Online Demat Account

Demat Account

Before you begin investing in shares, there is one important account that you need to set up. Yes, you guessed it right - the demat account. With Indians warming up to financial investments, demat accounts are being opened up at a pretty fast pace. About 40 lakh demat (dematerialized) accounts were opened in 2018, taking the total number of such accounts to over 3.48 crore. In this article, we will explain to you what it is a demat account, how to open a demat account online, and key things to remember as you do these activities. Read on to know more.

The word demat is a short form of 'dematerialized'. A demat account provides with a facility to hold shares in electronic format. In a way, it is very similar to a bank account. While a bank account holds your money in electronic format, your demat account holds shares/securities. A demat account allows you to transfer and receive shares, without using actual physical share certificates.

For investing, one needs to have a demat account for trading. Let us find out how to open demat account

Many people ask: how to trade in share market in India. It begins by having 3 things in place - a demat account, a bank account and a trading account

A demat account holds shares/securities. Brokers have tied up with either NSDL or CDSL (both are DP). Like a bank account, a demat account has to be opened with an appropriate institution.

Many investors become worried when they hear that they have to open a demat account. Truth is there is nothing to worry. Like a bank account, opening demat account is extremely easy and fast. There are just 4 steps.

What is the First Step?

  • Step 1: choose a Depository Participant (DP) to open the account with. A beneficial owner (BO ) account is opened with the depository.

Is There Any Form Filling And Documents Required For Opening Demat Account?

  • Yes, an account opening form is required to be filled in with all the investor details, together with the supporting documentation copies of proof of address, proof of identity, proof of income etc. A PAN card is mandatory to open the account. All documentation should be presented in original as well for verification.

What Happens After This Step? Will Someone Verify Information?

  • You will be provided with a copy of the rules and regulations as well as the necessary charges to be paid to your DP. An in-person verification will be conducted by a representative of the DP to confirm all the details and documentation provided by the investor.

When Will The Demat Account Be Opened?

  • Once approved and documentation is submitted, your Demat account is opened and operational. This may generally take up to two weeks.

Once the account is set up, you can use the details to access your demat account online and begin online trading account activities.

As a demat account holder, please remember you will would need to know the charges for demat account annual maintenance. There will also be transaction fee that will be levied for debiting securities to and from the account.

Both the annual maintenance fees and transaction fees may be waived off for limited period. But, every service provider will charge them once the 'free period' is over. These fees differ and every Depository Participant has a different structure.

Also, do remember that a demat account can be opened with zero balance of shares. This means it does not require that a minimum balance of shares be maintained in a demat account.

Here is a broad list of documents that can be used as proofs for Demat Account Opening.

  • PAN card
  • Voter ID
  • Passport
  • Driver’s licence
  • Income Tax returns
  • Electricity bill
  • Ration card
  • Telephone landline bill
  • Bank passbook

These documents will be required to meet the proof of identity and proof of address requirements for opening a demat account.

Proof of identity - For this, one can use PAN card, voter's ID, passport, driver's licence, Income Tax returns, electricity bill, telephone bill etc. ID cards with applicant's photo issued by the government, among others, can also be eligible as proof of identity.

Proof of address - For this, one can use ration card, passport, voter ID card, driving licence, bank passbook or bank statement etc. Verified copies of electricity bills, telephone bills (residence), identity card or a document with address issued by the government also is accepted, among others.

There are plenty of benefits for you to open an account with Nirmal Bang

  • Zero account opening charges *
  • Experience margin trading facility on existing demat holdings
  • Enjoy dashboard view of all your investments i.e. stocks, mutual funds, gold ETFs, at one place
  • Get free daily intraday trading tips and fundamental/technical calls, among others to benefit from the stock markets
  • No separate DIS slip required for selling or purchasing of stocks when power of attorney is activated
  • Get Rs 5 lakh personal accident insurance*
  • Get Rs 50,000 accidental mediclaim *
  • Enjoy full access to Beyond app, the best online share/stock market trading mobile app for Google Play/App Store (Apple)

* Conditions apply. Understand full benefits from Nirmal Bang representative.

Conclusion - As you can see, getting a demat account is easy. We hope the article has been able to provide you with information on how to open demat account. So, don't wait. Stock markets are buoyant and today is a good time to begin your demat account opening process. With this share market account, create a new chapter in your investment journey and profit from Nirmal Bang's association.