Most of the processes and services are digitised in today’s era. People can apply for a bank account online in 2023. Demat account providers are not far behind in this scenario. They also allow customers to open new Demat accounts online. Many brokers and DPs (Depository Participants) have digitised the Demat account opening process via their websites. Let us discuss the process of opening an online Demat account in quick succession.
Are You Familiar with the Function of Demat Accounts?
Before understanding the process for Demat account opening, you must know its uses. A Demat account is used to hold or store securities in digital form. Without Demat accounts, investors will have no choice but carry physical trade certificates. A Demat account completes the process of dematerialisation, which is the conversion of physical securities into electronic format. As soon as you purchase securities via your trading account, they are transferred to the Demat account. Here is a step-by-step process to open a Demat account online:
Step 1: Choose a Provider
The first step to create a Demat account is to search for a Depository Participant (DP) or stockbroker. DPs and stockbrokers are authorised to offer Demat accounts to investors. Any Demat account provider will be registered with CDSL/NSDL or both. It is profitable to choose a stockbroker for Demat account services. A reputed stockbroker can help you open both trading and dematerialisation accounts. You can apply for a 2-in-1 (trading cum Demat) account online.
Step 2: Provide Basic Details
Visit the official website of the selected Demat account provider. You must provide a few basic details to start your Demat account application. You might have to provide your full name, email ID, mobile number, and other details. The Demat account provider will send a confirmation OTP to your mobile number or email. Confirm the OTP to resume your Demat account application online. Also, enter accurate details in your Demat account application to avoid hassles.
Step 3: Upload the KYC Documents
Know Your Customer (KYC) is compulsory for all Demat account providers. A DP or broker cannot offer you a Demat account without having some details. The broker will ask you to upload a few documents to verify the KYC details. KYC documents are uploaded on the broker’s website along with the Demat account application. KYC documents can include a cancelled cheque, PAN card, Aadhaar card, etc. After submitting the KYC documents, the applicant has to wait for the broker’s response. The above three steps can be done within minutes on an official website.
Step 4: Wait for Verification
Applicants must wait for Demat account approval. The broker or DP will take some time to verify the KYC documents. The broker or DP will confirm your Demat account application if everything is accurate. In some cases, Demat account providers reject the application due to insufficient or incorrect details. You might even check the Demat account application status online on the broker’s website.
Step 6: Start Trading
You’re ready to embark on your investment journey upon receiving your Demat account credentials. Log in to your trading cum Demat account to seamlessly purchase securities and conveniently monitor your holdings via the Demat account interface. This streamlined process empowers you to initiate investments and stay updated on your portfolio’s status at your convenience.
In a Nutshell
It is very convenient to open a Demat account online and start trading. You only have to provide a few details and upload the KYC documents on a broker’s website. New investors must choose a trading cum Demat account for seamless trading. Choose your broker or DP and apply for a Demat account online!