How to open Demat Account?

Every news on the rise or fall in the stock market arouses the interest of many. And the first step to take the plunge is to open a Demat Account. In fact, in the last three years, Demat Accounts have more than doubled to 7.38 crore.

A Demat Account is a medium through which one can hold stock market shares and other securities like Initial Public Offerings (IPOs), bonds, government securities, mutual fund units and exchange-traded funds (ETFs).  A Demat Account not only assures the security of all such financial investments but also facilitates ease of their handling and maintenance.

You can read more on how a Demat Account works by clicking here.

How to open a Demat Account:

• Decide on a Depository Participant (DP), which is an authorised bank, financial institution or broker with who you want to open a Demat Account. The choice of a DP should ideally depend on the brokerage charges, annual charges and leverage provided.
• Submit a duly filled account opening form and KYC form. Along with this, you will need to attach copies of –
  
  • PAN Card
  • Residence Proof
  • ID Proof
  • Passport-sized photographs

  Do carry all the original copies during the verification purposes. You will also need to give a cancelled cheque for dividend bank details.
  

• You will then need to sign an agreement that will mention all the rules, regulations and rights associated with holding a Demat Account. Do read them carefully and do not hesitate to clear all your doubts. When this is submitted to the DP, it will be signed by an authorised person, and a copy of the same will be given to you.
• When the account is opened, you will receive a unique Client ID from the DP. This, along with other details, will help you get access to your Demat Account online.
• You will also be given instruction slips by the DP, which will be of use for depository services like transfer, purchase, etc.
  Note that a Demat Account does not require any ‘minimum balance’ of shares or financial securities to be held in it. Also, you can hold more than one Demat Account linked to a single PAN; however, not with the same DP.

How to open a Demat Account online:

A request to open a Demat Account with any DP can be applied online as well. You can easily open a Demat Account online from the comfort of your home or office, anytime in just a few clicks.

• Visit your chosen DP’s website
• Click on the ‘open Demat Account’ tab and submit the following details
• Name
• Email ID
• Mobile Number
• One-time password (OTP) that you will receive
• City
• You will receive communication from the DP to get in touch with you for completing the above-mentioned formalities and opening a Demat Account.

Dema Account details
Your Demat service provider needs to give you the following details:

• DP ID
• Beneficiary ID or Demat Account number
• Power of Attorney (POA) number

These are especially helpful if you want to apply for an initial public offer (IPO).

Are you looking to open a Demat Account? Click here to get started! HDFC Bank DigiDemat Account offers you a safe, online, and seamless mode to keep track of your investments.

*Terms and conditions apply. This is an information communication from HDFC Bank and should not be considered as a suggestion for investment. Investments in securities market are subject to market risks, read all the related documents carefully before investing.