How to Open Demat Account Online?

If you are curious about the stock market and are looking to invest in stocks, the first step is to open a Demat account. No matter your ultimate financial objective, a Demat account is required for conducting any transactions in the share market. This article explains the steps involved in opening a Demat and trading account.
 

What is a Demat account?

Demat accounts, or dematerialized accounts, allow you to hold securities such as stocks, mutual funds, exchange-traded funds (ETFs), bonds, etc., in electronic form for trade in the securities market.  These accounts are supported by NSDL and CDSL, both regulated by SEBI, and they allow you to store the securities you purchase. 
 

How to Open a Demat Account Online?

To open a demat account with 5paisa, follow the simple steps mentioned below.

• Download and use 5paisa's trading app or access our website to begin the demat account opening procedure conveniently from your device. 

• Enter your email address, receive a verification code, and input it to verify your email for the account setup process. 

• Provide your PAN number and date of birth, then click on “Proceed” to move to the next step in the demat account opening process. 

• Follow the online steps to complete the electronic Know Your Customer (E-KYC) process, ensuring your identity is verified digitally with ease. 

• Upload a real-time selfie as part of the verification procedure to confirm your identity and move towards the next step of demat opening. 

• E-sign the form electronically to finalize the account opening procedure, making your demat account ready for trading and investing in the stock market.

How to Open a Demat Account Offline?

5paisa offers an offline demat account opening process for non-individual entities. The steps to open a demat account are as follows

• Complete the Account Opening Form accurately with all required information for the non-individual entity.
• Fill out the FATCA (Foreign Account Tax Compliance Act) form to comply with regulatory requirements.
• Print the additional forms and fill them out on the official company letterhead according to the non-individual category requirements.
• Submit all necessary documents, including the completed forms, for verification to 5paisa.

To open a demat account offline, contact accountopening@5paisa.com. For required documentation for each non-individual category, follow the provided link to ensure you have all necessary documents for the process.

Types of charges associated with opening a demat account

When you open a Demat account with 5paisa, you may encounter a variety of charges designed to ensure a smooth investment experience. Here's a complete overview of the charges:

• Trading account opening charges:
This is a one-time price, however at 5paisa, there are no expenses, so you may start a trading account for free.

• Demat Account Opening Charges:
This is a one-time cost, similar to those for trading accounts. With 5paisa, you may start a Demat account for free.

• Annual Maintenance Charges (AMC) for trading accounts:
This is an annual price, however 5paisa does not charge an AMC for keeping your trading account, making it affordable.

• Annual Maintenance Charges (AMC) for Demat Accounts:
This is a yearly fee of ₹300. This charge covers the continued management and maintenance of your Demat account holdings.
 

Documents Required for Demat Account

To open a Demat account, you need to provide some documents for verification.

 • Proof of Identity: 
Submit a Voter's ID, PAN card, Aadhaar card, passport, or driving license to confirm your identity.

• Proof of Address: 
Provide a ration card, telephone bill, electricity bill, property tax receipt, passport, bank passbook, voter's ID, or Aadhaar card to validate your address.

• Proof of Income: 
Present a photocopy of your Income Tax Return (ITR), a recent salary slip, a bank account statement of the current bank, or a canceled personalized cheque to verify your income.

These documents ensure compliance with regulatory requirements and help in the seamless processing of your Demat account application.