Open Demat Account

What is a Demat account?

The simplest Demat account meaning is a Dematerialization Account. A Demat Account is similar to a bank account – it is used to hold investments in an electronic form. An online Demat account may be used to hold shares or stocks, mutual funds, government securities, ETFs, and bonds.  

Some benefits and information about Demat Account

Opening and operating a Demat account is hassle-free and involves no paperwork.  
You can open and maintain a zero-balance Demat account, maintaining balance is not compulsory. 
Enter the world of next-gen Demat accounts with 5Paisa. Powered by cutting-edge security features, all your investments can now be managed conveniently under one umbrella.  
What’s more, you receive precious investment inputs from experts AND brokerage cash back when you invest through the 5Paisa app! 
With 5Paisa’s Margin Funding feature, you can now fund your debit at a steady rate of 0.06% per day. 

Aims and Objectives of a Demat Account

The primary use of a Demat account is to hold your investments in electronic form. Let us look at the main aims and objectives of Demat account systems-  

1. Electronic Format: To provide an electronic format for storing all investment details of an investor. 
Easy Share-Transfer: Receipt and delivery instruction slips are used to buy and sell shares easily through a Demat account. 

2. Safekeeping of Securities: Physical share certificates run the risk of getting damaged or misplaced. A Demat account eliminates that risk and stores your securities safely. 

3. Screening of Frauds: While a physical share certificate is prone to forging and fraud, an electronic certificate can be verified for authenticity easily, thereby making share trading even safer. 

4. Loan Collateral: Shares held in your Demat account can be used to get a loan from your Depository. 
Account Freezing Facility: To control the debit and credit flow of an account, you can opt to freeze it for a given period.  
 
It is important to learn how to use Demat account features so that you can take advantage of the investment benefits they offer. 5paisa’s Demat account is designed in such a way that it can be used by anyone, even if you are a novice in the share market world! 

Open a Demat Account with the 5paisa App 4 Easy Steps

The procedure to open a Demat account just got super simple. You can now open a Demat account in 4 easy steps with the 5paisa app! 

1. Download the 5paisa app from Apple Store or Google Playstore. 
2. Select the ‘Open Demat Account’ Option. 
3. 5paisa executives will contact you and guide you through the account opening process. 
4. Submit the required documents, verify your KYC.  

The documents required for Demat account KYC

List of documents required to open a Demat Account

1. Documents required for Proof of Identity  
- Voter Identity Card  
- Aadhaar Card  
- PAN Card with photograph  
- Passport   
- Driving Licence   
- College Identity cards  
  
2. Documents required for Proof of Address 
Documents acceptable for address proof are as follows:  
- Utility bill dated less than two months from any service provider (electricity, telephone, post-paid cell phone, gas pipeline, water bill).  
- Bank account statement  
- Land Receipt  
- Ration Card  

3. The address copy of an employer-issued by the state government or central government departments, banks, financial institutions, etc 
 
And you are done! Instant Demat account is now available at your fingertips. 

Now that you have learned how to create a Demat account, download the 5Paisa app today to complete the Demat account opening process.  
 

5paisa Demat Account – The Investment Partner You Can Count On

With the 5paisa app, you can now open a free Demat account from the comfort of your home. 5paisa takes 0% brokerage fee, which means you have to pay no Demat account charges. Besides being the best free Demat account in the market, it has a simple interface that is very easy to use. All transactions are paperless. You also get regular updates on the hottest investment opportunities available in the market.  
 
Open a free Demat account with the 5paisa app today to start trading and generating wealth!