A Demat account (Dematerialised Account) is an electronic account used to hold your financial securities—such as stocks, ETFs, bonds, gold ETFs, REITs, and mutual fund units—in digital form. It works just like a bank account, but instead of holding money, it safely stores your investments.
In India, all demat accounts are maintained with NSDL or CDSL through registered Depository Participants (DPs) such as banks, brokers, and investment platforms.
Why You Need a Demat Account
- To buy and sell stocks on the stock market
- To hold ETFs, REITs, corporate bonds, etc.
- For IPO allotments
- Secure, paperless storage of all your investments
(Note: You don’t need a Demat account to invest in mutual funds through AMCs or distributors.)
How to Open a Demat Account in India
Opening a demat account is quick and completely online. Here are the steps:
- Choose a Depository Participant (DP)
Select a bank, stockbroker, or online investment platform that is registered with NSDL or CDSL. - Fill Out the Online Application Form
Provide your basic details such as name, PAN, mobile number, and email ID. - Complete KYC Verification
Upload documents like:- PAN card
- Aadhaar card
- Address proof
- Recent photograph
- Bank account details
- Complete Video KYC / IPV
Most platforms require a quick video verification to confirm your identity. - E-Sign the Agreement
Digitally sign the DP agreement using Aadhaar-based e-sign. - Your Demat Account Is Activated
Once approved, you’ll receive:- BO ID (Beneficial Owner ID)
- Login credentials for your demat & trading account
You can now start buying and selling securities.
The exact process may vary from DP to DP. For the individual process, we suggest that you to contact the respective DP.
