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Opening a Demat Account Online

How To Open Demat Account Online

Introduction to Demat Account

Prior to 1996, trading used to be done in India by exchanging actual physical share certificates between buyers and sellers. However, the Securities and Exchange Board of India (SEBI) introduced the process of Dematerialisation in 1996, which revolutionised the broking industry. Dematerialisation is the process of converting physical securities into electronic form. This allows for safe and quick trading, monitoring, and transferring of securities thereby eliminating the risk of theft, forgery, and duplicacy.

While mandatory and beneficial, a Demat account does come with its own set of charges which you must consider before opening a Demat account.

Charges Associated with Demat Account

In addition to brokerages, stockbrokers also charge a variety of fees for opening and maintaining Demat accounts , which typically differs depending upon the type of broker like full service broker and discount broker. Here’s a list of charges to be considered before opening a Demat account:

Annual Maintenance Charges

- Regardless of how many transactions you conduct each year, there is an annual fee for maintaining your Demat account called ‘Annual Maintenance Charges.’

Account Opening Fees

- Many brokers charge a one-time, non-recurring Demat account opening fees.

Transactional Charges

- Brokers also charge transaction fees like DP charges , Rematerialisation (electronic to physical) charges, Destatementisation (converting physical mutual fund units to electronic form) and mutual fund units conversion charges.

Before we proceed to look at the documents required and process of opening a Demat account, let us quickly go through the key points to consider before opening a new Demat account.

Key Points to Consider When Opening Demat Account

Watch out for all the Demat account fees

- Review the charges before submitting your account opening form. Knowing the costs up front helps to guarantee that you are getting the best bargain possible and that there are no unexpected fees.

Link your Demat account to your trading account

- Demat account can only be used to store assets not trade them. This is why linking your Demat and trading account is a must.

Set forward your nomination

- It is crucial to have a nominee for your Demat account because in future it makes share transfers more simpler for your family members.

Correctly enter your information

- Remember to double check the information submitted in your Demat account opening form as any errors may lead to rejection.

Since opening a Demat account is mandatory to trade in the stock market, let us look at the documents required and steps to be followed to open a Demat account online.

Documents Required for Opening Demat Account Online

The easiest way to ensure a hassle-free and quick account opening process is to keep all the documents required to open a Demat account handy, like:

Identity Proof

- PAN card

Address Proof

- Aadhaar card, Driver's licence, Passport etc.

Income Proof

- Salary slip, bank account statement, Income tax return etc.

Bank Proof

- Cancelled cheque, Passbook etc.

Once you have gathered all the necessary paperwork, simply follow the below steps to open a Demat account with m.Stock in less than 5 minutes:

How To Open Demat Account Online with m.Stock

  1. Visit www.mstock.com or download the m.Stock App from App Store or Play Store
  2. Enter your mobile number and OTP
  3. Enter personal information such as Pan card details, address and income details
  4. Enter bank details, to be linked to Demat and trading account
  5. Pay the account opening fees. It is recommended to select the Rs 999 payment option as it facilitates free trading for life across products.
  6. Upload necessary documents and that's it! Once verified, you will receive the account opening credentials within 24 hours and you can start trading.

The most crucial step in your desire to invest in the stock market and generate higher returns is to know how to open a Demat account. But not all Demat accounts are beneficial as high brokerage reduces your take-home profits substantially. This is why m.Stock’s Zero Brokerage proposition is a revolution. With a one-time fee of Rs 999, you can trade without paying brokerage across all products for life! So, take advantage of zero brokerage and open a Demat account online with m.Stock in less than 5 minutes.

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