As you In the last few years, the world of investing in India has completely transformed or Changed. What once required paperwork, a visit to your broker’s office, and a whole lot of patience, can now be done with just a your handy smartphone and an internet connection. One of the first steps for anyone looking to invest in the stock market is opening a Demat account — and the good news is, it’s easier than ever to do it online.
If you are a beginner wondering what a Demat account is, why you need one, and how to get started, this guide is for you.
What is a Demat Account?
A Demat account is an account that allows you to hold all type financial securities like stocks, mutual funds, bonds, and ETFs in electronic form. Think of it as a digital locker where your shares are safely stored.
Just like you need a bank account to save or spend money, you must need a Demat account to buy, hold, and sell shares in the Indian stock market.
Why Do You Need a Demat Account?
Following is the few reasons why a Demat account is important for everyone:
Mandatory for Stock Trading: You cannot trade in the stock market without a Demat account like BSE AND NSE.
Safe & Secure: It eliminates the risk of theft, loss, or damage to physical share certificates.
Convenient: You can easily track your all type investments, dividends, and transactions online at your phone
Quicker Settlements: Transactions are faster and more efficient.
Who Can Open a Demat Account in India?
Anyone who is:
18 years or older (but minors also can open with a guardian)
A resident Indian or NRI
If you Have valid KYC documents (PAN card, Aadhaar card, etc.)
Documents Required to Open a Demat Account.:
1. ✅ PAN Card (Mandatory)
2. ✅ Aadhaar Card
3. ✅ Bank Account Proof
4. ✅ Passport-size Photograph
5. ✅ Signature on White Paper
Some brokers may also ask for income proof if you want to trade in derivatives like Futures & Options.
Step-by-Step Guide: How to Open a Demat Account Online in India
Let’s walk through the entire process in this post. It usually takes 10–15 minutes.
Step 1: first Choose a Depository Participant (DP)
A DP is an agent of the depository like NSDL or CDSL that offers Demat account services. These are usually:
Discount brokers e.g., Zerodha, Upstox, and Groww.
Full-service brokers e.g., ICICI Direct, HDFC Securities and Kotak Securities etc
👉 Tip: If you're a beginner, discount brokers are more cost-effective and user-friendly.
Step 2: Visit the Broker’s Website or App
Go to the official website or download the app of the broker you’ve chosen. Look for the “Open Demat Account” option and click on it.
Step 3: Enter Basic Details
You’ll be asked to fill in some basic information:
Full Name (as per your PAN)
Mobile Number (linked to Aadhaar)
Email ID
PAN Card number
Date of Birth
Verify your mobile and email via OTP.
Step 4: Complete KYC
Upload scanned copies or clear photos of the following:
PAN Card
Aadhaar Card
Bank proof
Your passport-size photo
Your signature on white paper
Most platforms now offer e-KYC via Digilocker to make this step faster.
Step 5: In-Person Verification (IPV)
This is a quick video-based verification step.
You’ll either record a short video or join a live video call via your webcam or phone.
You may be asked to show your PAN card and speak your name or a verification code.
Step 6: Choose Your Trading Preferences
If you’re only planning to invest in stocks, you can choose the Equity segment. If you also want to trade in derivatives, commodities, or currencies, select the relevant options. Income proof may be required for F&O.
Step 7: E-sign Using Aadhaar OTP
The final step is signing the application digitally. You’ll receive an OTP on your Aadhaar-linked mobile number. Enter the OTP and submit.
And You’re finally Done!
After submitting your application, you’ll receive an email/SMS confirmation. Most accounts are activated within a few hours to 1 working day. Once it’s active, you’ll receive your Demat account number and login credentials.
Things to Keep in Mind
Charges: Some brokers offer free account opening and zero annual maintenance for the first year, but check for hidden charges.
Link to Bank Account: Ensure your bank account is linked for smooth fund transfers.
Keep Login Credentials Safe: Don’t share your ID/password with anyone.
Multiple Accounts: You can open more than one Demat account, but managing too many can be confusing.
FAQs
Q1. Can I open a Demat account without a PAN card?
No, a PAN card is mandatory to open a Demat account in India.
Q2. Is it safe to open a Demat account online?
Yes, if you’re using a SEBI-registered and reputed broker’s official platform.
Q3. Is there any minimum balance required?
No, there is no requirement for a minimum balance in a Demat account.
Q4. Can I open a Demat account as a student?
Yes, if you're above 18 and have a PAN and Aadhaar card, you can open a Demat account.
Final Thoughts
Opening a Demat account online in India is now simple and hassle-free. With just a few clicks and documents, you can be ready to invest in the exciting world of equities and build your financial future.
Whether you're dreaming of becoming the next market expert or just looking to earn passive income, the journey begins with this one step. So why wait? Pick a broker you trust and open your Demat account today!
