How to open Demat Account?

Are you interested in stock market and want to invest in shares? For that you need to open a Demat account and trading account.

But what are these accounts? Are both Demat Account and Trading Accounts important? How to open a Demat Account online? Read on to understand as to how to open a Demat Account.

What are Demat accounts and How Do They Work?

To start trading in share market, you need to know what are Demat Accounts and how do they work. A Demat Account is where your shares are held in dematerialized form. This makes trading faster and safer and more efficient to store securities and execute trades. Furthermore, with the help of Demat Accounts, share certificates are converted from physical to electronic format which makes them easily accessible by account holders.

The Demat Account is held with two depositories – NSDL (National Securities Depository Limited) & CDSL (Central Depository Services Limited). However, they provide Demat Account through the Depository Participants (DPs). Today, most stockbrokers are depository participants and are also registered with the Stock Exchange, hence, they provide Demat & Trading Account to clients.

Benefits of Opening a Demat Account With BFSL

From the house of Bajaj, Bajaj Financial Securities Limited has been a leading stockbroking firm for quite some time now. It is a 100% subsidiary of Bajaj Finance Limited. It is one of the few stockbrokers registered with both National Securities Depository Limited (NSDL) and Central Depositories Service Limited (CDSL) which enables you to choose from any of the two. Mentioned below are some of the benefits you get when you choose to open an account with BFSL.

  • Fully online process – Demat Account Opening through BFSL is 100% online.
  • Free Account Opening - BFSL allows opening of free Demat Account through its Freedom Subscription plan.
  • Low Brokerage – BFSL allows one to enjoy the benefit of low brokerage rates with its Demat and Trading account.
  • Multiple product benefits – By availing of BFSL’s Demat and Trading account, you can easily invest in shares, ETFs, equity Futures and Options, Bonds, IPO.

Procedure of opening a Demat Account

Opening a Demat Account is a simple process. Below is the step-by-step guide on how to create a Demat Account:

  • Step 1: Apply for an online Demat Account: To start with your Demat process through any Depository Participant, you are required to submit your basic information like mobile number, email ID, Date of Birth etc.
  • Step 2: Submit your KYC details: To open a Demat Account, it is mandatory to submit the KYC (Know Your Customer) details. It includes your proof of address and proof of identity. PAN Card is also a mandatory document required to open Demat Account.
  • Step 3: Documents verification: After you have submitted your details, your application is reviewed by the stockbroker. The details you provided are matched with the proof documents.
  • Step 4: Get your Login ID: Once your application is successfully verified, and account is successfully opened, you will receive your login ID and password to access your Demat & Trading Account.

Documents required for opening a Demat Account

For opening a Demat Account you are required to submit the below documents:

  1. Identity Proof: A copy of your PAN card can serve this purpose. Ensure that your photograph and signature on the PAN card is clearly visible.
  2. Income Proof: You are required to submit any one from the following:6-months’ bank statement, Net worth certificate, 3-months’ salary slip, Income Tax Return (ITR) statement, Demat Holding statement, Holding Report
  3. Bank Proof: You are required to submit any one from the following: Cancelled Cheque, Passbook, Last 6-months’ bank account statement
  4. Address Proof: You are required to submit any one from the following: Passport, Driving License, Voter ID, Aadhaar Card, Last 3-months’ bank account statement
  5. Signature: A signature on white paper is required (It is matched with the signature on PAN card).
  6. Photograph: A passport size photograph is required

Types of Charges Associated with Opening a Demat Account

Now that you are familiar with how to open a Demat Account, you must know that it comes with specific fees and charges. Some of the types of charges associated with a Demat Account are as follows:-

  1. Annual Maintenance Charges
  2. Account opening charge
  3. Brokerage charge
  4. Transaction charge
  5. Charges for Dematerialization of Share Certificate
  6. Charges for Rematerialization of Share Certificate

With Bajaj Financial Securities Limited, you can open an account through one of the subscription packs each offering different brokerage rates.

Checkout the different subscription pack and charges levied just by clicking to the below URL: Subscription Pack and charges

Why do you need to open a Demat Account?

In India, it is mandatory to open a Demat Account if you want to invest in share market. Just like knowing how to open a Demat Account is important, similarly there are other factors that determine the importance of having a Demat Account:

  1. Safety: Maintaining and storing physical certificates can be risky and tiresome, since there is high risk of certificates getting lost or damaged. With Demat Account, this issue is solved as it stores the share certificates in digital format.
  2. Easy accessibility: Since your share holdings are visible in your online Demat Account, it becomes easy to access them from anywhere and at any point of time.
  3. Holds multiple securities: It does not merely help store the shares, but also helps hold other financial securities in electronic form, like bonds, debt securities, etc.
  4. It is mandatory for equity trading in India.
  5. It is a necessity while applying for IPO (Initial Public Offering) as the allotted shares get credited to the specific Demat Account.

Conclusion:

Opening a Demat Account is a simple, easy and smooth process. Keeping this in mind, you can create Demat Account online at Bajaj Financial Securities Limited within 15 minutes. As opening of a Demat Account is a prerequisite if you want to invest, it’s important that you are familiar with the steps of how to open a Demat account. To know further in detail, kindly click here.

Open Demat & Trading Account

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FAQs on How to Open Demat Account

There are three types of Demat Accounts: Regular Demat accounts, Repatriable Demat Account and Non Repatriable Demat Accounts.

It is possible for an NRI to open a Demat account. One needs to complete the requisite account opening process with the Depository Participant (DP).

Online account opening is very simple if you choose a reputed online brokerage firm. You can apply from their website and upload the necessary documents as per the requirement. For that you need to have a mobile number registered with your Aadhar number to open a Demat Account.

To open a Demat account with Bajaj Financial Securities Limited, you need to:-

  • Visit the Demat Account Opening form.
  • Fill in essential details like PAN number, Aadhar, address and Bank details.
  • Update the necessary details for example PAN number and bank details to link with your Demat and Trading account.
  • Upload the soft copies of your KYC documents.

Once you’re done filling all the details, you need to upload scanned documents such as income proof, bank details etc. for KYC purposes.

  • Visit the Demat Account Opening form.
  • Complete the IPV which is the In-Person Verification process.
  • Use your Aadhar linked mobile number and E-Sign the form.
  • Make sure you review your application before submission.

The charges for opening a Demat Account online will depend on the brokerage. In BFSL, you can open an account free of cost through the Freedom Subscription Pack.

Yes, it is possible to add nominee in your Demat Account.

Of course, an individual can open multiple Demat Accounts with different Depository Participants.

Yes, the Demat account can be transferred. The respective client needs to sign and duly fill the Client Master List (CML) copy and share with the broker for transfer to take place.

Yes, it is compulsory to have a Demat Account to apply for an IPO in India.

Having a Demat Account isn’t mandatory to make investments in SIPs.

Once the selling of shares is done, the money is reflected in your Demat Account after T+2 days. After that, money withdrawal from your Demat Account is possible through your trading account.