Demat accounts are essential for traders in today’s era. Investors cannot carry physical documents of trades with them everywhere. For the same rationale, they depend on Demat accounts to hold securities in electronic format.
A Demat account will digitise physical securities purchased via a trading account. When securities are digitised, there are fewer risks of theft and damage. One can easily create a Demat account online with a trusted stockbroker and start trading.
Your stocks, bonds, ETFs, mutual funds, and other holdings remain safe in a Demat account. Investors do not have to go through a pile of documents to view their holdings. A Demat account can help view holdings instantly and indulge in portfolio management. Let us discuss the steps to apply for a Demat account online in India.
Steps to Create a Demat Account Online
You can visit a stockbroker or depository participant to open a new Demat account. However, you can save time by applying for a new Demat account online. Before understanding the steps to apply online for a new account, knowing the Demat account providers is advisable.
Depository participants are registered agents allowed to open new Demat accounts. On the other hand, stockbrokers are also permitted to open new Demat accounts. However, stockbrokers also help investors with new trading accounts and investment platforms. For the same rationale, choosing a reliable broker in India can be the right choice.
Here are the steps to create a Demat account online:
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The first step is to search for a reputed stockbroker or depository participant. Once you have discovered the Demat account provider, visit its website to apply for a new Demat account.
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You can start by providing basic details like name, email ID, city name, and mobile number. You might be asked to confirm the OTP received on your entered mobile number to move forward with the Demat account application.
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You must provide more details to complete the Demat account application. Some brokers or depository participants will ask for a fee to apply for a new Demat account online. You can select reliable firms like Religare Broking Limited to open a Demat account without charges.
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The next step is to complete the KYC process with the broker or depository participant. KYC (Know Your Customer) is mandatory for Demat account providers. They will request a few documents to confirm the details mentioned in the Demat account application. With the increasing adoption of eKYC processes by Demat account providers, it is possible to submit KYC documents online.
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After the KYC process, some Demat account providers might ask for in-person verification. Some brokers might even offer the facility of in-person verification over a video conferencing channel.
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After you complete the verification process, the Demat account provider will offer the login credentials. You can start holding securities in your Demat account.
Before choosing a Demat account, do not forget to analyse the charges. You must consider maintenance, custodian, dematerialisation, transaction, and other charges. In addition to a Demat account, you can apply for a zero brokerage trading account to save money.
In a Nutshell
Opening a Demat account is no big deal in today’s digital era because of the digital revolution. You can submit your Demat account application online. You can also upload the required documents for a new Demat account online. So open a dematerialisation account today to make investments seamlessly!