Simplified: How to Open a Demat Account Online

If you want to invest in stocks, the first step is to open a Demat account. A Demat account is necessary to perform any transaction on the stock market, irrespective of your financial objective. Depository accounts and dematerialised accounts enable you to place securities, including stocks, mutual funds, Exchange Traded Funds, ETF bonds, etc., which are exchanged electronically in order to trade on the stock market. NSDL and CDSL, both supervised by SEBI, provide support for these accounts, which enable you to store your investments. To learn how to open demat account, keep reading the article.

Steps to Open a Demat Account Online

The steps to open a demat account online are as follows. 

Step 1: Choose the DP website

Select a safe and secure data protection site that you are comfortable with, then visit its website page following proper research and consideration. 

Step 2: Choose the option to open a Demat account

Select ‘open Demat Account’ and follow the instructions on the navigation screen as soon as you arrive at your DP website of choice.

Step 3: Fill in the correct information on the Demat Account Opening Form and submit it

To sign up for a free Demat account, complete the online form. Select the required information, such as your phone number, email address, etc., and fill out an online form. 

Step 4: You are going to receive a one-time OTP

You will be given an OTP before moving forward after you fill in your details at the beginning.

Step 5: Make the required documentation available to open a Demat account

Please provide your PAN card and banking information. Enter your PAN number and bank information that will be used to complete the transaction. 

Step 6: Complete the E-KYC processing and receive a Demat account number. 

You will go through an online verification of the details of your KYC. You can easily open a demat account with reputed firms like Kotak Securities which offer e-KYC. They offer demat account opening services along with an online brokerage calculator.

Eligibility for Opening a Demat Account

Any resident of India who has the necessary documents to open a demat account is entitled to open demat account. It is possible for non-Indian nationals who have certain restrictions in SEBI to open a demat account. The appointment of a nominee to your demat account is compulsory, in line with SEBI directives. In accordance with the wishes of the account holder, it is possible to change or update the nominee. 

List of Accepted KYC Documents

You will need some supporting documents to open a demat account. A single proof of identity and an address will be required. A list of supported documentation that is to be used is given below.

Proof of identity

1. Passport 
2. Driver’s license 
3. Voter’s ID 
4. IT returns 
5. A verified copy of your electric and telephone bills. 
6. PAN card Bank attestation 
7. A photo ID card issued by the Central or State Government Identification cards with photographs.

Proof of address

1. Proof that you possess an Aadhaar card 
2. Driving License 
3. Passport 
4. Voter ID

Facilities Available with a Demat Account

A demat account does not only hold your financial assets. It serves many other functions, as mentioned below. 

1. Investment transfer

Any or all of their assets can be transferred to another person by the account holder. Only accurate information is needed by the holder of an account to fill in a delivery instruction slip (DIS) so that all shares or other assets can be transferred without delay.

2. Dematerialisation

Through the dematerialisation process, an investor can decide to convert its physical share certificates or other physical records of securities into electronic form. The account holder must accomplish this by completing the Demat Request Form, which is sent with every DP, and sending it to the DP together with the actual certificates, providing all the information from the physical certificates. Since every type of security has a unique number, investors will need to create separate forms for each deposit. The Depositary shall update the investor’s account and note these changes as soon as it has completed verification of all documentation.

Conclusion

It’s time to go ahead and fill out the application now that you know what a Demat account is and how you can open a Demat account. Check out Kotak Securities online stock trading app to open a hassle-free demat account.