There was a time when a lot of people used to say, “stock market investment is not my cup of tea”. This was because the entire procedure of acquiring share certificates and keeping it safely was a tiresome task. Well, the time has changed, and for the better!

The concept of “Dematerialisation” was introduced in 1996 by the NSDL (National Securities Depository Limited). This marked a revolutionary step that changed the face of stock market investments completely. Dematerialisation means converting physical shares and security certificates into electronic form. Demat Accounts are used for this purpose which makes the process simple and hassle-free.

Find out how to open a Demat Account online

Financial institutes or banks that provide the service of Demat Accounts are called “Depository Participants”. These entities work as intermediaries between the investors and the two major depositories. The process of opening the account is also very convenient. For understanding how to open Demat Account online and which are the best options available in India, you should understand these concepts more precisely.

How To Find The Best Demat Account In India?

The purpose of a Demat Account is to convert the physical share certificates into electronic form for a better trading experience. The two major depositories, NSDL and CDSL, work and coordinate with Depository Participants to facilitate the services of Demat Accounts. Every Depository Participant (DP) works individually in the market and offers various facilities apart from the basic one. While looking for how to open a Demat account, one must search for the best Demat account provider. For finding the best Demat Account, one should look out for the following features and services in his preferred DP.

Easy Account Opening And Management

The first step is the account opening process and it should be easy and simple. One should know how to open Demat Account online and what are its management options. Nowadays, the e-KYC (Know Your Customer) process is available, through which one can easily open a Demat Account using the Aadhar card. This allows one to complete the account opening process in a few easy and simple steps. Also, account maintenance options like freezing the account, easy rematerialisation, etc.  must also be evaluated thoroughly to open a Demat account. Find a Depository Participant that offers these facilities.

Economical service and maintenance charges

Every Depository Participant charges certain predefined fees for the services they provide to open a Demat account. The common charges are account opening fee, annual maintenance charge, dematerialisation/rematerialisation costs, redemption fee, postal charges, etc. The cost of these charges varies from one entity to another. Therefore, one should look at the charge sheets of all the available Depository Participants in the Indian market. Charges are an important factor to consider while searching for how to open Demat account.

Features and type of Depository Participant

There are two types of Depository Participants - full-service stockbrokers and discount stockbrokers. The discount stockbrokers are the ones who offer trading services in shares and derivatives segments only. However, the full-service stockbrokers offer many additional facilities like mutual funds and IPOs (Initial Public Offerings). It is important for you, the investor, to make the right choice of DP in order to shape your wealth and assets in the stock market investments when you open a Demat account.

Seamless user interface

The entire trading process in the stock market involves a Demat Account, trading account, and a personal bank account. The renowned DPs offer the facility of mobile applications and online transactions in order to facilitate easy management. The one thing to look into it is whether the interface of these online apps and portals is user-friendly and smooth or not. One would not like to face clutters or bugs while making online transactions.

Customer care and support

This is also an important metric one should choose for selecting the best Demat Account. A Depository Participant that offers good and satisfactory customer service is very important. Things and situations may get out of control anytime in the trading business. Thus, the best DP would be the one who can resolve such issues and queries.

How to open Demat Account online?

Although the Depository Participants work actively in helping the investors to understand the account opening process, one should have prior knowledge of it. It would help in carrying out the task more conveniently. For understanding how to open a Demat Account online, one must know that there are only a few simple steps involved in the process.

• First of all, analyse the market thoroughly to find the right Depository Participant whose services match your requirements and expectations. In India, there are many financial institutions, banking, and non-banking entities and brokers who provide these services. It is advisable for one to make a wise choice.
• After choosing a Depository Participant, visit its website and fill up the online account opening form. If one does not have a trading account, he should also fill-up the form for opening a trading account as well, since it is required in the stock exchange transactions.
• The online account opening process cannot be completed successfully without fulfilling the KYC (Know Your Customer) requirements. It requires one to submit the scanned copies of documents like income proof, identity proof, address proof, colour photo, etc. It is better to collect all these documents and get their scanned copies beforehand to complete the process faster.
• After document submission, one needs to go through the verification process which is conducted by the DP to make sure all the details and documents given are true and valid. The good news is that there are many Depository Participants who offer online IPV (In-Person Verification) services that one can complete by using a webcam or smartphone.
• Lastly, one needs to sign all the required documents and agreement papers for opening the account. These papers include all the terms and conditions laid by the Depository Participant.
• Once all this is done and completed successfully, the DP would proceed with further processing of the online account application. This usually takes 1-2 working days depending upon the service provider. The DP will provide a unique BO ID (Beneficial Owner Identification Number) upon approval of the application.

It is not difficult to find the best Demat Account if one knows what he is looking for and what are the technicalities involved in the process. The benefits of Demat Accounts go beyond the conversion of physical certificates into electronic forms. The important aspect is choosing the right Depository Participant.