Steps to Open a Free Demat Account Online

Learn how to open a free Demat account online in India, including eligibility, required documents, and step-by-step instructions.

 

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 good news is that 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 page outlines the detailed process to open a Demat account online 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 documents

Opening a free Demat account online involves a few clear and structured steps. Here’s a detailed breakdown:

1. Choose a Depository Participant (DP)

Start by selecting a SEBI-registered DP. This could be a bank, stockbroker, or financial marketplace like Bajaj Markets that facilitates Demat and trading account services.

 

Look for key parameters such as account maintenance charges, ease of access, and platform interface. Ensure the DP is affiliated with either NSDL or CDSL.

2. Visit the DP's Website or App

Once you've chosen a DP, visit their official website or download their app. Navigate to the ‘Open Demat Account’ section.

 

Click on the online application link to begin your e-KYC (Know Your Customer) verification.

3. Fill Out the Online Application Form

Enter basic personal and contact details such as:

• Full name

• Date of birth

• Mobile number

• Email ID

• PAN card number

• Aadhaar number

   

Ensure all details match your official documents to avoid delays in the verification process.

4. Submit Required Documents

The online form will prompt you to upload scanned copies or photos of the following documents:

Make sure the images are clear, legible, and match your official details.

5. Complete e-KYC Verification

This step verifies your identity digitally using Aadhaar-based authentication. The verification is typically carried out via:

• OTP sent to your Aadhaar-linked mobile number, or

• Digilocker authentication (if supported by the DP)

   

e-KYC helps in eliminating physical paperwork and speeds up the process.

6. In-Person Verification (IPV)

As per SEBI regulations, IPV is mandatory. DPs usually offer a video-based IPV process where you are asked to:

• Record a short video showing your face

• Display your PAN card and signature during the recording

   

Some DPs may ask you to read out a unique code or sentence to confirm your presence.

7. E-Sign the Application

You’ll be asked to e-sign the filled application form using Aadhaar e-sign (via OTP). This step confirms your consent to open the account and accept terms.

Once the e-sign is done, your application is submitted for processing.

8. Wait for Application Approval

After submission, your application and documents go through a backend verification process. This typically takes a few hours to 1 working day.

 

Once verified, you will receive:

• Demat account number (Beneficiary Owner ID)

• Client ID

• Login credentials for account access

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.

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.

• Keep your KYC information up to date to avoid service disruptions.

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.