Demat Account

What is a Demat Account?

A Demat or dematerialized account is a digital platform designed for electronically holding various financial instruments, including company shares and securities like stocks, mutual funds, bonds, and ETFs. The corresponding shares are credited to the Demat account upon purchasing stocks, and when selling, the securities are debited accordingly. Investors can choose between a standalone Demat account or a 3-in-1 account, seamlessly integrating their trading and bank accounts.

Types of Demat Account

Here are various types of Demat accounts designed to cater to the specific needs and preferences of investors:

• Regular Demat Account

  Indian residents widely use this online Demat account to trade equity shares and securities. It requires linkage with a trading account for advanced activities like Futures and Options. An associated annual maintenance charge (AMC) varies among service providers. SEBI introduced the Basic Services Demat Account (BSDA) to accommodate smaller investors, which minimizes or eliminates the AMC based on the investment size, making it more cost-effective for individuals with limited holdings.

• BSDA - Basic Service Demat Account

  The Basic Services Demat Account (BSDA) is tailored for small investors, featuring concessions like reduced maintenance charges, particularly beneficial when the value of securities in the account does not exceed ₹2 lakhs. Ideal for those with a smaller investment portfolio or new to investing, the BSDA is a cost-effective and accessible option.

• Repatriable Demat Account

  Crafted for Non-Resident Indian (NRI) investors, the Repatriable Demat Account allows participation in the Indian stock market and facilitates the transfer of funds outside India. Linked with an NRE (Non-Resident External) account, it offers flexibility and enables NRI investors to repatriate up to one million US dollars annually.

• Non-repatriable Demat Account

  Like the repatriable account, the Non-repatriable Demat Account is designed for NRIs but does not permit fund transfers outside India. Linked to an NRO (Non-Resident Ordinary) account, it allows NRIs to invest in the Indian stock market, benefiting from economic growth while keeping funds within the Indian financial system.

How to open a Demat Account?

The Demat account opening process can be streamlined into four simple steps using the user-friendly 5paisa app:

• Download the 5paisa app

  Head to the Apple Store or Google Play Store to download the 5paisa app, providing a convenient gateway to the free Demat account opening process.

• Select 'Open Demat Account' Option

  Choose the 'Open Demat Account' option within the app to initiate the account opening procedure.

• Guidance from 5paisa Executives

  Once you've selected the option, dedicated 5paisa executives will promptly contact you. They will guide you through the Demat account opening process, ensuring a smooth and hassle-free experience.

• Submit Documents and Verify KYC

  Following the guidance, submit the required documents as specified by 5paisa and complete the KYC (Know Your Customer) verification process. This step finalizes the free Demat account opening process, preparing you to engage in seamless electronic trading of various financial instruments.

Documents Required to open Demat account

For a free Demat account opening online, you'll need a set of documents, much like those required for a bank account. Here's a breakdown:

• Proof of identity

  Provide a government-issued ID with a photo, like a driving license, passport, voter ID card, or Aadhaar.

• Proof of address

  Submit recent utility bills, passport, Aadhaar card, etc. If needed, your spouse's address proof is also accepted.

• Proof of income

  Mandatory for specific transactions such as derivatives. Include documents like proof of salary, recent income tax returns, and bank account statements if required.

• Proof of bank account

  This is a must. Submit a canceled cheque or recent bank statement to the depository participant handling your account.

• PAN card

  Attach your permanent account number to other documents. This helps the income tax department monitor potential tax evasions.

• Photographs

  Depending on your broker, you might need 1-3 recent photographs.

• Additional documents for specific entities

  If you're opening the account as a company, NRI, or Hindu Undivided Family, extra documents are necessary to prove your status and eligibility.

Why open Demat Account with 5paisa?

Here are the main reasons to open Demat account online with 5paisa, ensuring a seamless and efficient investment experience:

• Zero Brokerage Fee

  Benefit from the freedom of trading with a 0% brokerage fee, making 5paisa an incredibly cost-effective choice for your investment endeavors.

• Intuitive Interface

  Navigate the intricacies of financial markets effortlessly with 5paisa's intuitive and user-friendly interface, designed to enhance your overall trading experience.

• Swift Onboarding Process

  Experience a speedy onboarding process, allowing you to set up your Demat account seamlessly by utilizing your Aadhaar, eKYC, and PAN details.

• Informed Decision-Making

  Stay informed with real-time updates and news, and filter stocks to make well-informed decisions, positioning yourself ahead in the dynamic realm of investments.

• Effortless Accessibility

  Trade effortlessly with quick and easy accessibility via your mobile number, regardless of whether you use Android, iOS, or web platforms.

• Diverse Investment Opportunities

  Explore digital trading opportunities, including IPOs, stocks, mutual funds, and more, conveniently accessible through your Demat account.