Numerous people wanting to start trading on the Indian stock exchanges do not have any idea on how to start. For investing in stock markets, the first step is to open a demat account. Demat account, as a term, refers to dematerialized account that is required for trading in securities or bond in the country's stock markets. Dematerialization or dmat refers to the electronic storage of securities and shares in an account and you don’t have to bother about loss or theft of paper share certificates. It is easy for you to open a demat account in India. Just follow the steps on how to open a demat account given here.
Dmat account services are provided by stock broking house, several banks and financial institutions. The stock broking companies also act as depository participants (DPs) that is, as intermediaries between the investor and the depositories such as CDSL or NSDL.
Selecting the Right Demat Account Provider |
Demat account services are offered by several banks, stock broking companies and financial institutions that provide DP services as well. Some of the known banks and stock broking companies offering demat account opening in India are – HDFC, Reliance Money, ICICI, Unicon Investment Solutions, Sharekhan etc. The factors that guide your demat account provider selection should be the charges, product & service quality and transparency in dealings.
Demat account charges differ across stock brokers. Though the rates may differ, the charges are under the following heads: |
- Demat account opening charges or AOC
- Demat annual maintenance fee or AMC
- Transaction/ Brokerage fee
- Stock Trading software charges
- Charges for Call & Trade facility (if provided by your stock broking company)
- Charges for sending stock tips on SMS
- Service Tax is charged over and above this as applicable
Some demat account service providers may waive off certain fees depending on the brokerage plan you opt for.
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Documents Required for Demat Account Opening in India |
- PAN card copy as ID proof
- Passport or Ration card or Voter ID as address proof
- Two passport sized photos
- Personalised savings account with a bank and crossed cheque from the same bank
Once you provide the above documents and fill out the demat account opening form, the stock broking company will assist in completing all other formalities with the DP and help open your demat account. This could take from a week to about 10 days after you fill out your demat account opening application.
Once you have opened your demat account, the shares bought and sold by you will reflect in your dmat account. Any physical share certificates held by you can now be dematerialized and transferred to your new demat account for hassle free stock investments.
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| Fill the form below to open Demat Account |
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Open Demat Account Today, gain an edge in Trading Online with opening demat account 