading online.

  5. Easy transfer of shares: Since shares are stored in digital format in a demat account transfer of shares become fast and easier. Unlike physical shares, it cuts down paperwork to zero and makes the transfer of shares extremely convenient.

How to open Demat Account FAQ’s :-

How much does it cost to open a Demat account?

Demat account opening charges are waived off by some brokers. However, certain charges are levied by brokers for account maintenance. Brokerage charges are also levied and these charges vary across brokers.

You can open a free Demat account if you sign up for the Freedom Trading Pack from Bajaj Financial Securities. With this pack, Demat AMC for the first year is NIL and for the second year, it is Rs.365+GST.

How can I open a Demat account for free?

You can open a free demat account if you sign in for the Freedom Trading Pack from Bajaj Financial Securities Limited.

The procedure can be performed in a paperless manner at the convenience of your home. Fill in the basic details and submit your KYC form and you are good to go. Demat account is imperative to perform online trading.

How much time does it take to open a Demat Account online?

To open a Bajaj Financial service Demat account it takes 10-15 minutes of your time.

As the process of opening the Demat account can happen online, it is easy and convenient for the investors. The procedure is absolutely paperless and hassle-free. By filling a few basic details and keeping KYC documents ready, you have got your Demat account ready.

Can an NRI open demat account?

Yes. NRIs can open a demat account with any Indian brokerage but have to use their specific accounts for bank transactions. The following types of demat accounts are available based on the type of bank account used.

  • a. Repatriable Demat account: This demat account is for NRIs who can transfer the funds overseas. The account has to be associated with an NRE account.

  • b. Non-Repatriable Demat account: This demat is also for NRIs, but they cannot transfer their funds abroad from it. It has to be first linked to an NRO account.

Do I require a Demat Account for SIP?

No. It is not compulsory to have a demat account for SIP. However, with increasing avenues to invest, a demat is a one-stop-shop for trading in all securities including mutual funds and SIP. Having all your investment through the same account can save you the effort and hassle of maintaining multiple logins and accounts. With a demat account, you can also view your entire portfolio with periodic updates.

How to get Demat Account?

  • To get Demat Account, you must have a PAN Card and valid documents for proof of address and proof of identity.

  • Once this is met, you can visit the Account Opening form on the website of Depository Participant.

  • Fill the form and upload the necessary documents (PAN, Proof of Address, Proof of Identity, Bank Proof)

  • E-sign the application

So, what are you waiting for? Open a Demat Account today and start your investment journey!

*Account opening is free for Freedom Pack, with zero Annual Maintenance Charge (AMC) for 1st year & Rs. 365+GST from the 2nd year.

Disclaimer: Investments in securities market are subject to market risk, read all the related documents carefully before investing. Visit our website for other Terms & Conditions.

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