What is a Demat Account?

Just like a bank account that safeguards all your liquid cash, an online Demat Account holds all your financial securities like stocks in safe custody. Demat account is short for a Dematerialized account.

• When you open a Demat Account with any SEBI registered stockbroker and do any transaction such as buying a share, the shares bought are held in the depositories.


• There are two depositories in India NSDL and CDSL. These depositories hold shares in an electronic format, in your Demat Account.


• You can hold equities, mutual funds, bonds, exchange-traded funds (ETFs), and invest in IPOs (Initial Public Offerings) seamlessly in one click through your Demat Account.

What are the types of Demat Account available in India?

• Regular Demat Account: This is for Indian citizens who reside in the country.
  


• Repatriable Demat Account: This type of Demat account is for non-resident Indians (NRIs) who want to transfer money abroad. It needs to be linked to a Non-Resident External (NRE) bank account.
  


• Non-Repatriable Demat Account: This account is also meant for NRIs, but does not allow fund transfers abroad. It has to be linked to a Non-Resident Ordinary (NRO) bank account.
  

What are the benefits of having an Online Demat Account?

Here are some advantages of having a Demat account.

• Completely paperless


• Works in real-time


• You can buy, sell, hold securities and track your position 24*7


• Helps you to hold various kinds of securities


• Reduced the risks of storing, theft, damage, and malpractices by storing securities in electronic format

What are the charges of a Demat Account?

While traditional stockbrokers generally charge a fee, modern stock broking platform like Dhan allow you to open a Demat account for FREE! This can help you save money that would otherwise be spent on accounting opening and annual maintenance. At the same time, Dhan gives you access to modern & lightning-fast stock investing & trading experience.At the same time here are different types of charges in online trading that you must know.

How many Demat Accounts can you have?

Contrary to popular belief, stock investors can have multiple Demat accounts in India. There is no rule or mandate by SEBI that says otherwise. That said, you must know that you can open only one Demat and Trading account per stockbroker.

What are the documents required for Demat Account opening in India?

Here are the documents you have to furnish if you want to open a Demat account in India:

• Identity Proof: PAN Card (mandatory)


• Address Proof: Aadhar Card, Driving License, Voter ID, etc


• Income Proof: Bank statement for the last 6 months, salary slips, etc


• Bank Proof: Passbook, canceled cheques, bank statements


• Signature: On a clearly visible piece of white paper


• Photograph: A passport-size photograph

How to transfer shares from one Demat account to another?

Transferring shares from one Demat account to another is possible in India. In fact, you can make use of this feature online to transfer shares between or across depository participants (CSDL & NSDL).

What is the difference between Demat and Trading Account?

Demat account opening is done to store shares in the dematerialized format. This is known as taking delivery of shares. In trading, you may not take delivery of shares. That's why traders open trading accounts online to gain access to an interface that allows them to buy and sell stocks. Here is the exact difference between Demat and Trading account that you must know.

How NRIs can open a Demat Account in India?

NRIs can open Demat accounts in India that are of two types:

• Repatriable Demat Account: This allows NRIs to transfer money abroad and hold securities. It has to be linked to a Non-Resident External (NRE) bank account.
  


• Non-Repatriable Demat Account: This account does not allow NRIs to transfer funds abroad but they can hold securities in it.
  


• Non-Repatriable Demat Account: This account is also meant for NRIs but does not allow fund transfers abroad. It has to be linked to a Non-Resident Ordinary (NRO) bank account.
  

Reasons to choose a Dhan Demat Account?

By opening a Free Demat Account with Dhan, you get access to industry first features and multi device / platform support.

• Dhan App on Play Store


• Dhan App on iOS


• Options Trader App by Dhan


• Dhan Web


• Trade on TradingView Charts


• Trading APIs by DhanHQ


• smallcases On Dhan

Detailed Steps on How to Open Demat Account on Dhan?

• Step 1: Enter your mobile number


• Step 2: Enter OTP


• Step 3: Set a password (6 characters, 1 Alphabet & 1 Number)


• Step 4: Enter your email


• Step 5: Enter OTP

• Step 6: Enter your PIN


• Step 7: Upload your PAN card photo


• Step 8: Upload your live selfie


• Step 9: Upload your signature


• Step 10: Choose your annual income, profession and trading experience

• Step 11: Upload your income proof


• Step 12: Enter your IFSC code and bank account number (Make sure its savings account only)

All your documents are now submitted to our KYC team for verification. Once the KYC is completed you will receive a notification "KYC completed"

• Step 13: Please e-sign now


• Step 14: Login to your application (Verify details in account opening form)

• Step 15: Enter your 12-digit Aadhaar number


• Step 16: Enter OTP

Your e-sign verification is completed. Upon confirming all the above steps, your Demat account is now active.