Demat accounts are a prerequisite for investors interested in share market instruments such as stocks, mutual funds, bonds, government securities and so on and forth. This account converts your physical share certificates into an electronic format. Demat account services are offered by banks and brokerage firms in India. Some firms also provide free demat accounts. The process of opening demat account is simple and can be completed in a few easy steps. But before you start trading, you also need to find your demat account number. Here’s how you can do both.
How to open a demat account online
Follow the below mentioned steps to open your online demat account.
- Select the brokerage firm – Research about the different brokerage firms and select one on the basis of the customer service provided, transaction platforms offered, account opening and maintenance charges and so on.
- Fill the account opening form – Once you’ve chosen the brokerage firm, you can visit their website and find the demat account opening tab. You will fill the account opening form on the website itself. Simply enter your name, mobile number and e-mail ID as asked in the form.
- Enter the OPT – Then next step for opening the online demat account is entering the One Time Password or OTP sent to the mobile number provided in the account opening form. This is essentially an authentication step, after which you will be redirected to the next page, where you need to continue filling the form.
- Continue filling the form – You now need to enter your date of birth and address in the account opening form. You must also provide PAN number and your bank account details including your bank and branch name, account number, IFSC code etc. These details are taken to facilitate trades conducted on the demat account.
- Pay the necessary fees – You must now pay the account opening charges as well as the annual maintenance fees. Firms offering free demat accounts will waive off the account opening fees.
- Wait to hear back from the brokerage firm – After all the fees are paid, your brokerage firm sends you details of your demat account on your e-mail address.
Typically, it takes 7-14 days for the entire process to be completed. Once you receive the communication, you can now log into your account, change the password and start trading.
How to find your demat account number
Most investors are confused about how to find demat account number. They can find their demat account number by following this simple trick as mentioned below.
- Open the welcome note sent by the depository partner and look for a 16 digit number mentioned on it.
- Check the depository partner (DP) with whom the account is opened. It will either be National Securities Depository Limited (NSDL) or Central Depository Services Limited (CDSL).
- If your DP is CDSL your demat account number with be a 16 digit number, for instance 1234567891012131.
- If your DP is NSDL, your demat account with contain 2 letters form the alphabet at the beginning, followed by 14 digits for instance IN12345678901112.
As such, if you are confused about how to check demat account number, you should remember this simple above mentioned trick. When you open online demat account, you are also required to complete your KYC compliance. Most investment firms enable you to complete the process online through e-KYC. You simply need to provide a photocopy of your self-attested PAN card as ID proof to complete this formality.
Aarav Badhe is a finance advisor with over 12 years of experience in the investment industry. He loves researching and writing on varied investment topics. In this article, he has given information on online Demat Account. He has given step-by-step guide on opening Demat Account and finding the account number