How To Open Demat Account?
24 Aug 2023
Table of Content
A Demat account (Dematerialised account) is necessary to be able to trade or invest in stocks online. Demat accounts hold the securities and other assets traded on stock markets.
Depository organisations maintain these accounts. You can fund your Demat account to be able to purchase stocks. When you sell your stocks, you receive the payment in your Demat account . It can be set up to transfer the funds to your bank accounts.
Now, you may be wondering where to open a Demat account. Well, you've come to the right place! This guide will help you through the process. Opening a DMAT account is easy and can be completed quickly.
So, if you want to know how to create a Demat account, read on:
How to Open a Demat Account?
Here's a step-by-step guide on how to open a Demat account:
- Research and choose a Depository Participant (DP).
- Gather the documents required to open a Demat account.
- Before initiating the account opening process, make sure you have the necessary documents readily available.
- Fill out the account opening form.
- Submit the documents.
- Make sure to provide self-attested copies, along with the original documents, for verification.
- Complete the in-person verification (IPV).
- Sign the agreement: Read through the terms and conditions of the Demat account agreement provided by the DP. If you agree to the terms, sign the agreement to open the account.
- Pay the account opening charges: Account opening charges might apply, which vary among DPs. Ensure you understand the fee structure and make the necessary payment.
- Link your bank account with your Demat account.
How to Open a Demat Account Online?
To open your DMAT account online, follow these easy steps:
- Choose a reliable brokerage firm or bank
- Visit its official website
- Fill in your details
- Upload the required documents
- Complete the verification process
- Fund your account
And voila! You've successfully opened your DMAT account online. Now you can begin exploring the exciting world of stock trading and investments at your convenience.
Also Read - Features & Benefits of Demat Account Opening
Documents Required for Opening a Demat Account
When opening a Demat account, you will typically need the following documents:
- PAN Card (Permanent Account Number)
- Proof of Identity (PoI): Acceptable PoI documents include an Aadhaar card, passport, voter ID card, driving license, or any other government-issued photo ID.
- Proof of Address (PoA): Acceptable PoA documents include an Aadhaar card, passport, voter ID card, driving license, bank statement, utility bills (electricity, telephone, gas, etc.), or any other government-issued document containing your residential address.
- Passport-sized Photographs:
- Bank Account Details: You need to provide your bank account details to link your bank account with the Demat account for seamless fund transfers.
Things to Remember while Opening a Demat Account
When opening a Demat account, there are a few essential things to remember:
- Choose a reputable broker: Select a reliable and well-established broker or depository participant (DP) to open your Demat account. Research their track record, reputation, customer reviews, and the range of services they offer. Opting for a trusted broker ensures the safety of your investments and a seamless trading experience.
- Understand the charges: Familiarize yourself with the charges associated with opening and maintaining a Demat account. These can include account opening charges, annual maintenance charges (AMC), transaction charges, and other miscellaneous fees. Be clear about the fee structure and any hidden costs before proceeding.
- Read the terms and conditions: Carefully read and understand the terms and conditions provided by the broker or DP. Pay attention to important details such as account closure policies, rights and responsibilities of the account holder, dispute resolution mechanisms, and any limitations or restrictions on trading activities.
- Keep necessary documents ready: Gather all the required documents, such as your PAN card, proof of identity, proof of address, and passport-sized photographs, before initiating the account opening process. Ensure that the documents are valid, current, and meet the specific requirements of the broker or DP you choose.
- Understand the account features and services: Take the time to understand the parts, tools, and services offered by the broker's online platform. Familiarize yourself with the trading interface, research tools, portfolio tracking, and customer support channels. This will help you maximize your Demat account and optimize your trading and investment activities.
- Keep your login credentials secure: Safeguard your Demat account login credentials, including username, password, and any additional security measures the broker provides.
Open a Demat Account with the Bank of Baroda
Here's how you can open a Demat account with the Bank of Baroda:
- Visit the Bank of Baroda website
- Navigate to the "Demat Services" section
- Fill out the online application form
- Provide the required details, such as your personal information, contact details, PAN card number, bank account details, and any other information requested by the bank.
- Submit the application form
- Fund your Demat account
- Access your Demat account
FAQs on Opening a Demat Account
Q: How long does opening a Demat account with the Bank of Baroda take?
A: The time to open a Demat account with the Bank of Baroda can vary. Typically, the account opening process can be completed within a few days to weeks, depending on the verification process and document submission.
Q: Can NRIs open a Demat account?
A: NRIs (Non-Resident Indians) can open a Demat account in India. Many banks and financial institutions, including the Bank of Baroda, offer Demat account services for NRIs. However, the account opening process and requirements may differ for NRIs, and they must comply with the regulations set by the Reserve Bank of India (RBI).
Q: How to find the Demat account number from PAN?
A: To find your Demat account number from your PAN (Permanent Account Number), contact your Depository Participant (DP) or the institution where you hold your Demat account. They will provide the necessary information, including your Demat account number.
Q: Can I have multiple Demat accounts?
A: Yes, it is possible to have multiple Demat accounts. However, it is essential to consider the associated costs and maintenance requirements before opening multiple accounts.
Q: Do I need a Demat account for SIP (Systematic Investment Plan)?
A: A Demat account is not mandatory for SIP investments in mutual funds. You can invest in mutual funds through direct or regular plans without a Demat account. However, a Demat account is required to hold mutual fund units electronically.
Q: Is a Demat account free?
A: Demat accounts typically involve certain charges. These may include account opening charges, annual maintenance charges (AMC), transaction charges, and other applicable fees.
Q: Who can open a Demat account?
A: Individuals who are citizens of India, NRIs, foreign investors, and corporate entities are generally eligible to open a Demat account. However, the specific eligibility criteria and requirements may vary depending on the broker, DP, or financial institution where the account is being opened.
Q: How to add a nominee to a Demat account online?
A: To add a nominee to your Demat account online, you can follow these general steps:
- Log in to your Demat account through the online platform your broker or DP provides.
- Look for the option or section related to "Nomination" or "Nominee Details."
- Fill in the required details of the nominee, such as name, relationship, address, and percentage of share (if applicable).
- Upload any supporting documents, if required.
- Review the information entered and submit the nomination request.
- Follow any additional verification or authentication steps as your broker or DP instructed.
The contents of this article/infographic/picture/video are meant solely for information purposes and do not necessarily reflect the views of Bank of Baroda. The contents are generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. Bank of Baroda and/ or its Affiliates and its subsidiaries make no representation as to the accuracy; completeness or reliability of any information contained herein or otherwise provided and hereby disclaim any liability with regard to the same. The information is subject to updation, completion, revision, verification and amendment and the same may change materially. The information is not intended for distribution or use by any person in any jurisdiction where such distribution or use would be contrary to law or regulation or would subject Bank of Baroda or its affiliates to any licensing or registration requirements. Bank of Baroda shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information mentioned. Please consult your financial advisor before making any financial decision.
What are the Benefits of Demat Account?
In 1997, the Indian stock exchanges transitioned to using Demat accounts. Before this, stock and share transactions had to be recorded on paper and completed in person using actual stock certificates.
How to Transfer Shares from One Demat Account to Another?
If you are an active investor, you might have wondered ‘Can I transfer shares from one demat account to another? The answer is yes! When you sell securities, you give your shares to another person. However, if you hold multiple demat accounts, then you can transfer your shares from one demat account to another demat account.