A Step By Step Guide On Online Demat Account Opening Process

Every investor who wants to trade in the stock market must have an online Demat Account for storing and accessing his share certificates electronically. The two major depositories; CDSL (Central Depository Services Limited) and NSDL (National Securities Depository Limited) are the operators of these accounts in the country. Indian citizens, as well as NRIs (Non-Resident Indians), are both eligible for opening the Demat Accounts if they have the required documents and interest in the stock market. The nature of these accounts confuses a lot of budding members of the trade industry as the concept is still new to most of them. Therefore, it is better to understand the nitty-gritty and process of online Demat Account opening to avoid last-moments hassles.

A new start to the money market can be full of anxiety and anticipation, so one must be well-prepared for opening the Demat Account online. Get the basic idea from the details mentioned below and then consult with the preferred Depository Participants to start the further process. Understand the importance of each step carefully and then follow them intently without missing out on possible chances.

step-by-step instructions to open the account

Follow the step-by-step instructions to open the account without letting off any doubts.

Know The Participants For Opening Online Demat Account

Before starting with the online Demat Account opening procedure, traders must know about the participants who play a vital role in this process. One has to bring coordination between these three parties to connect the required accounts that are mandatory for trading in Stock Exchanges. Missing out on any of these participants can cause one to lose his chances of the flow of trading.

Sl. No.Name of The ParticipantRole To Play
1.Commercial BankTraders need their bank details to link the general savings account with the online Demat Account.
2.Major DepositoriesCDSL and NSDL are the ones who offer the services with the help of other Depository Participants (DPs).
3.Depository Participants (DP)The DP work under the instructions of major depositories to offer account opening services.

The Detailed Guide To Opening The Online Demat Account

For opening the Demat Account online, one has to be careful with the steps as even a single mistake can cause hindrances in the procedure. The Depository Participants are always available to help the newcomers in the industry.

Find The Best Depository Participant

In India, there are as many as 589 Depository Participants registered under the CDSL and over 288 Participants registered under the regulations of NSDL. Recently, NSDL achieved the milestone of two crores Demat Accounts under its services. Therefore, a trader has to identify his trading requirements and need to choose his preferred Depository Participant out of the hundreds of options available.

While some of the DPs offer a 3-in-1 account facility where you can get all the services under one roof, it is better to choose the 2-in-1 option. However, most of the experienced traders prefer keeping their savings account separate from the other two. So, whatever one chooses must depend upon his personal choice.

Visit The Website and Make An Application

After figuring out the DP, take the online website and make an enquiry/application on the open Demat Account option. This toggle is usually available on the home page of the site but if one does not find it, check the drop-down arrows on the top of the page. This way is the starting point of opening the Demat Account.

Enter Basic Details and Required Information

The “open Demat Account” portal will have a page that will demand a few basic details of the applicant. The trader has to enter their name, address, email ID, contact number, bank details, etc. All this information is essential for the Depository Participant to initiate the Demat Account opening request. One or two requirements might differ from one DP to another, but traders must always provide accurate details.

Avail The OTP (One Time Password)

After mentioning all the details, hit submit, and the site will send an OTP (One Time Password) to the given phone number and email address. Using that OTP, traders can verify their details after which the application will be accepted.

Verify The Contact Details

Once the trader enters the OTP, the Depository Participant will begin the further formalities. One should make sure that the contact details are the same as that in their savings account so that it will be easier to link it with the online Demat Account and trading account.

Demat and trading accounts

Accessing the online trade market with Demat and trading accounts is no more rocket science!

Consult The Relationship Manager From The Customer Service

After the successful application, the customer service department will reach out and give a brief description of the documents required for opening the account. Traders must clarify all their doubts while talking to the consultant to avoid hiccups.

Prepare All The Documents And Submit Online

One has to collect all the required documents like Aadhar card, voter ID card, trading license (if any), passport size photo, bank statement, copy of any recent electric bill, etc. One has to scan all these documents and submit the soft copies online on the website.

Complete The KYC Verification Process

After accepting the documents, the authorised individual from the customer service department will ask the trader to go through the KYC (Know Your Customer) verification process. Earlier, traders had to visit the DP office for this one, but now this can also be done online. All one needs to have is access to a webcam on their computer as this process will need him to go through a video call.

Wait For Account Activation Call

Once the KYC process is done, traders can relax a bit as the process is almost complete hereafter. The DP’s representative will give a call to confirm the completion of the process and provide a unique ID that will help the traders to access their online accounts.

The steps to open the Demat Account online is easy and time-saving given the traders can complete it by themselves. No need to rush after brokers anymore! To experience the best trading experience, choose the Depository Participant very carefully. Do not listen to myths but believe facts that are available on reliable websites.

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