How to Open Demat Account Online?

Today, managing stock market investments has become more convenient than ever. The time of dealing with hefty physical certificates is gone, replaced by the efficiency and security of demat accounts. A demat account, short for dematerialised account, allows investors to hold securities in electronic form, eliminating the need for physical certificates. For those new to the stock market, understanding the benefits of a demat account & process to open it, is the first step towards a seamless investment experience. This blog provides an overview on how to open a demat account using different methods. Additionally, we will also discuss the essential tips of how to keep this account safe.

How to Open a Demat Account Online?

The demat account opening process can take place online as well as offline in India. You can start the application while sitting on the couch at your home. Here’s how to open a demat account online in India:

• Step 1: Choose a stockbroker offering demat account services and visit its official website.
• Step 2: Start your application by providing simple details like your name, mobile number, etc.
• Step 3: You will be asked to confirm your mobile number and email address through OTP (One Time Password).
• Step 4: You must complete the application by providing your KYC (Know Your Customer) details online.
• Step 5: You must now upload KYC documents and the application for verification. You must upload the PAN card, Aadhaar card, canceled cheque, and other documents the stockbroker requires.
• Step 6: Upload your photograph and e-signature. The stockbroker might also call for an in-person verification. Some stockbrokers might complete the verification step over a video call/conference.
• Step 7: Wait for some time after your in-person verification. You will receive your demat account credentials to start investing.

How to Open Demat Account Offline?

To open a demat account offline with Religare Broking is a straightforward process that ensures a seamless transition into the world of online trading. Here’s a step-by-step guide:

1. Visit your Nearest Religare Broking Branch: Locate the nearest Religare branch office in your area. You can find the address and contact details on their official website or by reaching out to customer support.
2. Meet a Representative: Once at the branch, meet a Religare representative who will guide you through the account opening process. You will be provided with the necessary forms.
3. Fill Out the Application Form: Complete the demat account opening application form accurately. You’ll need to provide your personal details such as name, address, PAN card number, contact information, and banking details.
4. Submit Required Documents: Along with the application form, you’ll need to submit copies of required documents such as proof of identity (Aadhaar card, Passport, etc.), proof of address (Aadhaar card, Passport, etc.), cancelled cheque for bank account details, and proof of income (ITR return, salary slip, etc.).
5. Verification Process: The brokerage firm will verify the documents and form provided by you. This may involve in-person verification of original documents or submission of self-attested copies.
6. Activation: Upon successful verification and processing of your application, your demat account will be activated, and you’ll receive your account details along with any login credentials required for accessing online trading platforms.

How to Open a Demat Account Without Aadhaar Card?

Demat account opening without an Aadhaar card is also a streamlined process that requires only a few essential documents. The primary document needed is a PAN card, which is mandatory for every demat account application.

To begin the process, ensure you possess a valid PAN card. While a physical Aadhaar card is not necessary, you can use the electronic version as proof of identification when opening your zero charges demat account. This electronic version can be easily obtained through the UIDAI website for Aadhaar app.

Once you have your PAN card and electronic Aadhaar, if available, you can approach a Depository Participant (DP) or a brokerage firm to initiate the demat account opening process. The DP or brokerage firm will provide you with the necessary application forms and guide you through the documentation process.

How to Open a Demat Account With Religare Broking?

Here is the procedure to open demat account with Religare Broking:

• Visit the official website of Religare Broking and click on the ‘Open an Account’ button.
• Provide your full name, email ID, city name, mobile number, and OTP to proceed
• Provide KYC details and upload the required documents
• You will receive demat account credentials upon successful KYC verification

Is a PAN card mandatory ?

Opening a demat account without a PAN (Permanent Account Number) card is generally not possible for most individuals in India. The PAN serves as a vital identification document for financial transactions, including those in the securities market. It consolidates all financial activities in one place and is mandated by the Income Tax department. While a person is allowed to hold only one PAN card, there are some exceptions to the requirement for opening a demat account.

Individuals exempted from obtaining a PAN card, such as certain tribes in the North Eastern regions and specific entities under section 12 of the SEBI Act, may open demat accounts without a PAN card. However, these accounts often have limitations, such as a cap on the investment amount or a temporary duration of activation.

In most cases, however, having a PAN card is a prerequisite for opening a demat account for both Indian citizens and NRIs. It serves as a crucial document for individuals entering the domain of trading in securities and other financial instruments, ensuring transparency and accountability in financial transactions. Therefore, while there are exceptions to the rule, possessing a PAN card remains integral for most individuals seeking to open a demat account in India.

List of Accepted KYC Documents

KYC documents are mandatory for online demat account opening. You must upload these documents along with your account opening application to open a new account. It is compulsory for stockbrokers to collect KYC details before opening a new account. The documents needed are a passport, driver’s license, voter’s ID, bank verification letter with photographs, etc. It is crucial to note that a PAN (Permanent Account Number) card is mandatory to complete the process. Besides the PAN card, you might be asked to provide any other identity proof/document.

Documents required to open demat accounts will include address proofs as well. You might have to provide an Aadhar card, driver’s license, NREGA job card, or any other document to prove your address. In some cases, these documents might not include the updated or current address of the applicant. In such a case, you can offer a utility bill, municipal tax receipt, letter of accommodation, or any other document to prove your current address.

Besides the aforementioned documents, stockbrokers require a canceled cheque to verify your bank account.

Religare Broking Demat Account Opening Charges

Online demat account opening charges can vary from one stockbroker to another. Depository participants and stockbrokers in India can charge anywhere between Rs. 300 and 800 to open a new account. However, you can skip these charges if you open your account with Religare Broking. You can now open a demat-cum-trading account for free with Religare Broking.

Key Factors to Consider When Opening a Demat Account

Now that you understand how to open a demat account, here are some factors to consider before applying for one:

• Safety: It adds an extra layer of safety for securities. You must choose a reliable stockbroker who can implement the safety measures.
• Cost Efficiency: It removes the stamp duty charges associated with paper certificates. You must choose a broker that offers services with minimal account opening and maintenance charges. Also, consider the brokerage charges for transactions via the trading account.
• Ease of Use: Your services provider will offer a digital platform to access your holdings. You can apply for a 2-in-1 brokerage account, which can be accessed easily via a trading platform.
• Account Opening Process: Choose a stockbroker that allows applying for a dematerialised account online.

Why Do You Need to Open a Demat Account?

Before understanding how to open a demat account, let us discuss its importance. Here are some reasons:

• Safe Storage: A demat account can help store electronic securities safely. You don’t have to indulge in paper certificates for each transaction.
• Smooth Transactions: It ensures smooth transactions of securities. Upon purchasing new securities, they are automatically transferred to your dematerialised account. Similarly, securities are withdrawn from the same when you decide to sell them.
• Simplified Ownership Transfer: You can transfer your ownership and securities to another individual easily. It also helps with the transfer of securities in case of the demise of the original account holder.
• Easy Portfolio Monitoring: It helps you view all your securities at once. You can monitor your holdings anytime with a dematerialisation account in India.

Conclusion

Opening a demat account online in India has become a straightforward process, thanks to technological advancements and streamlined procedures by stockbrokers. By following the steps outlined and providing the necessary KYC documents, investors can quickly access the benefits of holding electronic securities.

Recommended Read: Choose best Demat Account