Here we will know more about what it is a Demat account, how to open a Demat account, an online demat account, the procedure of opening a demat account, where to open a demat account, etc. You need to read this article and gain the information relating to online demat account opening before you begin investing in shares as it is an important account that needs to be set up for the trading purpose.
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What is a Demat Account?
A Demat or dematerialization account is more or less similar to the saving account of the bank where an investor or individual holds securities and shares in dematerialized or electronic form for buying and selling purposes instead of keeping money in the bank or account. Also, online trading of securities is done through a demat account.
Documents required to open a Demat Account
For opening a Demat & Trading Account you will need the following documents:
- Passport size photo
- Canceled cheque
- Electricity bill
- Ration card
- Telephone landline bill
- Bank passbook
Proof of Identity Documents
- Pancard
- Passport
- Voter ID
- Driving License
Proof of Address Documents
- Passport
- Voter ID
- Registered Lease or Sale Agreement
- Driving License
- Utility Bills
- Bank Passbook
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Who can open a Demat Account?
Any individual can open a Demat account who is a resident of India where he needs to submit proof of the same as proof of address, proof of income for the purpose of selling and purchasing securities and other instruments with the stock exchanges in India.
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Process of opening Demat account:
It is simple to open a demat account and takes less than or about 15 minutes to do so. So, let us discuss the steps involved in the procedure of opening a demat account.
Step 1: Account Opening Form
Firstly you need to visit the account opening form of the demat and trading and fill the demat account opening form.
Step 2. Basic Details:
Now, you need to fill and provide all the necessary basic details about yourself or the individual who is opening the account as Name, phone number, email id, and PAN Number. Here, you should note that the PAN number is treated as very essential detail in opening a demant as well as a trading account.
Step 3. Bank Details:
Now, you need to provide the details of your bank that will be linked to your Demat and Trading Account. Further, you can also transfer money from this bank or even between Bank Account and the Trading Account.
Step 4. Choose Subscription Plan:
Now, you also need to choose a Subscription Plan for yourself while opening the account, where you can also choose the option of free plan or the affordable plan options are also available that depend on the brokerage. Each plan is different and offers value for your money invested.
Step 5. Upload KYC Documents:
You will also need to upload all your documents that include:
Proof of Identity Documents
- Pancard
- Passport
- Voter ID
- Driving License
Proof of Address Documents
- Passport
- Voter ID
- Registered Lease or Sale Agreement
- Driving License
- Utility Bills
- Bank Passbook
Step 6. In-Person Verification:
IPV (In-Person Verification) is also required to verify your true identity. Here in the IP verification process your video is required telling you as an individual to read aloud the script provided. Where, by following this process you can also directly upload or record it on the window or even pre-record it and then upload it.
Step 7. E-sign through Aadhar:
All the details that are entered by an individual should be re-verified and a digital signature should be put, where you will receive OTP that will be sent on the number linked to your Aadhar card. There is no paper work involved while following this procedure and online demat account opening.
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What are the different or types of Demat accounts?
There also exist types of demat account which are as:
- Regular Demat account: Regular Demat account is used by the traders living as well as residing in India itself.
- Repatriable Demat account: Repatriable Demat account is used by the Non-Resident Indians, through which the funds can be transferred abroad. Therefore, an associated NRE bank account is required for this purpose.
- Non- Repatriable Demat account: non-Repatriable Demat account is used by the Non-Resident Indians when the funds are not or cannot be transferred abroad. Therefore, an associated NRO bank account is required for this purpose.
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Fees & Charges for Opening a Demat Account
The fees and charges levied are highly competitive and transparent and are not a burden on an investor, also some platforms do charge a minimum amount from the investors. Further, the schedule of fees and charges for opening a Demat account is depicted below as:
| Particulars of service | Charges Including GST (in Rs.) |
| opening fee of Account | Rs. 295 |
| Annual Maintenance Charges of Account (AMC) | Rs. 0 (which is for the 1st Year) |
| Dematerialization of share certificates of Account | Rs. 17.7 (as per certificate) |
| Rematerialization of share certificates of Account | Rs. 17.7 |
| Conversion of Mutual Fund units | Rs. 0 |
| Destatementization of Account | Rs. 0 |
| Reconversion of Mutual Fund units into Statement of Account | Rs. 0 |
| Redemption/Restatementization | Rs. 0 |
| Postal charges of Account | Rs 47.2 (as per request) |
Though, these account opening charges can be different for different banks as:
1. canara bank demat account charges
| Depository Participant | CDSL & NSDL |
| Account Opening Charges | Rs 350 |
| Demat AMC | Rs 500 per Annum |
| Trading AMC | Free |
2. bank of india demat account charges
| demat | RS.5 PER CERTIFIACTE MIN RS 70 PER REQUEST PER SCRIP COURIER CHARGES RS 25/- OR ACTUAL WHICHEVER IS MORE |
| Remat | RS 15 PER CERTIFICATE COURIER CHARGES RS 25/ OR ACTUAL WHICHEVER IS MORE |
Pledge Creation |
RS 25 PER TRANSACTION + NSDL CHARGES |
3. indian bank demat account charges
| Depository Source | CDSL & NSDL |
| Demat AMC Charges | Rs 349 per Annum |
| Trading AMC Charges | Free |
| Margin Money | Minimum Rs 5,000 |
4. union bank demat account charges
| demat | Rs 2/- per certificate min Rs 35/- per request + Courier Charges |
| Remat | RS 20/- per certificate min RS 20/- PER RRF + courier charges + NSDL charges Rs 10/- per RRF |
Pledge Creation |
Rs 50/- per transaction to pledgor |
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How to open a Demat account in sbi
You can open a demat account in sbi by following these steps as:
Step 1: Visit the SBI Smart Website
Firstly, you need to visit the website of SBI to create Demat account in SBI.
Step 2: Account Opening Form
you need to visit the account opening form of the Demat and trading and fill the Demat account opening form.
Step 3. Basic Details:
Now, you need to fill and provide all the necessary basic details about yourself or the individual who is opening the account as Name, phone number, email id, and PAN Number. Here, you should note that the PAN number is treated as a very essential detail in opening a Demat as well as a trading account.
Step 4. Bank Details:
Now, you need to provide the details of your bank that will be linked to your Demat and Trading Account. Further, you can also transfer money from this bank or even between Bank Account and the Trading Account.
Step 5. Choose Subscription Plan:
Now, you also need to choose a Subscription Plan for yourself while opening the account, where you can also choose the option of free plan or the affordable plan options are also available that depend on the brokerage. Each plan is different and offers value for your money invested.
Step 6. Upload KYC Documents:
You will also need to upload all your documents that include:
Proof of Identity Documents
- Pancard
- Passport
- Voter ID
- Driving License
Proof of Address Documents
- Passport
- Voter ID
- Registered Lease or Sale Agreement
- Driving License
- Utility Bills
- Bank Passbook
Step 7. In-Person Verification:
IPV (In-Person Verification) is also required to verify your true identity. Here in the IP verification process your video is required telling you as an individual to read aloud the script provided. Where, by following this process you can also directly upload or record it on the window or even pre-record it and then upload it.
Step 8. E-sign through Aadhar:
All the details that are entered by an individual should be re-verified and a digital signature should be put, where you will receive OTP that will be sent on the number linked to your Aadhar card. There is no paper work involved while following this procedure and online demat account opening.
Step 9: Submit
Lastly, you submit your demat account opening form.
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How to open demat account in Canara bank
You can open demat account in canara bank by following these steps as:
Step 1: Visit the canara bank Website
Firstly, you need to visit the website of canara bank to create demat account in canara bank.
Step 2: Account Opening Form
you need to visit the account opening form of the demat and trading and fill the demat account opening form.
Step 3. Basic Details:
Now, you need to fill and provide all the necessary basic details about yourself or the individual who is opening the account as Name, phone number, email id, and PAN Number. Here, you should note that the PAN number is treated as very essential detail in opening demant as well as a trading account.
Step 4. Bank Details:
Now, you need to provide the details of your bank that will be linked to your Demat and Trading Account. Further, you can also transfer money from this bank or even between Bank Account and the Trading Account.
Step 5. Choose Subscription Plan:
Now, you also need to choose a Subscription Plan for yourself while opening the account, where you can also choose the option of free plan or the affordable plan options are also available that depend on the brokerage. Each plan is different and offers value for your money invested.
Step 6. Upload KYC Documents:
You will also need to upload all your documents that include:
Proof of Identity Documents
- Pancard
- Passport
- Voter ID
- Driving License
Proof of Address Documents
- Passport
- Voter ID
- Registered Lease or Sale Agreement
- Driving License
- Utility Bills
- Bank Passbook
Step 7. In-Person Verification:
IPV (In-Person Verification) is also required to verify your true identity. Here in the IP verification process your video is required telling you as an individual to read aloud the script provided. Where, by following this process you can also directly upload or record it on the window or even pre-record it and then upload it.
Step 8. E-sign through Aadhar:
All the details that are entered by an individual should be re-verified and a digital signature should be put, where you will receive OTP that will be sent on the number linked to your Aadhar card. There is no paper work involved while following this procedure and online Demat account opening.
Step 9: Submit
Lastly, you submit your demat account opening form.
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How to open demat account in axis bank
You can open demat account in axis bank by following these steps:
Step 1: Visit the axis bank Website
Firstly, you need to visit the website of axis bank to create demat account in axis bank.
Step 2: Account Opening Form
you need to visit the account opening form of the demat and trading and fill the demat account opening form.
Step 3. Basic Details:
Now, you need to fill and provide all the necessary basic details about yourself or the individual who is opening the account as Name, phone number, email id, and PAN Number. Here, you should note that PAN number is treated as a very essential detail in opening a demant as well as a trading account.
Step 4. Bank Details:
Now, you need to provide the details of your bank that will be linked to your Demat and Trading Account. Further, you can also transfer money from this bank or even between Bank Account and the Trading Account.
Step 5. Choose Subscription Plan:
Now, you also need to choose a Subscription Plan for yourself while opening the account, where you can also choose the option of free plan or the affordable plan options are also available that depend on the brokerage. Each plan is different and offers value for your money invested.
Step 6. Upload KYC Documents:
You will also need to upload all your documents that include:
Proof of Identity Documents
- Pancard
- Passport
- Voter ID
- Driving License
Proof of Address Documents
- Passport
- Voter ID
- Registered Lease or Sale Agreement
- Driving License
- Utility Bills
- Bank Passbook
Step 7. In-Person Verification:
IPV (In-Person Verification) is also required to verify your true identity. Here in the IP verification process your video is required telling you as an individual to read aloud the script provided. Where, by following this process you can also directly upload or record it on the window or even pre-record it and then upload it.
Step 8. E-sign through Aadhar:
All the details that are entered by an individual should be re-verified and digital signature should be put, where you will receive OTP that will be sent on the number linked to your Aadhar card. There is no paper work involved while following this procedure and online demat account opening.
Step 9: Submit
Lastly, you submit your Demat account opening form.
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Can a demat account be opened online?
Yes, demat account opening procedure online is simple to be followed as well as easy. You can open an online demat account just by following few simple steps.
Conclusion:
If you want to know how to start a demat account you can simply read this article and swiftly open demat account as this article tells you all about how to create a demat account, where to open demat account, and all your doubts regarding the opening of demat account. I Hope, now you can create a Demat account easily, and that too in just a few minutes.
Frequently Asked Questions :
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Can you have multiple demat accounts?
Yes, you can have multiple demat accounts that you can link to the same PAN number. Although, these different or multiple demat accounts should be held by different depository participants. So, in simple words, if we tell you then you can not open more than one account with the same broker.
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What are the different or types of demat accounts?
There also exist types of demat account which are as:
- Regular Demat account
- Repatriable Demat account
- Non- Repatriable Demat account
-
Can demat account be opened online?
Yes, demat account opening procedure online is simple to be followed as well as easy. You can open online demat account just by following few simple steps.
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Who can open a Demat Account?
Any individual can open a demat account who is a resident of India where he needs to submit the proof of the same as proof of address, proof of income for the purpose of selling and purchasing securities and other instruments with the stock exchanges in India.
