In today's digital age, owning a Demat account has become an essential part of investing in the stock market. Demat, short for Dematerialization, refers to the process of converting physical shares and securities into electronic form. A Demat account is an electronic account that holds these securities in a digital format. It provides a safe and secure way to hold and trade securities without the need for physical certificates.
Demat accounts have been introduced in India since 1993 to make the share market more efficient and transparent. It’s the simplest and safest way to hold your securities. You can access your Demat account from anywhere in the world. There are two types of accounts available under this system—open-ended and close-ended.
Best Demat Account in India
Demat accounts are opened with stock brokers and banks. They act as custodians of the investors' holdings and facilitate the buying, selling and transfer of shares on their behalf.
The charges for opening a Demat account depend on the type of institution (brokerage firm) where you open it. You can open a Demat account with any of the listed entities like SBI, HDFC Bank, Axis Bank, ICICI Bank, etc.
1. Zerodha Demat Account
Open your Zerodha Demat Account swiftly by following these steps:
Step 1: Go to www.zerodha.com and click on “Open Demat Account”.
Step 2: The next page will ask you to select a product; select “Demat (Regular)” and click on “Continue”.
Step 3: You will be required to fill in your personal details (name, address, mobile number etc.) and the type of account you want to open (Individual or Joint). Enter all the details accurately and choose your own password for your account. Once done, click on Continue.
Step 4: Now you have to upload scanned copies of valid documents for KYC verification like PAN card, Aadhaar card/EID card, driver's license etc., which must be less than 6 months old (some banks allow up to 24 months). For this purpose, you can use the scanner available on the Zerodha website or use any other scanner available at your place.
(Note: It is important that all documents should have a clear photograph of yours so that there are no confusions during the KYC verification process later on by the broker or exchange house. You can also upload a photo of yourself while uploading these documents if you do not have a good-quality photograph attached.
2. HDFC Demat Account
Step 1: Visit the official website of HDFC Bank and navigate to the 'Investments' section. Click on the 'Demat Account' option.
Step 2: HDFC Bank offers two types of Demat accounts - Regular and Basic Service Demat Accounts (BSDA). Choose the type of account that best suits your needs.
Step 3: Fill in the online application form with your personal details, such as name, address, contact details, PAN number, etc.
Step 4: You will need to submit the following documents to complete the Demat account opening process:
- Proof of identity (PAN card, Aadhaar card, Passport, Voter ID, etc.)
- Proof of address (Aadhaar card, Passport, Driving License, Voter ID, etc.)
- Passport size photograph
Step 5: HDFC Bank charges an account opening fee for both Regular and BSDA Demat accounts. The fees vary based on the type of account you choose. Regular Demat account opening charges are ₹750, and for BSDA, it is free if you meet the eligibility criteria.
Step 6: Once your application and documents have been verified, your Demat account will be activated, and you will receive login details for accessing your account.
3. Groww Demat Account
To open your Demat account, you will have to submit the following documents:
Step 1: Submitting the required documents.
- Identity Proof- Passport/Driving License/Voter ID card/Aadhaar Card etc.
- Address Proof- Passport/Driving License/Voter ID card/Aadhaar Card etc.
Step 2: Verifying the account
- After submitting these documents at the time of opening an account, they will be verified by Groww within 48 hours. You can verify your details online anytime after opening an account by logging into 'My Groww'.
Step 3: Link your Demat Account with your bank account. Charges might apply based on the banking procedure you use. To fund your Groww Demat Account, you can use NEFT/RTGS transfers or send cheques/DDs.
4. Upstox Demat Account
Step 1: Go to the official website of Upstox. Head to the Upstox online Demat account opening page.
Step 2: Enter your basic details as asked in the form, and click Sign Up.
- Keep scanned copies (i.e. soft copies) of your documents (Aadhaar, PAN, Cancelled Cheque, and your latest bank statement) with you for when you are directed to upload them.
- Enter your Aadhaar details and the OTP you receive on your linked mobile number in order to verify your identity.
That should be it. Your Demat account should now be created.
5. Angel One Demat Account
Here is a step-by-step process for opening a Demat account with Angel One:
Step 1: Visit the Angel One website at website.
Step 2: Click on the "Open Free Demat Account" button.
Step 3: Enter your name, mobile number, and email address in the registration form.
Step 3: Verify your mobile number and email address by entering the OTPs sent to your phone and email.
Step 4: Fill out the personal details, including your PAN number, date of birth, and address.
Step 5: Submit all the required documents, such as a copy of your PAN card, an Aadhaar card, and a passport-sized photograph.
Step 6: Sign the online Demat account opening form using your digital signature.
Step 7: In the next step, you will be required to complete the in-person verification (IPV) process. This can be done either through a video call, where you will be required to show your original documents or by visiting an Angel One branch near you.
Step 8: Once your Demat account is activated, you will receive your login credentials, and you can start trading.
That's it! It's a simple and hassle-free process to open a Demat account with Angel One.
In conclusion, opening a demat account is an essential step for anyone looking to invest in the stock market. Not only does it provide a safe and secure way to hold securities, but it also allows for easy and convenient trading. With the advent of online account opening processes, it has never been easier to get started. So if you're looking to take advantage of the opportunities provided by the stock market, consider opening a demat account today.