How to Open a Demat Account in India (Step-by-Step Guide)
A Demat Account is the first essential step to start investing in the stock market. If you're planning to buy shares, ETFs, mutual funds, IPOs, or bonds—having a Demat account is mandatory. In this complete guide, we will walk you through the entire process of opening a Demat account, required documents, charges, benefits, and common FAQs.
What a Demat Account Looks Like
What is a Demat Account?
A Demat account (Dematerialised Account) is an electronic account used to store financial securities such as shares, ETFs, bonds, mutual fund units, and government securities in digital form. Instead of receiving physical share certificates, your holdings stay digitally in your Demat account.
Think of a Demat account like a digital locker where your stocks remain safe, accessible, and easy to transfer.
Why Do You Need a Demat Account?
- To buy or sell shares in the stock market.
- To apply for IPOs online.
- Safe storage of shares in electronic form.
- Fast transactions without paperwork.
- Lower risks — no physical damage or loss.
Eligibility to Open a Demat Account
- Any Indian citizen above 18 years old.
- Minors can open a Demat account (with guardian).
- NRIs can open via NRI/NRO account.
Documents Required to Open a Demat Account
1. Proof of Identity (POI)
- PAN Card (mandatory)
- Aadhaar Card
- Passport / Driving License / Voter ID
2. Proof of Address (POA)
- Aadhaar Card
- Passport
- Utility Bill (Electricity / Water / Gas)
- Bank Statement (Last 3 months)
3. Bank Proof
- Cancelled Cheque
- Passbook first page
4. Income Proof (Only If You Want Derivatives / F&O)
- 3-month Bank Statement
- ITR Acknowledgment
- Latest Salary Slip
How to Open a Demat Account (Step-by-Step)
Step 1: Choose a Stockbroker/DP
Select a trusted broker such as Zerodha, Upstox, Groww, Angel One, ICICI Direct, or HDFC Securities.
Step 2: Visit Their Website or App
Start the online application by entering your mobile number and email.
Step 3: Complete KYC Verification
Upload your Aadhaar, PAN, bank documents, and live photo. Most brokers complete KYC in minutes using DigiLocker.
Step 4: E-Sign Using Aadhaar OTP
Your Aadhaar-linked mobile number receives an OTP for digital signature.
Step 5: Account Activation
Your Demat account is activated within a few hours. You’ll receive login credentials on your email.
Demat Account Opening Screenshots
Charges for Opening a Demat Account
Charges vary broker to broker. These are approximate ranges:
| Type of Charge | Expected Range |
|---|---|
| Account Opening Fee | ₹0 – ₹500 |
| AMC (Annual Maintenance Charge) | ₹0 – ₹999 per year |
| Demat Transaction Charges | ₹10 – ₹25 per transaction |
Best Brokers to Open a Demat Account (2025)
- Zerodha – Lowest brokerage, best for traders.
- Upstox – Fast onboarding, easy UI.
- Groww – Best for beginners.
- Angel One – Excellent research & advisory.
Watch These Videos to Understand Demat Accounts
Frequently Asked Questions (FAQ)
1. Is PAN card mandatory for opening a Demat account?
Yes, PAN is compulsory for all Demat accounts in India.
2. Can I open more than one Demat account?
Yes, you can open multiple Demat accounts with different brokers.
3. How long does it take to activate a Demat account?
Usually 30 minutes to 24 hours.
4. Can students open a Demat account?
Yes, anyone 18+ can open one. Minors need a guardian.
5. Do I need a Demat account for mutual funds?
No. But if you buy mutual funds through stock brokers, they stay in your Demat account.
6. Can an NRI open a Demat account?
Yes, NRIs can open NRI/NRO Demat accounts.
7. Is opening a Demat account free?
Some brokers offer zero account opening charges.
