Demat account | How to open demat and trading account online
How to open demat and trading account online  |  Photo Credit: BCCL
New Delhi: Over the last few months of lockdown, retail investors’ participation in the market has seen exponential growth and the stellar gains that people have made in the markets.
If you are wondering how to do the same but aren’t sure of the safety of your money and the process of opening a Demat account, here’s a simple explainer designed to help senior citizens navigate the process of opening a Demat account by simply using their mobile phone.
Any individual over 18 years of age can open a Demat and trading account digitally. Mandatory documents for the same are PAN, bank account, identity, and address proofs.
- Financial documents including cancelled cheque, bank statement, income proof, signature copy, and PAN card copy
How to open a Demat account online in minutes:
- Step 1: Pick a depository participant: The first thing you have to do is pick a depository participant. It can be an authorised bank, a financial institution or a broker with who you want to open your Demat account.
- Step 2: Opening Demat account: Go to the chosen depository participant’s website and click on open Demat account tab. Fill in your basic details like name, mobile no, and email ID. Some brokers even allow opening Demat accounts using Aadhaar.
- Step 3: Pay account opening fee: Pay the account opening charge to your broker through net banking or credit card.
Re-look at maintenance charges
Opening a Demat account comes with a small convenience fee. Before getting started with your Demat account, read the document carefully for charges associated with it, such as Demat account opening, maintenance, transaction, and custodian fees. These charges are different for every financial partner.
Getting professional help
As your start your financial journey, it is crucial to have an unbiased view on investment tools that work in your favour. Here, certified professionals can help you with drafting a purposeful financial plan as they have been assisting more than five crore customers across over 200 branches in kick-starting and sustaining their financial journey.
A Depository is like a bank where securities are held in electronic form. There are two Depositories in India – National Securities Depository Limited (NSDL) and Central Depository Services (India) Limited (CDSL). Under the Depositories Act, investors can use the services of these Depositories through Depository Participants (DP).
Note that it is important to add a nominee while opening the account. Once your account opening application is processed, you will get a Demat account number and a client ID. The depository participant will assign you a Beneficiary Owner Identification Number that will be needed for all your future transactions in the account. You will receive a welcome kit from your provider in a week or two.