How To Open Demat Account

Due to digitalization, opening a Demat account is easy for individual investors. The Demat account is necessary to transact in the stock market to buy and sell stocks. In this Demat account guide, we're covering the topic: How to Open a Demat Account.

Demat Account Meaning

So, what is a Demat Account, and is it the same as a Trading Account?

When you want to start investing in the stock market, there are two main accounts that come into play – a Demat Account and a Trading Account. While it is easy to confuse between the two, they serve two different purposes and are indispensable to conducting trade transactions across the Stock Market.

Opening a Trading Account facilitates trading transactions in the stock market, whereas a Demat Account stores all the shares that have been bought by you. The Demat Account not only stores stocks but other investment securities such as Mutual Funds, Bonds, ETFs, etc. There are essentially three types of Demat Accounts, i.e., Regular (used by Indian Residents), Repatriable (Demat Account for NRI) that permits the transfer of funds outside India and Non-Repatriable (Demat Account for NRI, which does not facilitate fund transfer outside India).

How To open a Demat Account Online?

Opening a Demat Account online is completely safe as it is compliant with the security measures mandated by SEBI.

Step 1: You need to choose the Depository Participant.

Step 2: Fill out the online form that would require your Basic Details, Address Details, Economic Details, and Bank Details.

Step 3: You also have the option to add a Nominee.

Step 4: Then, you will be required to upload the above-mentioned documents.

Step 5: Complete the in-person verification, an online process that avoids the hassle of physically meeting with your broker.

Step 6: Choose eSign, which speeds up your account opening process.

Step 7: If you are KYC Verified and have opted for eSign. You should get a unique Trading Code/Client ID within approximately 4 hours of successfully completing your registration.

Step 8: Lastly, you will be required to courier the DP the signed copy of the Power of Attorney, which will be mailed to you on your registered email ID at the time of completing registration.

Read More: AMC Charges For Demat Account

How To Open a Demat Account Offline?

If you would like to open a Demat Account offline, you will be required to fill Demat account opening form and physically sign the Know Your Customer (KYC) Form along with all the relevant documents and courier it to Choice India's Head Office.

Address –
Choice International Limited,
Sunil Patodia Tower,
J.B. Nagar, Andheri (East),
Mumbai 400099.