Are you contemplating stock market investments or participating in an IPO? if yes then as per SEBI guidelines you are obligated to open a Demat account. A Demat account holds your securities in digital or electronic form. Nowadays, you can easily open a Demat account online at zero cost. It is a paperless process and gets completed within minutes if your KRA (KYC Registration Agency) authentication is already done.
You can fill out the KYC form online and submit it to your stockbroker with required supporting documents, If you are a Non-KRA verified individual. Thereafter, you have to undergo a personal verification process to complete your KYC registration.
If you do not know how to create a Demat account online, you may go through this article to understand the same.
Steps to create Demat Account for online trading
1. Visit your chosen broker’s website
Once you have selected an online broker, visit the broker’s website and access the online Demat account registration page. You will also be able to apply for a trading account online along with a Demat account. A trading account is mandatory for transacting in secondary markets. Open both the Demat and trading account application forms.
2. Update Basic Details
You are required to punch in your basic details like full name, contact details, home address, PAN details, etc. A PAN card is compulsory for booking Demat and trading accounts online.
3. Complete OTP Verification
You will receive an OTP on your provided number or e-mail address for authentication purposes. You need to enter your OTP to proceed further. It may be better to provide your Aadhar registered mobile number for OTP validation.
4. Provide other details
Your Demat and trading accounts are linked to your bank account to ensure the successful execution of online trades. This 3-way linking facilitates the easy transfer of money for the quick processing of online trades. Hence, furnishing your bank details is of utmost importance. Besides, you also need to enter other details like marital status, education, income, trading experience, etc.
5. Make payment
Brokers offer specialized subscription plans for both amateur and professional investors. You may choose a pricing plan based on your level of trading expertise, the kind of trades you execute, trading frequency, preferred pricing model, trading volumes, etc., and make payment accordingly.
For example, if you wish to execute margin trades or derivative trades along with equity delivery/intraday trades, then you may select advanced subscription plans. Similarly, if your trading volumes are high, you may go for flat-fee plans instead of volume-based fee plans. This is an important step as choosing the appropriate subscription plan may considerably reduce your brokerage fees.
6. Upload KYC documents
You need to upload soft copies of KYC (Know-Your-Customer) once you have filled out the account opening forms. You need to upload identity proof, address proof, PAN card, your passport-sized photo, income proof, and a canceled bank cheque. You can use an Aadhar card, passport, election ID, driving license, or ration card as valid identity and address proofs.
7. Affix E-signature
This is the last step in the account opening process. You can run through your filled-in forms again and correct errors, if any. Once you have thoroughly checked your forms and made necessary modifications, you need to affix an e-sign. Your application process is now done.
Once you have completed the above process, you will soon receive your login details for the Demat and trading accounts from your broker. With this, your onboarding process is fully done and you can start trading online immediately. If you do not know how to create a Demat account or trading account online, then you may refer to the broker’s website for more details. You can also search online for more information. In a nutshell, the online Demat application process is simple and hassle-free.