Demat Account
by 5paisa Research Team Last Updated: 2023-11-02T08:37:09+05:30
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If you are curious about the stock market and are looking to invest in stocks, the first step is to open a Demat account. No matter your ultimate financial objective, a Demat account is required for conducting any transactions in the share market. This article explains the steps involved in opening a Demat and trading account.

What is a Demat account?

Demat accounts, or dematerialized accounts, allow you to hold securities such as stocks, mutual funds, exchange-traded funds (ETFs), bonds, etc., in electronic form for trade in the securities market.  These accounts are supported by NSDL and CDSL, both regulated by SEBI, and they allow you to store the securities you purchase. 

How to Open a Demat Account?

To open a Demat account with 5paisa, follow the simple steps mentioned below.

  1. Visit 5paisa's website/Download App to Open a Demat Account.
  2. Now enter your phone number and click on “Open account”. 
  3. You will receive a verification code on your registered number. Now, input the code and click on the “Apply Now” button.
  4. Next, provide your email address and the verification code.
  5. Enter your PAN number and DOB, and click on “Proceed.”
  6. Complete the E-KYC process.
  7. Complete the Verification Procedure. It will require you to upload a selfie in real time.
  8. E-sign the form to complete your account opening procedure.

How to Open a Demat Account using the 5paisa App

  1. Install the 5paisa app from the Google Play Store or Apple Store.
  2. Choose the option to “Open Demat Account”.
  3. An executive from 5paisa will contact you and assist you in opening an account.
  4. Complete the KYC process and submit the required documents.


Documents Required for Demat Account

  • Proof of identity: Voter's ID, PAN card, Aadhaar card, passport, or driving license.
  • Proof of Address: Ration card, telephone bills, electricity bills, property tax receipts, passport, bank passbook, voter's ID, or Aadhaar card.
  • Proof of Income: Photocopy of the Income Tax Return (ITR), recent salary slip, bank A/C statement of the current bank, or canceled personalized cheque.


Demat Account Opening Charges

These are the charges involved with opening a Demat account with 5paisa.

Transaction Type of Charges Fee
Trading Account Opening Charges One Time Rs 0 (Free)
Demat Account Opening Charges  One Time Rs 0 (Free)
AMC or Annual Maintenance Charges for Trading Yearly Fee Rs 0 (Free)
AMC or  Annual Maintenance Charges for Demat Accounts Yearly Fee Rs. 300

Key Factors to Consider When Opening a Demat Account

Easy Access: A Demat account offers quick and easy access to all your investments and statements through online banking.

Safety: In the era of physical shares, the risk of losing, damaging, or having shares stolen was a constant concern. A Demat account functions as a digital safe, safeguarding your investments in electronic form, eliminating worries about misplaced shares, and providing protection against damage, theft, or forgery.

Convenience: Trading in the stock market has never been easier, thanks to Demat accounts. You no longer need to carry bundles of cash to the stock exchange. This convenience is a key goal of having a Demat account.

Transferring shares used to be a lengthy process that involved sending physical shares to the registrar, which could take months to complete. With a Demat account, transferring securities has become lightning-fast. 

Convenience is at the heart of Demat accounts. Like buying and pasting share market stamps and the restrictions on selling shares in odd lots. 

So, the main idea behind a Demat account is to make trading in the capital markets hassle-free and incredibly convenient. It's all about saving you time and effort while ensuring your investments are secure and easy to manage.

Cost Efficiency: Trading used to be a paper-heavy process, and it took a lot of time. But now, things are much better. Demat accounts have made the system efficient and reduced the costs of trading.

Prior to Demat accounts, you had to buy a special stamp and stick it to your physical share certificate to trade. It was a hassle, especially for people from smaller towns. But with Demat accounts, you don't need those stamps anymore. This has made trading cheaper and more convenient for everyone.

Now that you know how to open a Demat account, click here to open your own free Demat account. 


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More About Demat Account

Frequently Asked Questions

AMCs, physical statements, and costs involved in dematerialisation and rematerialisation are some of the charges associated with Demat accounts.

 You can visit the 5paisa website and open a free Demat account. It offers the best services on the market and is the best choice for opening a Demat account.