Can I Open Demat Account Online?

You’ve always been thinking of investing in shares and opening a Demat Account. However, you’re finding it hard to take time off your busy schedule to open one. There’s absolutely no way you can visit a bank or stockbroker during a busy weekday during working hours. If that’s the case, the best solution would be to open a Demat Account online. (Yes, it’s possible!)

The eligibility criteria for opening a Demat account

You can open a Demat Account only through registered brokers or brokerage firms. ICICIdirect is a registered broker through which you can open your Demat Account online. Here’s the eligibility criteria for opening a Demat Account:

Anyone can open Demat Accounts. Minors need a guardian to open and manage the account.

You will need a PAN Card. In case of minors, the guardian’s PAN Card will have to be submitted.

Having a Trading Account is mandatory for opening a Demat Account.

Bank account proof in the form of a cancelled cheque, a bank passbook or the latest 6-month bank statement is compulsory.

You need to submit address proof such as your PAN Card, Aadhar Card, Driving License, Passport, Voter ID Card, latest utility bills or bank statements.

 In case you want to trade in Futures and Options, you need an income proof which could be the latest 6-month bank statement, 3-month salary slip or your ITR statement.

You will also have to submit a passport-sized photo and your signature (matching the one on your PAN Card) on a blank white paper.

Additional Read: Top Features & Benefits of Demat Account

Opening a Demat Account – the role of the DPs

Before we go further, it’s important to understand who can open a Demat account for you. Demat Account services are provided by Depository Participants (DPs), who serve as representatives of the two central depositories in India – the NSDL and the CDSL. DPs can include banks and stockbroking firms. Essentially, the DP serves as the link or the intermediary between customers and the two central depositories. As a customer interested in investing in the stock market, you have to rely on the services of these DPs to open your Demat Account.

Opening a Demat Account online

Most DPs now enable customers to open Demat Accounts online. As such, you can now open your account at a time of your convenience from the comfort of your home or office. The process can be completed in just a few minutes. Just visit your preferred DP’s website and fill the account opening form online. You can either use the Digilocker facility offered by the Government of India to fetch your documents or use your Aadhar number to complete the e-KYC process. You should keep your signature image handy to complete the process. Your bank account details can be verified by the penny drop facility by depositing Rs. 1 in your bank account. Otherwise, you can upload a copy of your cancelled cheque, bank statement or a copy of your bank passbook to verify your bank account details.

Another option is to simply fill the physical form and submit the documents at the offices of the DP. You will need copies of documents to prove your identity and address, like PAN card, Aadhaar card and telephone bill as per the DP’s official valid documents or OVD (Officially Valid Documents) list. The DP will also assist you in completing the one-time, mandatory KYC formality and verify your details, either in-person or through a video call. Once your details are verified, the DP will open your Demat Account and allot a Demat number and client ID. The details of the same will be sent to your registered mail address.

Additional Read: Opening a demat account? Here are all the documents required for the same

What offers you can get

The best part of opening a Demat Account online is that most DPs today waive account opening charges, so you don’t have to pay anything at all. Some DPs waive annual maintenance charges for the first year as an incentive. So, before choosing your DP, make sure you know who offers the best deal.

Of course, it’s not enough to ensure that you get the cheapest and best deal. There are other things you should look for in a DP as well. It’s always a good idea to have a three-in-one account offered by banks and brokers since it provides a seamless connection between trading, money transfers and the Demat Account. You should also choose a reputed firm that makes good investments in technology and trading platforms so that your transactions are completed quickly and efficiently. If you are a new investor, you should also consider stock brokers providing advisory services so that you can invest as per your goals and your risk appetite.

Conclusion

A Demat Account is a must for any serious investor. The online Demat Account opening facility makes things so much easier. So, what are you waiting for?

Disclaimer: The contents herein mentioned are solely for informational purposes and shall not be considered as an invitation or persuasion to trade or invest. I-Sec and affiliates accept no liabilities for any loss or damage of any kind arising out of any actions taken in reliance thereon.