Benefits of a Demat account

A demat account is important because it:

-Gives you a hassle-free experience when buying and selling shares: Physical share certificates can be lost, stolen, or damaged. When you hold shares in a demat account, they are stored electronically, so there is no risk of them being lost or stolen. In addition, transferring shares is much simpler and quicker when they are how to open demat account.

-Facilitates easy trading: You can buy and sell shares quickly and easily as there is no need to go through the process of transferring physical share certificates each time you want to make a trade.

-Makes it easier to track your investments: When you hold shares in a demat account, you can view all your investments in one place. This makes it easier to keep track of your portfolio and monitor the performance of your investments.

-Reduces the risk of fraud: There have been cases of fraud where physical share certificates have been forged or tampered with. Holding shares in a demat account reduces the risk of fraud as the securities are held in an electronic form that cannot be altered.

-Lowers transaction costs: Buying and selling shares incur transaction costs such as brokerage fees and stamp duty. When you hold shares in a demat account, these costs are lower as there is no need to pay for the transfer of physical share certificates each time you make a trade.

How to open a Demat account in India.

Who can open a Demat account

Any Indian citizen above the age of 18 years with a PAN card can open a Demat account.

NRI (Non-Resident Indians) can also open a Demat account in India provided they have an NRE or NRO bank account.

A foreign national can also open a Demat account in India, provided he has obtained the required permissions from the Reserve Bank of India (RBI).

What are the documents required to open a Demat account

The following documents are required to open a Demat account:

1) PAN Card

2) Address Proof – Passport, Voter ID, Driving License, Aadhar Card, Rent Agreement

3) Bank Statement/Passbook for the last 6 months

4) Cancelled cheque leaf

5) Income Tax Return (ITR)/Form 16 for the last 2 financial years

6) Photographs – Two passport-size photographs

7) Signature specimen – Two signature specimens as registered with the bank

8) Overseas Citizen of India (OCI)/Person of Indian Origin (PIO)/Foreign National card, if applicable

9) Depository Participant agreement form and KYC form duly filled and signed by the applicant

How to open a Demat account online

There are two ways to open an online demat account – through your broker or directly with any of the depositories in India viz., CDSL or NSDL. To start off, you will have to fill up an application form and submit it along with the KYC documents mentioned above. Once your application is approved, you will be allotted a demat account number which will be used for all your future transactions Brokerage Charges. The process of opening an online demat account is simple and hassle-free. You can even do it from the comfort of your home without having to visit any office or branch.


A Demat account is a must for anyone who wants to invest in shares and securities in India. It is a simple and convenient way to hold your investments and track their performance. You can open a Demat account online or offline, depending on your preference. The process of Dematerialization ensures that your investments are safe and secure.