What is a Demat Account?
A Demat Account, often known as a dematerialized account, is a one of the prerequisites for trading in securities. It is an account used to hold shares and securities that have been bought or dematerialized, thus facilitating online trading. You can hold several securities, like stocks, ETFs, bonds, and mutual funds in your Demat account.
What is dematerialization?
Dematerialization is the process of moving a stock certificate or holding papers from the physical form to an electronic form. Dematerialization is a more accurate form of maintaining records.
Importance of Demat Account
- A Demat account prevents the loss of documents and speeds up the entire process of buying and selling stocks.
- Demat account simplifies the entire investment journey for an investor and helps them track all their diversified investments at one place in one view.
- It helps investors to participate in an upcoming IPO in an easy and simplified way.
How does a Demat account work?
The objective of a Demat account is to store the shares. This is linked with a trading account that is used to buy and sell shares. The shares that you have bought will be then stored electronically in your Demat account.
When a 'buy' order is placed from a trading account, the exchange looks for a seller who wants to ‘sell’ similar quantity of the same stock. Once the exchange finds a match, it will then notify the respective clearing houses to complete the settlement process and the electronic delivery of the stocks bought in the ‘buyers’ Demat account.
Demat and Trading Accounts
Demat and Trading accounts are different things and investors should not confuse between them. A Demat account is used to store shares electronically, and a trading account is used for buying and selling shares. The objective of both may be different, however, today both Demat and Trading Accounts are offered together to customers to make the process of investing in stock market hassle-free.
Types of Demat account
Let us look at the various types of Demat Accounts:
- Regular Demat Account:This is only for Indian citizens, who reside in India.
- Repatriable Demat Account:This type of Demat account is for Non-Resident Indians (NRI). Once a customer becomes NRI, they need to close their regular Demat account and open a Non-Resident Ordinary (NRO) demat account along with Non-Resident External bank account, which is a must for Non-Resident Indians.
- Non-Repatriable Demat Account:This is a Demat account for NRIs, however, the funds cannot be transferred abroad through this account. Users will also need a NRO bank account for this.
Open Demat and Trading Account Online
With Bajaj Financial Secures Limited, open free Demat Account and get one of the lowest brokerage rates with multiple unique offerings.
Account Opening Charges
Opening Charges |
Free* |
Brokerage Charges |
₹ 5/order* |
Application Process |
Online within 15 minutes |
Demat AMC |
Free |
Trading Products |
Equity/Derivatives/MTF |
Benefits of opening Demat Account with Us
It is Free
You can open free Demat and Trading Account through the Freedom subscription pack.
Apply in IPO
With a Demat Account, you can apply in IPO and profit from listing gains.
Access from anywhere
You can securely access your account on desktop and mobile.
How To Open Demat Account Online
The digital process of opening a Demat & Trading account has made trading much easy for all the traders and investors. It is as simple as ordering food online or shopping from any e-commerce site.
To open a Demat account, one needs to select a stockbroker who is SEBI registered and is a Depository Participant at NSDL &CDSL.
Online Demat Account Opening process
Step 1: Visit the Demat Account Opening Form
Click open an account and start filling your application form to open online demat account. Enter mobile number and email ID and get started.
Step 2: Enter your PAN Number, basic details, address, and Bank details
Update the required basic details like PAN number which is a mandate and bank details to link with your demat & trading account.
Step 3: Upload the soft copies of KYC documents.
Once you fill all the details, you are required to upload your scanned documents for KYC purpose such as income proof, bank details, photograph etc.
Step 4: Complete In Person Verification (IPV)
In-Person Verification is a process where you record yourself for 30seconds with the intention of verifying the authenticity of your documents. While recording, keep your PAN and other documents handy with your as you need to read all the details clear and loud.
Step 5: E-sign the form using Aadhaar linked mobile number.
Do a signature on white background and upload as e-sign in the form where required along with your mobile number linked to your Aadhaar Card.
Step 6: Review & Submit the application
Check the complete application to ensure correct details and submit the application.
Documents Required for Opening Demat Account
PAN Card: It’s a mandatory document to open a Demat account. Ensure the picture and signature are clearly visible
Photo:
A passport size photograph
eSignature:
A running signature on a white background paper
Address Proof:
Any one of these documents - Voter ID, Driving License, Aadhar Card, Passport, Utility Bill (not more than 3 months old) or last 3 months bank statement
Bank Proof:
Anyone these documents - Cancelled cheque, passbook, bank statement of 6 months. Ensure clear visibility of IFSC code and bank a/c number
Income Proof:
This is required only when you want to trade in Futures & Options. You can provide any one of these documents – Bank statements for 6 months,
Net-worth certificate, 3-months’ Salary slips, ITR statement, Demat holding statement or Holding report
Disclaimer :Investment in securities market are subject to market risk, read all related documents carefully before investing.
Reg Office:Bajaj Auto Limited Complex, Mumbai –Pune Road Akurdi Pune 411035. Corp. Office: Bajaj Financial Securities Ltd., 1st Floor, Mantri IT Park, Tower B, Unit No 9, Viman Nagar, Pune, Maharashtra 411014. SEBI Registration No.: INZ000218931 | BSE Cash/F&O (Member ID: 6706) | NSE Cash/F&O (Member ID: 90177) | DP registration No : IN-DP-418-2019 | CDSL DP No.: 12088600 | NSDL DP No. IN304300 | AMFI Registration No.: ARN – 163403. Website: https://www.bajajfinservsecurities.in/