How to open Demat account: Ultimate Guide for Beginners

Mani Karthik

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A Demat account is an account that helps investors buy and sell shares electronically. It is similar to a regular bank account, but instead of holding money, it holds shares. Opening a Demat account is simple and easy, and can be done online in just a few minutes. Here is a step-by-step guide on how to open a Demat account.

difference between Demat & Trading account

A Demat account is an account that is used to hold securities in an electronic format. A trading account is an account that is used to trade securities. The main difference between a Demat account and a trading account is that a Demat account is used to hold securities, while a trading account is used to trade securities.

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The Benefits of a Demat Account

A Demat account is an account held by an individual with a Depository Participant (DP) which enables him/her to hold securities in an electronic format. Earlier, investors had to keep physical copies of their securities like shares, bonds, debentures, etc. which used to be a cumbersome and risky process. But, with the advent of Demat accounts, they can now store all their securities in a Demat account in a paperless and much safer manner.

There are many benefits of having a Demat account which are as follows:

1) Increased Safety: Physical securities are prone to theft, fraud, natural calamities, etc. But, when they are stored in a Demat account, they are completely safe as they are stored in an electronic format.

2) Easy Transfer: The process of transferring physical securities is very tedious and time-consuming. But, with Demat accounts, the transfer of securities is very quick and easy.

3) No need to maintain physical records: Maintaining physical records of securities is a very difficult task. But, with Demat accounts, there is no need to maintain any physical records as everything is stored electronically.

4) Reduced paper work: Demat accounts help in reducing the paper work involved in transactions of securities.

5) Quick and easy settlements: The settlement of trades in a Demat account is very quick and easy as compared to the settlement of trades in a physical form.

6) Access to multiple products: Demat accounts give investors access to a wide range of financial products like shares, bonds, debentures, etc.

7) Cost-effective: Demat accounts are very cost-effective as there are no charges for storing securities in them.

8) Flexibility: Demat accounts offer a lot of flexibility to investors as they can hold securities in them in any desired quantity.

The Different Types of Demat Accounts

A Demat account is an account that holds your shares and securities in an electronic form. It is very similar to a bank account where you keep your money. The main difference is that instead of keeping money in a Demat account, you keep shares and securities.

There are two types of Demat accounts:

1. Individual Demat account

This account can be opened by any Indian citizen who is above 18 years of age. An individual can open only one individual Demat account in their lifetime.

2. Joint Demat account

This account can be opened by two or more individuals. A joint Demat account can have either a ‘joint-holders with survivor’ or a ‘joint-holders with equal rights’ status.

The Different Types of Demat Accounts

1. Basic Services Demat account

This account is best suited for investors who do not trade frequently. The annual maintenance charges (AMC) for this account are low as compared to other types of Demat accounts.

2. Full-service Demat account

This account is best suited for investors who trade frequently. The AMC for this account is higher than a basic service Demat account but it provides additional services such as online trading, research reports, etc.

3. Discount Demat account

This account is best suited for investors who trade frequently and want to save on brokerage. The AMC for this account is lower than a full-service Demat account but the brokerages are also lower.

4. Corporate Demat account

This account is opened by a company for the purpose of holding its securities. Only companies can open a corporate Demat account.

5. NRI Demat account

This account can be opened by any Non-Resident Indian (NRI) who wants to invest in the Indian stock market.

The Charges Associated With Opening a Demat Account

There are three types of charges associated with a demat account – account opening charges, annual maintenance charges and transaction charges.

Account opening charges are the charges levied by the depository participant for opening a demat account. These charges can be in the form of a one-time fee or a periodic fee. Annual maintenance charges are the charges levied by the depository participant for maintaining the demat account. These charges are levied on a yearly basis. Transaction charges are the charges levied by the depository participant for each transaction carried out in the demat account.

The account opening charges and annual maintenance charges can vary from depository participant to depository participant. However, the transaction charges are fixed by the Securities and Exchange Board of India (SEBI).

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How to Open a Demat Account

Documents required to open a Demat account

A Demat account is required to hold securities in an electronic format. This account can be opened with a Depository Participant (DP) which could be a bank, broker or any other financial institution.

The following documents are required to open a Demat account:

1. Proof of identity: Passport, PAN card, Voter’s ID card, Driving License, Aadhar card
2. Proof of address: Passport, Voter’s ID card, Driving License, Aadhar card, Utility bills
3. Photograph
4. Bank account details
5. Signature specimen

The process of opening a Demat account

A Demat account is an account that is used to hold investments in the form of dematerialized or electronic form. In India, a Demat account is mandatory for anyone who wants to trade in shares and securities. The process of opening a Demat account is very simple and can be done online as well as offline.

The first step is to choose a Depository Participant (DP) with whom you want to open your Demat account. A DP is an agent of the National Securities Depository Limited (NSDL) or Central Depository Services Limited (CDSL), which are the two depositories in India. Once you have chosen a DP, you will need to fill out an application form and submit it along with the required documents.

The next step is to open a trading account with a stockbroker. You will need to fill out an application form and submit it along with the required documents. Once your trading account is opened, you will need to link it to your Demat account.

The last step is to transfer the shares and securities that you want to hold in your Demat account from your physical account to your Demat account. This can be done online or offline.

How to Open a Demat Account in ICICI

ICICI Bank offers a 3-in-1 account which is a combination of a Savings Account, a Demat Account and a Trading Account. This account gives the customer the convenience of having all their financial products with one bank.

To open a 3-in-1 account with ICICI Bank, the customer first needs to open a Savings Account with the bank. The next step is to open a Demat Account with ICICI Bank by filling up the Demat Account Opening Form and submitting it along with the required documents. The last step is to open a Trading Account with ICICI Bank by filling up the Trading Account Opening Form and submitting it along with the required documents.

The documents required to open a 3-in-1 account with ICICI Bank are:

1. Passport size photograph

2. Proof of identity (PAN Card/ Passport/ Voter ID Card/ Driving License)

3. Proof of address (Utility bill/ Passport/ Voter ID Card/ Driving License)

4. Cancelled cheque leaf

5. Bank account statement for the last 6 months

6. Income proof (salary slip/ ITR)

7. Demat account statement for the last 6 months (if applicable)

8. Trading account statement for the last 6 months (if applicable)

9. KYC form

10. PAN Card

How to Open a Demat Account in HDFC

If you are looking to open a Demat account with HDFC, there are a few things that you need to keep in mind. The first is that you need to have a PAN card. This is necessary in order to be able to open an account with HDFC. The second thing that you need to keep in mind is that you need to have a bank account with HDFC in order to open a Demat account with them. The third thing that you need to keep in mind is that you need to have an initial deposit of Rs.500 in order to open an account with HDFC.

Once you have all of these things, you are ready to open a Demat account with HDFC. The first thing that you need to do is to fill out an application form. This form is available on the HDFC website. Once you have filled out the form, you need to submit it to HDFC. You will then be given a user ID and password. These are the credentials that you will use to login to your account.

The next thing that you need to do is to fund your account. This can be done by making a deposit into your HDFC bank account. Once the funds have been transferred, you will be able to start trading.

How to Open a Demat Account in Axis Bank

If you are looking to open a Demat account with Axis Bank, there are a few things you need to keep in mind. The process is relatively simple and can be completed online or by visiting a branch.

To open an account, you will need to provide some personal information such as your name, date of birth, address, and contact details. You will also need to provide proof of identity and address. The documents required for this will vary depending on your country of residence.

Once you have all the required documents, you can either visit a branch or go online to the Axis Bank website. If you choose to visit a branch, you will need to fill out an application form and submit it along with the required documents.

If you choose to apply online, you will need to create an account on the website and then follow the instructions. Once your account is created, you will be able to log in and start the process of opening a Demat account.

The process of opening a Demat account with Axis Bank is simple and straightforward. However, it is important that you understand the requirements and have all the necessary documents before starting the process.

How to Open a Demat Account in SBI

The process of opening a Demat account with the State Bank of India (SBI) is quite simple and can be done either online or offline.

If you choose to open your account offline, then you will need to visit your nearest SBI branch and fill out the necessary paperwork. The account can be opened within a few days.

If you choose to open your account online, then you will need to first create an account on the SBI website. Once you have registered on the website, you will need to log in and click on the ‘Open Demat Account’ link.

You will then be required to fill out an online form that will ask for your personal details as well as some other information. After you have submitted the form, you will be given a unique customer ID and password.

With this customer ID and password, you will be able to log in to your account and start trading.

How to Open a Demat Account in Kotak

If you are looking to open a Demat account with Kotak Securities, you will need to first open a trading account with the broker. Once you have completed the account opening process and been approved for trading, you can then proceed to open a Demat account.

The process to open a Demat account with Kotak Securities is quite simple and can be completed online in just a few minutes. To begin, you will need to log in to your Kotak Securities account and click on the ‘Open Demat Account’ link.

This will take you to the account opening form which you will need to complete in full. Once you have done this, you will need to submit some documents for verification. These include your KYC documents, PAN card and bank account details.

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Once your documents have been verified, your Kotak Securities Demat account will be opened and you will be given a unique account number. You will then need to fund your account before you can start trading.

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