How to open a Demat Account:
- Decide on a Depository Participant (DP), which is an authorized bank, financial institution or broker, with who you want to open a Demat Account. The choice of a DP should ideally depend on the brokerage charges, annual charges &leverage provided.
- Submit a duly filled account opening form and KYC form. Along with this, you will need to attach copies of –
- PAN Card
- Residence Proof
- ID Proof
- Passport-sized photographs
Do carry original copies of all for verification purposes. You will also need to give a canceled cheque for dividend bank details.
- You will then need to sign an agreement that will mention all the rules, regulations, and rights associated with holding a Demat Account. Read them carefully and do not hesitate to clear all your doubts. When this is submitted to the DP, it will be signed by an authorized person and a copy of the same will be given to you.
- When the account is opened, you will receive a unique Client ID from the DP. This, along with other details, will help you get access to your Demat Account online.
- You will also be given instruction slips by the DP, which will be of use for depository services like transfer, purchase, etc.
Note that a Demat Account does not require any ‘minimum balance’ of shares or financial securities to be held in it. Also, you can hold more than one Demat Account linked to a single PAN. However, not with the same DP.
How to open a Demat Account online:
A request to open a Demat Account with any DP can be applied online as well.
- Visit your chosen DP’s website
- Click on the ‘open Demat Account’ tab and submit the following details
- Name
- Email ID
- Mobile Number
- One-time password (OTP) that you will receive
- City
- You will receive communication from the DP to get in touch with you for completing the above-mentioned formalities and opening a Demat Account
Demat account details
Your Demat service provider needs to give you the following details:
- DP ID
- Beneficiary ID or Demat Account number
- Power of Attorney (POA) number
These are especially helpful if you want to apply for an initial public offer (IPO).
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