| August 05
How to Open Demat Account Online in 5 Easy Steps
If you plan to invest in equity shares, then you need a Demat account — the term meant for trading and investing. The savings modes have evolved among people, where stocks and shares have replaced the traditional fixed deposit savings.
Since a Demat account is necessary to invest in, you should be aware of the procedure to open a Demat account online. In this article, we help you with the five steps to easily open a Demat account online.
What is a Demat Account?
Demat account refers to a medium with which anyone can hold their securities and stock market shares. These securities could be Government securities, bonds, Initial Public Offerings (IPOs), mutual fund units or even Exchange Traded funds (ETFs).
Apart from ensuring the security of the financial investments you make, a Demat account can also streamline the maintenance and management of the investments.
Why do you need to open Demat Account Online?
The simplest and most secure way to safeguard your shares or assets is to have a Demat account. It protects your assets against loss, theft, damage, forgery, etc. With an account online, you can easily transfer the shares to your account digitally once the deal is authorized. A Demat account online helps you to trade using either your computer or your smartphone. Hence, you don't have to go to a stock exchange for your deals. With no stamp duty included in the transfer of your shares, opening a Demat account online can save your cost in the transaction fees.
How to open a Demat Account online?
- Visit the Depository Participant’s website
Choose a secure Depository participant website and visit the page. Depository participant is the bank, financial institution, or an agent with whom you wish to open a Demat account
- Select option ‘Open Demat account’
Once you select your preferred DP website , choose the option ‘Open Demat Account’ and take actions as per the instructions on screen.
- Complete the Demat account opening form using all details and submit
Complete the form online with all the relevant details and your required information like phone, email address etc. You will now receive an OTP before you move further.
- Submit all the necessary documents to open Demat account
Share your banking details and PAN details. Provide your pan number and banking information which you can utilize to proceed with the transaction.
- Complete your e-KYC processing
Verify and authenticate your KYC information digitally. You can now receive your Demat account number.
You have now successfully completed all the steps required to open a Demat account online.
Documents you need to submit while opening a Demat account online
While you need to open a Demat account, you should keep the following documents ready to enter details and for verification purposes:
- Passport size photo
- PAN card
- Signature (copy)
- PAN card or valid proof of identity
- Valid address proof- Aadhar ID, Voter ID, Driving License, Passport, Recent utility bill (less than 3 months old)
- Passbook copy or bank statement that support the bank account details
- A Cancelled cheque
- Payslip or IT return when you wish in derivative or currency market
While you learn how to open Demat account online, the aforementioned points can help you with a hassle free account opening process. With a Demat account online you can earn great profits compared to investment instruments. Since an investor would be able to access the account from anywhere across the world, an online Demat account makes sure you have convenient access anytime.