How to Open a Demat Account in India | Complete Step-by-Step Guide 2026
Introduction
Opening a Demat account is the first and most essential step for anyone who wants to start investing or trading in India. Whether you want to buy stocks, mutual funds, ETFs, government securities, or apply for IPOs, a Demat account stores all your holdings digitally in one safe place.
This step-by-step guide is How to Open a Demat Account in India and crafted to help beginners understand the entire Demat account opening process clearly, without confusion. The article is fully SEO-optimized, easy to read, and structured in a way that increases the chances of ranking on Google.
What Is a Demat Account?
A Demat (Dematerialized) account is an electronic account used to store shares and other financial securities in digital form.
Just like a bank account holds your money, a Demat account holds your investments safely and conveniently.
Key Benefits of a Demat Account
- Secure digital storage of all investments
- No risk of paper certificates
- Easy buying, selling, and tracking of shares
- Faster settlement process
- Can be linked with trading & bank accounts
Requirements to Open a Demat Account in India
Before beginning, keep the following documents ready:
Mandatory Documents
- Aadhaar Card (for identity & address proof)
- PAN Card (mandatory for stock market investments)
- Bank Account Details (passbook or cancelled cheque)
- Signature on white paper
- Passport-size photograph (if required)
Optional (In some cases)
- Income proof (only for derivatives trading)
Having these documents handy speeds up the entire account opening process.
Step-by-Step Guide: How to Open a Demat Account in India
Step 1: Choose a Depository Participant (DP)
In India, Demat accounts are operated under two depositories:
- NSDL
- CDSL
You must open an account through a DP (Depository Participant) such as a stockbroker or bank.
Factors to compare before choosing a DP:
- Brokerage charges
- AMC (Annual Maintenance Charges)
- Account opening fees
- Platform speed
- Customer support
- Mobile app quality
Choose a DP that matches your investing or trading style.
Step 2: Fill Out the Online Account Opening Form
Most brokers offer a fully digital onboarding experience.
You simply need to:
- Enter mobile number
- Enter email ID
- Provide PAN, Aadhaar, date of birth
- Set up login credentials
This begins the Demat + Trading account creation process.
Step 3: Complete KYC Verification
KYC (Know Your Customer) is mandatory for all stock market participants.
You will be asked to upload:
- Aadhaar
- PAN
- Address Proof
- Signature
- Bank proof
Some platforms fetch Aadhaar details automatically using OTP verification.
Step 4: Complete the IPV (In-Person Verification)
As per SEBI guidelines, brokers must verify your identity live.
This is done through:
- A short live video
- Or uploading a video with PAN & Aadhaar shown
- Or AI-based face verification
This takes less than 2 minutes.
Step 5: E-Sign the Documents Using Aadhaar OTP
After KYC, the next step is e-signing.
You will receive an OTP on your Aadhaar-linked mobile number.
Once entered, the form is digitally signed and submitted.
Step 6: Get Your Demat Account Number & Login Details
After verification, you will receive:
- Your Demat account number (16-digit / 14-digit)
- Your Trading account ID
- Login credentials for mobile & web platform
You can now start buying and selling shares.
Charges Involved in Opening a Demat Account
While charges vary by broker, the common ones include:
1. Account Opening Charges
Some brokers charge a one-time fee, while many offer free account opening.
2. Annual Maintenance Charges (AMC)
Yearly fees to maintain the Demat account.
3. Brokerage Charges
Applicable when buying/selling shares via the trading account.
4. Transaction Charges
Small fees for debit of shares from your Demat account.
Always check the pricing before finalizing your DP.
Tips Before Opening a Demat Account
- Choose a reputed broker with a stable platform
- Avoid brokers with hidden charges
- Always enable 2FA for security
- Understand brokerage structure before trading
- Start with simple investments like ETFs or blue-chip stocks
FAQ: How to Open a Demat Account in India
1. Is PAN card mandatory to open a Demat account?
Yes, a PAN card is compulsory for opening a Demat and trading account.
2. Can I open a Demat account without a bank account?
No. A savings bank account is required to link funds for buying and selling securities.
3. How long does it take to open a Demat account?
Most online brokers approve the account within 10–30 minutes after verification.
4. Can a minor open a Demat account?
Yes, a minor can open a Demat account under the supervision of a guardian.
However, trading activities are limited.
5. Do I need to maintain a minimum balance in my Demat account?
No. There is no minimum balance requirement.
6. Can I open multiple Demat accounts?
Yes. You can open more than one Demat account with different brokers, but each requires a separate KYC and charges.
7. Is a Demat account necessary for IPOs?
Yes. Shares allotted through IPOs are deposited directly into your Demat account.
8. Are Demat accounts safe?
Yes. They are regulated by SEBI and operated under CDSL/NSDL, ensuring high security.
