How to open Free Demat Account in India?
How to open Free Demat Account in India?
Demat account is where you can hold all your securities in India. With stock markets going up year on year, many investors are opening a demat account and investing in stocks, mutual funds, bonds, etc. and growing their money. If you are not yet opening a demat account or if you are new to investments, you can open free demat account online in India and start investing. What is Demat Account? What documents are required to open demat and trading account online? How to open Free Demat Account in India? This article would detail about the demat account opening procedure.
Also Read: Bajaj Finance Fixed Deposit offers high interest rates – Should you invest?
What is Demat Account?
Demat account is where you can hold your securities in electronic form. All credits or debits of securities can happen in this electronic account.
Before we jump further, you should know about Trading account too.
What is Demat and Trading Account?
While in demat account, you just hold your securities, in trading account, you can buy or sell securities in electronic form. If you have demat and trading account, you can hold your securities as well as buy and sell securities. Generally everyone would open Demat and Trading account so that they can buy and sell shares, mutual funds etc. and hold them too.
What are the Features of Demat and Trading Account?
Here are some of the key features:
1) You can hold securities in dematerialized form.
2) You can buy and sell securities in this demat and trading account.
3) You can transact shares, mutual funds, bonds, ETFs, Non Convertible debentures etc., through this account.
4) This is safe and online transaction of investments
5) Majority of the stock brokers are offering free demat account where there is no account opening charges. Some of them are offering waiver of 1st year AMC charges too. You need to pay AMC charges from 2nd year onwards.
6) Stock brokers are charging transaction fees / charges based on the account type and volume. Some of them are offering flat fees per transaction and some charge based on %age on volume.
7) Currently there are 2 depositories in India who are offering demat account i.e. NSDL and CDSL. You can open a demat account in these depositories through depository participants (like Zerodha, ICICI Direct, HDFC Securities etc.)
What documents are required to open Free Demat Account online?
Here are the documents required to open free demat account.
1) You need to have any of the following as Proof of Identify (POI) documents:
i) PAN Card
ii) Passport
iii) Voter ID
iv) Driving License
2) You need to have any of the following for proof of address (POA)
i) Passport
ii) Voter ID
iii) Registered Lease or Sale Agreement if you are staying on rent
iv) Driving license
v) Utility bills like water bill, power bill etc.,
vi) Bank Statement containing the address
Who is offering Free Demat accounts in India now?
Currently the following are offering free demat and trading account. However, they are not charging any account opening fees, but they might charge AMC charges from 1st year or 2nd year onwards. You should check all charges applicable for demat account before you proceed further:
1) Angel Broking Demat Account
2) Karvy Demat account
3) 5 Paisa demat account
4) Reliance Smart Money demat account
5) Sharekhan demat account
6) Kotak Securities demat account
7) Zerodha Demat account
8) Upstox Demat account (RKSV Securities)
9) Religare demat account
10) Motilal Oswal Demat account
11) ICICI Direct 3-in-1 Demat and trading account
How to open Free Demat and Trading Account in India?
Once you took a decision about which demat account is good for you based on charges and transaction fees, there are various ways where you can open free demat account in India
#1 – How to open Free Demat Account Online in India?
This method would tell you the way you can open online free demat account. However, this is common method and some screens / steps would differ from a broker to another broker.
a) Visit depository participant (DP) website where they are offering demat and trading account.
b) Visit demat account opening form and fill the basic details like name and mobile number
c) You would get OTP on your registered mobile number.
d) Once you enter OTP, you need to fill details like date of birth, PAN card details, email address etc.,
e) Upload Proof of identity documents and Proof of Address documents online
f) You would get a confirmation message that account opening is done and demat account details are sent to your registered email address.
g) You can start trading i.e. buying and selling shares, mutual funds, bonds, ETFs etc.,
h) There would be in-house inspection (some brokers are doing it still) in some cases.
#2 – How to open Free Demat Account Online in India through mobile App?
This method would tell you the way you can open online free demat account through mobile app. However, this is common method and some screens / steps would differ for each depository participant (DP).
a) Visit depository participant (DP) website and download the Mobile App (Android or IOS App).
b) Visit demat account opening form link and fill the basic details like name and mobile number
c) You would get OTP on your registered mobile number.
d) Once you enter OTP, you need to further fill details like date of birth, PAN card details, email address
e) Upload Proof of identity documents and Proof of Address documents online
f) You would get a confirmation message that account opening is done and demat account details are sent to your registered email address.
g) You can start trading i.e. buying and selling shares, mutual funds, bonds, ETFs etc.,
h) There would be in-house inspection (some brokers are doing it still) in some cases.
#3 – How to open Free Demat Account in India by Offline methods?
This method would tell you the way you can open free demat account through offline method. However, this is common method and some screens / steps would differ for each depository participant (DP).
a) Visit depository participant (DP) center nearest to you.
b) You can take a physical copy of demat account opening form that contains details like name, mobile number, date of birth, PAN card details, email address etc.,
e) Provide a Xerox copy of Proof of identity documents and Proof of Address documents. If you have soft copies you can provide the screen shots to them too.
f) Your documents are verified and uploaded into the DP website and you would get a confirmation message that account opening is done and demat account details are provided to you then and there.
g) You can start trading i.e. buying and selling shares, mutual funds, bonds, ETFs etc.,
h) There would be in-house inspection (some brokers are doing it still) in some cases.
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What are some sample links to open demat and trading account in India?
This is not a comprehensive list nor a recommendation about these brokers. If you have filtered any of these stock brokers to open demat account, you can check this link and proceed further.
If you are thinking How to open free demat account in zerodha, you can check this link.
If you want to open demat account with Angle Broking, you can check this link.
If you want to open demat account with 5Paisa, you can check this link.
If you want to open demat account with Sharekhan, you can check this link.
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Suresh KP
How to open Free Demat Account Online in India
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Thanks for sharing the post. The way you have narrated is good and understandable. After reading this post I have learned some new things on how to open Demat account. Please let me know for the upcoming posts.
Nice read
Can one apply ipo( under retail category )thru more than one demat account or retail investors can apply ipo one application/PAN no.
Ahswani, One can invest in IPO from more than one Demat account. However since PAN is linked to Demat account, even if you get allotment, you would get only in one demat account. Another way is open demat account in your spouse name and apply from their too, then there would be more chance of getting allotment
Hi
Please clarify
1,Can a person hold more than one demat & trading account?
2. If not what is the procedure to combine more than one demat account.
Thanks
Anil
Hello Anil, Here are my comments 1) Yes person can hold more than 1 demat account 2) Since you can hold more than 1 account, you need not worry about combining them. However if you still wish to combine, approach your demat account broker and ask them to provide application where you can transfer all other demat account holdings to that demat account.
Its Really Helpful for many of us, Thanks