A demat account is one of the basic requirements to trade online. A demat account allows investors to convert physical shares into the dematerialized format and hold them in electronic form. It facilitates free online trade, enhancing ease and convenience for investors.

Apart from shares, the demat account can also hold bonds, ETFs, mutual funds, gold bonds, and other similar assets with a unique ISIN number.

• All your investments are held in an electronic form, which reduces paperwork.

• Eliminates all the risks associated in dealing with physical shares like physical damage or misplacement.

• Ensures safety of your stocks with no storing risks.

• Quick transfer of shares.

• Allows faster transaction, resulting in quick credit for investors.

For Individuals, documents required include:

• PAN Card

• Address Proof (Aadhaar Card preferred)

• Bank Proof

• Income Proof (For derivatives & currency segment)

• Signature (on blank white paper)

Note: If bank verification fails, bank proof is mandatory to submit.

We have 2 types of Accounts i.e. All in One Account and Only Mutual Fund Account. For individuals, we charge Rs. 300 + GST as processing charges for All in one Account and Only Mutual Fund Account opening is free. All in One account processing fee consists for all the segments you trade with 5paisa. There are no segment wise charges applicable. For non-individual, we charge account opening fees of Rs. 1,025 + GST.

If you are opening an online A/c with us, then once your documents are successfully verified and e-Sign is done, your A/c will be activated within 1 hour. You would receive a welcome email to your registered email id.

If you have applied for offline A/c opening and sent across your application along with the documents, it generally takes 24 hours for your account to be activated. Any discrepancies in the submitted forms or documents would delay the account opening process.

You can open All-in-one Investment Account. This is the right choice for you if you wish to invest in stocks directly as well as invest in mutual funds. You get a Trading A/c + Mutual Funds + Demat A/c. You can also open Only Mutual A/c, if you wish to invest only in Mutual Funds.

Anyone can open a demat account with 5paisa – Individual, Corporate, Partnership Firm, Trust, HUF or LLP (Limited Liability Partnership).

Demat account can be transferred from one Depository Participant to another. You need to submit the transfer or closure request by sending us an email at support@5paisa.com

Demat Account is mandatory for trading in the stock market. It is not required for Mutual Fund investments of any kind including SIP.

It is advisable to get the allotment of an IPO in demat form as the shares issued are tradable only in the demat form. However, an investor has the option to apply and receive the shares in physical form. In any case, for all IPO of any security of issue size of Rs. 10 crore or more, issues have to be compulsorily be only in dematerialized form.

You can open a demat account in the name of a single holder account or a joint holder account. A demat account can have maximum three account holders - one main holder and two joint holders.