Want to invest in stocks and IPOs? Here is how you can open a demat account

SOURCE: IPO INFO

The Sensex, India’s benchmark index, has attracted a lot of investor attention in the recent year, resulting in an increase in the number of Demat account holders.

This is because, in order to invest in any financial instrument, you must first open a Demat account. A Demat account, like a savings account, keeps all of an investor’s investments in one place: stocks, mutual fund units, bonds, and so on.

From 4.02 crore in February 2020 to 6.02 crore in June 2021, the number of Demat account holders in India surged by about 50%.

If you’re looking to invest in the stock market, debt instruments, mutual funds or even IPOs, here is how you can do it by opening a Demat account.

Here are some examples of brokers you can open your account with:

Motilal Oswal
Angel One
HDFC Securities
Sharekhan
Zerodha
Upstox
Groww
5 Paisa
Paytm Money

List of important documents required for opening of a Demat account

While a Demat account can be easily opened online now, one requires several documents to submit online for the know your customer (KYC).

Identity proof from any one of these — Aadhaar card, PAN card, driving licence, voter ID card etc.
Address proof from any one of these — passport, electricity bill, ration card, gas bill, landline telephone bill etc.
Cancelled cheque of the bank account you want to transact with.
Proof of income from any of these — latest salary slips, income tax returns copy, bank statement for last 6 months, copy of Form 16.

Further, charges to open a Demat account differ from banks to stock brokerages to discount brokers to online investment platforms. A typical online investment platform like Zerodha charges around ₹200-300 annually. Banks charge up to ₹900 to open such an account.

Steps to open a Demat account

Step 1: Choose the broker you want to open an account with.

Step 2: Visit the company’s website and start the Demat account opening process.

Step 3: Fill out the information required to know your consumer (KYC).

Step 4: Submit the scanned copies including identity proof, bank account statement, income proof, photo to complete the KYC.

Step 5: After submitting all the documents and verifying them, pay the required amount for trading.

Step 6: At the end of the process you will receive a unique 16-digit beneficial owner identification number (Demat account no.), which will be used to access the Demat account online.

Step 7: Log in with the Demat account number and walk into your investments.

Open your Demat Account with Zerodha

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