Demat Account Opening

Whenever you hear of the stock market, the Demat account always accompanies the discussion. The interest in the stock market has increased several folds in recent years, thus increasing the demand of demand account opening as well.

You need a Demat account if you want to start investment in the share market. In this article, we will talk about,

• Who can open a Demat account
• Demat Account opening process
• Documents needed for opening
• Demat Account Opening Time
• Opening charges of Demat Account

So, let us begin!

Who Can Open A Demat Account

Now that we know that a demat account is necessary for share market investments, you should always check the eligibility criteria.

Let us have a look at who can participate in the demat account opening in India.

• An individual should be a resident of India.
• A member or a HUF (Hindu Undivided Family)
• Domestic Companies that are taxed under the taxation policy of India.
• NRIs (NRI Demat account)
• People who are below the age of 18 years. (minor demat account)

If you fulfill the given eligibility criteria, you can open a demat account in India and start your stock market journey.

Demat Account Opening Age Limit

Wouldn’t it be interesting if you were told that you don’t have to wait for your 18th birthday to open your demat account?

But it is absolutely right. Someone who is less than 18 years of age can also open a minor demat account in India. The demat account should be opened by the parents or guardians in their name.

After the individual reaches the age of 18 years, the broker or the advisory will initiate the process of transferring the minor account to a normal one.

Only delivery trades are allowed on a minor demat account and a minor cannot execute the trades on his behalf. The parents or guardians are responsible for all the happening in a minor demat account.

So, if you are not 18 but see yourself as a stock market enthusiast, you don’t have to wait and can easily open a demat account.

After that you have checked the criteria for demat account opening, let us have a look at how you can open a demat account in India.

Demat Account Opening Process

There are a lot of stockbrokers available in the country where you can open a demat account. You can pick the stockbroker that suits your needs, has an affordable brokerage, and has a good brand identity in the market.

Now, there are two ways in which you can open your demat account.

• Online
• Offline

Choice gives you the facility to open a demat account easily and with both methods. It is a full-service stockbroker and gives you an opportunity to access the research reports and benefit from them, especially if you are a beginner.

Now, let us have a look at how you can open a demat account online.

Demat Account Opening Online

The world is moving towards the world of digitalization and therefore a lot of brokers have also shifted to online demat account opening.

Choice also gives you the facility to open a demat account by sitting at the convenience of your own place.

The procedure to open a demat account online is as follows.

• The first step is to open the website of your selected stockbroker. Make sure that you visit only the official website of the broker to prevent all illegal or fraudulent activities.
• Now enter your basic details like name, phone number, and city.
• After this, enter your PAN card details and date of birth.

• Now enter your mobile number and e-mail and verify the OTPs received on both of them.
• The next section is to enter all your basic details.

• Since the broker offers multiple plans and offers for account maintenance charges, you will be redirected to the page where you can choose an AMC plan according to your needs.

• Upload all the necessary documents.
• After the successful verification, you will be redirected to the NSDL website for e-sign.

• Enter your Aadhar card number and complete the process.

After the successful verification, your account will be opened.

Demat Account Opening Form

There are still a lot of people who don’t trust the authenticity of online formats. You can also complete the demat account opening by filling a form online.

All you have to do is visit the nearest branch of your stockbroker and fill in all the details in the demat account opening form. You also need to submit some necessary documents along with the application form to complete the process of account opening.

You can also download this form from the official website of the broker, fill in all the details, and submit it along with all the required documents.

Now that we are looking at the necessary documents, let’s have a look at all documents you need to open a demat account.

Document Required for Demat Account Opening

The documents required for the opening of a demat account are pretty basic and very easily accessible. If you make a checklist and keep all the documents handy, the process will become easier and smooth.

The list of documents required for the demat account opening is as follows.

• Identity Proof

You can submit a PAN card, aadhar card, driving license, any ID issued by the central or state government, Voter ID card, etc to validate your identity.

• Address Proof

Aadhar cards, utility bills like electricity bills, water bills, rent or sale agreements, etc can be used as proof of address.

• Income Proof

You need proof of income if you want to activate certain segments like derivatives in the stock market. Any ITR return slip, salary slip, bank statement of not more than 6 months old, can be submitted as proof of income.

• Photographs
• Signature

These are all the necessary documents required to open a demat account in India. Although, if you are looking to open an NRI demat account or a minor demat account, you need some additional documents.

It is also very important to note that your aadhar card should be linked to your mobile number so that you can easily complete the process of demat account opening.

Demat Account Activation Time

After the details of opening a demat account, the user always questions when will the demat account get activated?

So, the activation of a demat account depends on a lot of factors including the stockbroker you chose and also the method of opening a demat account.

For example- If you open a demat account online, the process will take less time and your account will get activated within a matter of few hours. It can range anywhere between 2 hours to 48 hours.

But if you are opening a demat account through an offline process, the activation might take up to 7-10 days.

If you open your demat account with Choice Broking, your demat account will be activated within 4 hours of successful document submission and verification.

Demat Account Opening Charges

When you open a demat account then you have to pay brokerage if you are trading. But, you also have to pay some account opening charges. While a lot of stockbrokers let their users open a demat account at absolutely no cost, there is some that charge some amount.

The demat account opening charges can range anywhere between 0- ₹500. On top of this, you also have to pay some monthly or yearly account maintenance charges for the proper functioning of your demat account.

These charges can range from ₹200-₹1500 per year as well.

Choice lets you open a demat account at absolutely no cost. Apart from this, the broker offers flexibility in the demat account AMC charges by providing you the plan in the range of ₹200-₹3000.

Demat Account Opening Refer And Earn

If you find the demat account safe then you can start earning right away by referring the demat account to your friends. It works like any other referral program, wherein you refer a service and on successful activation get paid for it.

There are some conditions if you are looking to refer and earn like,

• You should have a demat account with the broker you are referring your friends.
• There is only a chance to refer the demat account of your same broker and no one else.
• Some brokers set the limit for the maximum amount you can refer in a month. With Choice Broking, you can refer to up to 5 accounts every month.
• You need an activated account of the referee so that you can avail all the benefits of the refer and earn scheme.

With refer and earn, you earn on every account that you refer and get trading. Choice Refer and Earn program gives you ₹250 on every successfully opened demat account. Not only this, but you also get access to ₹250 brokerages by the end of the month.

So the refer and earn scheme gives you a good opportunity to make money by recommending a service to your friend.

Conclusion

A demat account is an absolute necessity if you want to invest in the share market. Before demat account opening, you need to select a stockbroker that not only aligns with your financial goals but also provides you with great services at an affordable price.

The process of opening can be completed in some simple steps and you can open your demat account either online or offline. The online process provides your convenience and is also faster.

If you are looking to start your stock market journey, open demat account today!

FAQ’s

1. How Many Demat Accounts one can have?

This question often bothers a lot of traders. You can open as many demat accounts as you want but only on one condition. You cannot open multiple demat accounts with the same broker. If you are looking for more demat accounts, you can choose different brokers.

2. Where to open a demat account?

There are two different depositories in the stock market and within that, there are various depository participants. You cannot open a demat account with a depository but with a depository participant often referred to as a stockbroker.

3. Can I Open Demat Account Without Aadhar Card?

No, you cannot open a demat account without an aadhar card. SEBI has made it mandatory for all the investors to link their aadhar cards to their demat account for proper regulation.