Loans
Cards
Insurance
Investment
Stock Market
Electronics Mall
CIBIL Score
Knowledge Centre
Calculators
Do not call
En
Zero annual maintenance charges and no opening fees. Start holding securities electronically with a Demat account.
Opening a Demat account has become a vital first step for anyone looking to invest in securities such as shares, bonds, mutual funds, and ETFs. The process is now fully digital, convenient, and, in many cases — free of cost. Whether you're new to investing or simply want to hold securities in electronic form, understanding the steps to open a Demat account is essential.
This article outlines the detailed process to open a Demat account online for free, including document requirements, verification processes, and key terms to know
A Demat (Dematerialised) account holds your securities in electronic form, making it easier to trade and manage investments. Just like a bank account holds money, a Demat account holds shares and other financial instruments.
In India, Demat accounts are maintained through two central depositories:
NSDL (National Securities Depository Limited)
CDSL (Central Depository Services (India) Limited)
These depositories work with Depository Participants (DPs)—usually banks, brokers, or financial platforms — who facilitate the account opening process and ongoing services.
It's helpful to understand the basic utilities of a Demat account:
Holds all your investments (equities, bonds, ETFs, etc.) in one place
Eliminates physical certificates and paperwork
Enables faster settlement and transfer of securities
Reduces the risk of loss, theft, or damage to document
Understanding key terms related to a Demat account helps investors manage their holdings more efficiently. Here are some essential terms you should know:
Depository: An organisation such as NSDL or CDSL that holds investors’ securities in electronic form.
Depository Participant (DP): A SEBI-registered intermediary, such as a bank or broker, that offers Demat account services to investors.
Beneficial Owner (BO): The actual holder of securities in a Demat account, identified by a unique BO ID.
BO ID (Beneficial Owner Identification Number): A 16-digit number that uniquely identifies your Demat account.
DP ID: The identification number assigned to your DP by the depository.
Client ID: The unique number given to an investor by their DP, used along with DP ID to form the BO ID.
ISIN (International Securities Identification Number): A unique code assigned to each security (like shares or bonds) for identification.
Dematerialisation: The process of converting physical share certificates into electronic format.
Rematerialisation: The process of converting electronic securities back into physical certificates.
Pledging: Using securities held in your Demat account as collateral to secure a loan or margin funding.
Opening a free Demat account online is quick and hassle-free. Follow these steps:
Select a SEBI-registered broker or Depository Participant (DP), such as a bank or financial platform. Ensure it’s registered with NSDL or CDSL and review the service features and applicable charges.
Visit the DP’s website or download their mobile app. Navigate to the ‘Open Demat Account’ section to begin the online application process.
Enter your name, date of birth, PAN, Aadhaar number, mobile number, and email ID accurately. Ensure your details match your official documents to avoid verification issues.
Submit scanned copies of the required documents:
Identity Proof: PAN card (mandatory)
Address Proof: Aadhaar card or driving licence
Bank Proof: Cancelled cheque or recent bank statement
Signature: A clear photo of your signature on white paper
Verify your identity digitally using Aadhaar-based e-KYC. You’ll receive an OTP on your Aadhaar-linked mobile number for instant verification.
As per SEBI guidelines, IPV confirms your identity through a short video where you display your PAN card and signature. Some DPs may ask you to read a code aloud.
Electronically sign your application using Aadhaar e-sign via OTP. This serves as your official consent to open the Demat account.
After successful verification, you’ll receive your Demat account number (BO ID) and client ID via email and SMS. You can now start trading and managing investments online.
Different investors require different types of Demat accounts based on their ownership and structure. Understanding these categories helps you choose the right account for your specific needs.
Below is a quick overview of the various Demat account types and their purposes:
| Account Type | Description |
|---|---|
Designed for investors below 18 years of age. Managed by a guardian until the minor turns adult. |
|
Used by trusts or charitable organisations to hold and manage their investment securities. |
|
Specifically for Hindu Undivided Families, operated under the Karta’s authority for family-held assets. |
|
Created for private companies to manage and trade securities under the firm’s name. |
|
Suitable for Limited Liability Partnerships (LLPs) to hold and transact in securities collectively. |
Choosing the appropriate Demat account type ensures compliance, simplifies ownership management, and allows smooth investment operations tailored to your financial or organisational setup.
Here is the full list of documents generally required:
PAN Card
Aadhaar Card
Cancelled Cheque or Passbook
Recent Bank Statement (optional)
Signature on white paper
Passport-size photograph (optional)
Ensure your mobile number is linked to your Aadhaar for OTP-based verification.
When opening a Demat account, it’s important to understand the different types of charges that may apply. While some platforms offer free Demat account opening, other costs may still be associated with maintenance or transactions.
Here are the main types of Demat account charges you should know:
Account Opening Charges:
Some Depository Participants (DPs) may levy a one-time fee to open your Demat account, though many offer free account opening promotions.
Annual Maintenance Charges (AMC):
A yearly fee charged by the DP to maintain your Demat account. It can be fixed or waived for the first year, depending on the provider.
Transaction Charges:
Applied every time you sell or transfer securities from your Demat account. These are often charged per transaction or per ISIN.
Custodian Fees:
A small charge levied by the depository (NSDL or CDSL) to maintain the electronic records of your securities.
Dematerialisation/Rematerialisation Charges:
Fees applied when converting physical shares into electronic form or vice versa.
Understanding these charges helps investors estimate their total cost of ownership and choose a Demat account that suits their trading frequency, investment goals, and budget preferences.
Before you open a Demat account, keep the following points in mind to make an informed decision:
A Demat account is different from a trading account. You may need both if you intend to buy or sell securities.
Charges such as Annual Maintenance Fees (AMF), transaction fees, and pledge charges may apply. Review the DP’s schedule of charges before proceeding.
Ensure the DP is registered with SEBI and affiliated with NSDL or CDSL.
Ensure your KYC information remains updated to prevent service interruptions.
This content is for informational purposes only and the same should not be construed as investment advice. Bajaj Finserv Direct Limited shall not be liable or responsible for any investment decision that you may take based on this content.
Yes, your bank account details are necessary for linking and fund transfers related to securities transactions.
Yes, you can open multiple Demat accounts with different DPs using the same PAN card.
Yes, Aadhaar is used for identity and address verification during the digital KYC process.
Yes, but the online process is faster, requires less paperwork, and is usually more convenient.
Many DPs offer free account opening. However, check for maintenance and other service-related charges.
If all documents are in order and e-KYC is completed smoothly, the account may be activated on the same day or within 1–2 working days. Some platforms offer instant Demat account opening, subject to automated checks.
No, a PAN card is mandatory for opening a Demat account in India. This is as per SEBI and Income Tax Department guidelines.
A Demat account can be opened online without paying any account opening charges, depending on the service provider’s policies. While some platforms offer free account opening, there may still be associated costs such as annual maintenance charges or transaction fees. It is important to review the applicable charges before proceeding with account opening.
Several financial platforms and broker apps allow users to open a Demat account without an opening fee. However, the features, trading platforms, and maintenance charges vary across providers. Different providers offer varying features, platforms, and charges. Investors may review these differences as cost structures and services differ across platforms.
A Demat account allows electronic storage of shares and securities, making transactions safer and more convenient than holding physical certificates. Features include reduced paperwork, faster settlement of trades, easy transfer of securities, and consolidated portfolio management. Benefits extend to lower risk of loss or damage, simplified record-keeping, and seamless integration with trading platforms for efficient investing.
A Demat account is used to hold securities in electronic form and does not directly allow cash withdrawals. When shares or other securities are sold through a linked trading account, the proceeds are transferred to the associated bank account. To access the funds, the withdrawal must be made from the bank account rather than the Demat account itself.
You need a PAN card, Aadhaar card, bank proof (cancelled cheque or statement), and a signature photo on white paper. These documents are used for identity verification, KYC, and linking your bank account.
Opening a Demat account online usually takes a few minutes to a few hours once e-KYC and document verification are complete. In some cases, full activation may take up to one working day.
The minimum age to open a Demat account is 18 years. However, minor Demat accounts can be opened by a guardian on behalf of individuals below 18 years until they reach adulthood.
Once your account is approved, your Beneficial Owner Identification (BO ID) is sent via email and SMS by the Depository Participant (DP). It uniquely identifies your Demat account with NSDL or CDSL.
Yes, a Demat account can be opened jointly by up to three holders—a primary holder and two joint holders. All applicants must complete KYC verification and provide valid identity and address proofs.
Personal Loan, Business Loan, Collateral
Fixed Deposit, Mutual Fund, NPS, Demat A/C, SGB
General Insurance, Life Insurance, Term Insurance
Stocks, IPOs
Credit Score, Report & Analysis
Smart Phone, Speaker, EarPhone
Academy 
