How To Open A Demat Account Opening a demat account is really easy. One needs to ensure that they select the right depository participant and fill the demat account opening form in time. The same could be explained in four easy steps as follows: Select the Depository Participant (DP)>> Fill up demat account opening form>> In-Person Verification>>Pay Account Maintenance Fees PROCEDURE TO OPEN A DEMAT ACCOUNT Step 1. First select where you want to open a Demat Account and then select the Depository Participant you want to open demat account with. Most brokerages and financial institutions offer the service.

First select where you want to open a Demat Account and then select the Depository Participant you want to open demat account with. Most brokerages and financial institutions offer the service. Step 2. Then fill up demat account opening form and submit along with copies of the required documents and a passport-sized photograph. You also need to have a PAN card. Also carry the original documents for verification.

Then fill up demat account opening form and submit along with copies of the required documents and a passport-sized photograph. You also need to have a PAN card. Also carry the original documents for verification. Step 3. You will be provided with a copy of the rules and regulations, the terms of the agreement and the charges that you will incur.

You will be provided with a copy of the rules and regulations, the terms of the agreement and the charges that you will incur. Step 4. During the process, an In-Person Verification would be carried out. A member of the DP’s staff would contact you to check the details provided in the demat account opening form.

During the process, an In-Person Verification would be carried out. A member of the DP’s staff would contact you to check the details provided in the demat account opening form. Step 5. Once the application is processed, the DP will provide you with a demat account number and a client ID. You can use the details to access your demat account online.

Once the application is processed, the DP will provide you with a demat account number and a client ID. You can use the details to access your demat account online. Step 6. As a demat account holder, you would need to pay some fees like the annual maintenance fee levied for maintenance of the demat account and the transaction fee -- levied for debiting securities to and from the account on a monthly basis. These fees differ from every service provider (called a Depository Participant or DP). While some DPs charge a flat fee per transaction, others peg the fee to the transaction value, and are subject to a minimum amount. The fee also differs based on the kind of transaction (buying or selling). In addition to the other fees, the DP also charges a fee for converting the shares from the physical to the electronic form or vice-versa.

As a demat account holder, you would need to pay some fees like the annual maintenance fee levied for maintenance of the demat account and the transaction fee -- levied for debiting securities to and from the account on a monthly basis. These fees differ from every service provider (called a Depository Participant or DP). While some DPs charge a flat fee per transaction, others peg the fee to the transaction value, and are subject to a minimum amount. The fee also differs based on the kind of transaction (buying or selling). In addition to the other fees, the DP also charges a fee for converting the shares from the physical to the electronic form or vice-versa. Step 7. Minimum shares: A demat account can be opened with no balance of shares. It also does not require that a minimum balance be maintained.

WHAT ARE THE DOCUMENTS REQUIRED TO A DEMAT ACCOUNT?

To open a demat account, you need to submit proofs of identity and address along with a passport size photograph and the demat account opening form. Only photocopies of the documents are required for submission, but originals are also required for verification.

Here is a broad list of documents that can be used as proofs for demat account opening:

PROOF OF IDENTITY PAN card, voter's ID, passport, driver's license, bank attestation, IT returns, electricity bill, telephone bill, ID cards with applicant's photo issued by the central or state government and its departments, statutory or regulatory authorities, public sector undertakings (PSUs), scheduled commercial banks, public financial institutions, colleges affiliated to universities, or professional bodies such as ICAI, ICWAI, ICSI, bar council etc. PROOF OF ADDRESS Ration card, passport, voter ID card, driving license, bank passbook or bank statement, verified copies of electricity bills, residence telephone bills, leave and license agreement or agreement for sale, self-declaration by High Court or Supreme Court judges, identity card or a document with address issued by the central or state government and its departments, statutory or regulatory authorities, public sector undertakings (PSUs), scheduled commercial banks, public financial institutions, colleges affiliated to universities and professional bodies such as ICAI, ICWAI, Bar Council etc.

WHAT NEXT?

Now that you know all about dematerialization and demat accounts, read about trading accounts – a must have for investing in the share market – and how they differ from a demat account. Click here.

If you are looking to open a demat account with Kotak Securities, click here.