A Demat Account holds your shares in digital form while trading over the internet. As shares are now traded digitally, having a Demat account is necessary to begin online trading. Therefore, investors must understand how to open a Demat account and utilize it to develop their wealth.
With the help of the internet, you can now easily create a Demat account from the convenience of your own home. In this blog post, we will explore how you can easily open a Demat account.
How to Open a Demat Account Online
Let's look into the steps to be followed to open a demat account online:
- Choose a Reliable Brokerage Firm:
Selecting a stock broker or Depository Participant (DP) like that provides online Demat account services is the initial step in starting a Demat account. Make sure to do extensive research to discover a brokerage firm that meets your investment requirements, preferences, and financial constraints. Search for elements like brokerage fees, customer support standards, trading systems, and extra services provided by the broker.
- Visit the Broker's Website or Mobile App:
Once you have chosen a brokerage firm, visit their official website or download their mobile app on Google Play Store and Apple App Store. Currently, most brokerage firms provide a demat account opening app that will enable you to open your dematerialized accounts through your smartphone or computer seamlessly and trade or invest on the go.
- Complete the Online Account Opening Form:
Go to the new account opening section of the company's website or mobile app. There, fill in an online account opening form with your name, address, contact information, PAN card number, Aadhaar card number, bank details, and other related information. Please make sure that you provide the correct details as per your official documents.
- Upload Necessary Documents:
After completing the online account opening form, you should now upload copies of relevant documents for KYC (Know Your Customer) verification. These are basic identification documents like a PAN card, an Aadhaar card copy photograph, and proof of address such as a utility bill or bank statement. Ensure that whatever documents you are uploading are clear and genuine.
- E-Signature And Aadhaar OTP Verification:
Once you have uploaded the needed documents, you will possibly be asked to put in an e-signatory (e-signature) for validation. In addition, some brokerage companies would demand Aadhaar OTP verification to add more security. The e-signature process can be accomplished by visiting the website or app and verifying your Aadhaar through OTP accordingly.
- Agree to Terms and Conditions:
Before hitting the submit button, please go through the terms and conditions, account opening charges, brokerage rates, and other brokerage company policies critically. By accepting these conditions you are therefore consenting that you want to open a Demat account with this company.
- Submit Your Application:
After going through all the necessary steps and confirming the details, then Submit your online account opening application. After successfully submitting your application, a confirmation message/ email will be received acknowledging receipt of your application.
- Wait for Account Activation:
The verification process is initiated by the brokerage firm upon submission of your application, which may take a few days. During this time, DP will verify your KYC Documents & other information as mentioned in the application made by you. Once your account is verified and activated, you will receive a welcome kit containing your Demat account details, login credentials, and other relevant information.
Conclusion
Having a Demat account is necessary for every investor. These days, opening a demat account online is extremely safe and easy, as is finding the right broker who fits your needs.
