What is a Demat Account & how to open it?

In Today’s world, everyone is interested in investing in the stock market. For investing or earning money from the share market, there is a requirement to open the Demat Account. In the last years, the opening of Demat accounts has risen and reached 7.38 crore. We will introduce you to the true meaning of the Demat account. If you want to open the Demat account, show interest in this article. Let us provides you with information on the Demat account.

What is a Demat Account?

A Demat account is the medium of accounts. You can easily hold the stock market shares, government securities, bonds, mutual funds units, exchanges, trade funds, and other securities IPOs (initial public offerings). A Demat account is responsible for assuring the securities of investments made by the traders and provides the facilities of handling and maintaining the shares in the stock market.

Documents and another requirement for opening the Demat account?

Before telling you about the procedure to open the Demat account, we would like to tell you the documents requirements during this process.

  • The decision from depository participants such as an authorized bank, broker, or financial institution must be with you if you want to open the Demat account.
  • The decision of depository participants is based upon the brokerage charges, leverage, and other annual charges.
  • You have to submit the account application form and KYC form.
  • Along with the application form of a Demat account, you have to submit documents such as a PAN card, residency proof, Identity proof, and 2-3 passports size photos.
  • You must have handy all the original copies of your documents before the verification process.

After this, you have to make your signatures on the agreement under all rules and regulations associated with the application form while opening a Demat account. It is recommended to clear your doubts while filling out the application form.

A way to open the new Demat account

You have to first take the request from DP to open the Demat account. It is easier to open a Demat account online while sitting comfortably at home. You can easily open the Demat account in a few clicks. The procedure to open the Demat account is:

  • First, visit the DP website chosen by you
  • Click on the option of opening a Demat account
  • Then submit the required details such as name, email, mobile number, OTP, and city name.
  • You will get the communication from the DP on your given contact number and then open the Demat account.


In this article, you got an idea about the Demat account and how to open the Demat account. Also, we told you about the required documents that are necessary while opening the Demat account.

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