The total number of demat accounts increased to 15.1 crores in March 2024, with new accounts rising to 31 lakhs in the same month. This increase in new Demat accounts is driven by the strong growth of the stock market and growing investing awareness in India.
Previously, shares and other security investments required extensive documentation and actual share certificates. DEMAT accounts have revolutionized investing by digitally storing shares. New investors may find the DEMAT account setup overwhelming, but the online process makes it very seamless.
How To Open a Demat Account Online: 8 Easy Steps Guide
The SEBI-approved process of opening a Demat account follows a set process and mandatory steps, which mainly include:
Step 01: Choose a Depository Participant
Selecting a Depository Participant (DP) is critical when opening a DEMAT account. SEBI-registered DPs permit securities transfers and manage electronic holdings. You must select a DP based on your needs and requirements. When choosing DP, you must also consider factors the following factors:
- Account and Brokerage Charges: Consider the brokerage charges and account fees imposed by the DP. Choose a DP with competitive rate structures.
- Account Features and Services: Assess the variety of services and features provided by the DP for Demat accounts.
- Customer Support and Service: Choose a DP whose customer service is informed and responsive.
- Technological Infrastructure: DPs that offer mobile apps, user-friendly online platforms, and robust security features will assure steady and seamless transactions.
- Reputation and Credibility: It is recommended to consider DPs with a long operational history of delivering dependable service.
Step 02: Complete Online Registration
After selecting your DP, choose a stockbroker you want to open a Demat and trading account. You must provide your mobile number when registering.
Step 03: Provide Personal and Banking Details
Following registration, you are required to provide your personal and banking information. This includes, among other private and banking info, your Permanent Account Number (PAN) and date of birth, which are typically required for verification purposes.
Step 04: Document Submission
You need to upload vital documentation, including identification and address verifications, bank statements, or canceled checks. Ensure that those files are legible and unambiguous to prevent any process delays.
Step 05: Identity Verification Process
In accordance with KYC rules, most DPs demand an in-person verification system. You can complete this with the authentic documents in your possession or wait for the DP agent to visit your home. At some point in this phase, you might be required to record a live photo or video for identification verification.
Step 06: Nominate a Beneficiary
Now, provide your nominee’s name, mobile number, and email to follow up through the process. These details are important to submit when opening a Demat account to ensure that your shares and securities are passed on to the beneficiary in case of your sudden demise.
Step 7: E-Sign the Application
Nowadays, many DPs permit electronic signatures on account establishment forms. In order to proceed, you must furnish this step with either your Aadhaar details or a digital signature certificate.
Step 08: Initiate Account Activation
Upon the final submission of the Demat account opening form, you will be supplied with your account details. After getting your credentials for Demat trading, you can manage all your shares, securities, and holdings.
Conclusion
With this, you have a complete understanding of the process of opening a DEMAT account. The online Demat account opening process eliminates all the hassles associated with the paperwork. Having a DEMAT account offers you access to many financial opportunities and paves your way to seamless investing. It is crucial to keep in mind that the quickly you start, the earlier you can begin realizing the advantages of your investments.
