If you are a trader or an investor, you must know that, without a Demat account, you cannot trade or invest in the market, right? So, opening a Demat account with a brokerage house is mandatory as per SEBI guidelines for trading and investments.
However, how to open a Demat account, the documents you need to submit, how to download the application form, and other such questions must be revolving in your head. Here in this article, you will find the details about the Demat account opening form, the account opening process, and a lot more.
How to Open a Demat Account?
To open a Demat account, you need to fill out the Demat account opening form, and here are the details that generally need to be filled in:
- Date of birth
- Residential status
- Permanent address
- Current address (if different from permanent address)
- PAN detail
- AADHAAR details
- Bank account Details
- Income details
- If you want to nominate anyone, you can fill in the details for the same as well once you fill out the form, then you have to submit the same, along with the documents:
- Bank Statement
- Income Proof
- Address Proof and others as required
Upon successful verification of all the details and the documents, your application will be either approved or rejected, in case the details cannot be verified or found false.
If your application is approved, your account will be opened, and you will receive a welcome mail from the brokerage house with the details of your login credentials.
Can I open a Demat Account Online?
Yes, with the advent of technology and a completely digitised system, now opening a Demat account online is possible. Most brokerage houses offer online account opening, which takes hardly a few minutes.
Once you fill out the account opening form and submit it, the team of the brokerage house will call you and guide you about what documents are required. After you upload all the documents, they will verify and evaluate the application.
Is an Email ID Necessary for Opening a Demat Account Online?
Yes, if you are opening a Demat account online, registering your email address is a necessity. The email ID will be required to send OTP – one-time password and login credentials, and all information and updates will be intimated via email only.
Is AADHAAR Necessary for Opening a Demat Account?
AADHAAR is regarded as the primary identification Id in India at present. Thus, it is required for verification of the applicant, and KYC will be incomplete without your AADHAAR. Moreover, the contact number given in the AADHAAR card will be used to send OTP for verification as well.
Why Can’t I Open a Demat Account Without a PAN Card?
A Demat account is for investing and trading shares. It holds all your security in one place in digital format, making it secure and safe. PAN is required by the IT department to keep track of all your financial transactions, and as securities are assets, they need to be shown on the IT form as assets, on which taxes can be levied. Thus, PAN is necessary for traders and investors and thus for opening a Demat account.
Where Can I Get the Demat Account Opening Form?
You can get the Demat account opening form on the website of the brokerage house you have chosen. You can download the application form and fill it up and submit it. Nowadays, many brokers have a pop-up form where you just have to enter your name, phone number, and email address and submit. Then the brokerage house executives will contact you and help you complete the remaining account opening procedure.
However, if you want to open an account offline, you will have to visit the branch office of the brokerage house. There you have to get in touch with a relationship manager and get the Demat account opening form from them. Then you will have to fill out the form by entering all the details duly, and submit the form along with the documents mentioned above.
Opening a Demat account has been made easy with technology, and you can open it within the blink of an eye. Moreover, with e-KYC and other facilities, the process has become hassle-free.