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This is why you need a Demat Account!

Gone are the days when you held a physical share certificate after buying a company’s stock. Today, shares are held in electronic format in a Demat Account. This is why a Demat Account is your ultimate tool when it comes to holding shares and securities easily and securely without worrying about all the paperwork.

Here’s why you REALLY need a Demat Account!

1.   You cannot buy or sell stocks without a Demat Account

2.   You cannot invest in equities directly without it

3.  . Mandated by SEBI for transactions of listed company securities

How to open demat account ?

Opening a Demat Account can be very simple, and it requires minimal paperwork. Here’s how you can open a demat account

To open a Demat Account, follow the simple steps below:

Step 1: Fill the account opening form

Step 2: Submit documents

Step 3: Finish the in-person verification (IPV)

Step 4: Get an account number/ID

You could also opt for a digital Demat Account opening process where the entire application is online.
It’s easy-peasy…

1. Verify Mobile Number

2. Add PAN, Bank and Personal details

3. Click a selfie

4. Complete eSign

5. Chill and #GiveNoBucks with our Trade Free Youth plan

The only difference is that it all happens through digital channels!

Just give us your name, phone number, and email address. We’ll get you started in minutes!

What are the Benefits of Demat Account?

One of the biggest benefits of Demat Account for investors is that it is digital. Having said that, there are many other advantages of Demat Account that can be listed as follows.

1. Security of shares: A key benefit of Demat Account is that it is safer than holding physical shares which can get lost, damaged, or stolen

2.No forgery or theft Since the Demat Account is electronic in nature, the risk of documents getting stolen, damaged, or lost does not exist.

3.Seamless trading and transfer Unlike transporting physical certificates, Demat Accounts allow the transfer of shares quickly and securely. This reduces order processing times.

4.Lower cost Physical share certificates attract paperwork and stamp duty, which increases costs. With a Demat Account, all this is eradicated and you can get a Demat Account in no time.

5.Multiple access points A Demat Account is operated electronically, which essentially means that users can access the account from multiple touch points—mobile, tablet, PC, laptop, etc.

These are just some of the benefits of demat account and its uses. Read the full list of advantages

Here’s another benefit of Demat Account—one that you can get only with Kotak Securities.

With a 3-in-1 account, your trades can get more seamless since your bank and trading accounts are linked with the Demat Account! Know more here

What is a Demat Account ?

A Demat Account—short for dematerialised account—is an account that allows you to hold company shares and securities electronically.

You can hold dematerialised securities such as stocks, mutual funds, bonds, exchange-traded funds (ETFs), etc. in a Demat Account.

So, when you place an order to buy a stock, the shares get credited to your Demat Account. Similarly, when you choose to sell your shares, they get debited from your Demat Account.

You can choose to open just a demat account or a 3-in-1 account that links your trading and bank accounts too. You Know more about these here >>.

This enables you to trade without the need to move physical share certificates. Not only is it a storehouse for your investments, but it also speeds up transactions and reduces costs. Of course, there are more benefits of Demat Account too. Let’s read that next…

Things to Remember While Opening a Demat Account

While opening a Demat Account, check out the following aspects:

  • Trust and Legacy
  • Open a Demat Account with a broker that has a robust clientele and a national presence. Trust and legacy go a long way in ensuring you receive the best service possible. It is good to have a Demat and Trading account with the same broker.

  • Robustness of the Technology Platform
  • Make sure your broker has a robust technology platform that ensures all your Demat process happens smoothly. Equally essential is to check the safety features integrated to prevent falling prey to fraud.

  • Demat Charges Involved
  • Open a Demat Account with a broker that offers competitive charges. High charges can eat into profits in the long run.

  • Level of Customer Service
  • While opening a Demat Account, check the quality of customer service. Make sure your broker is accessible through all modes of communication and is prompt in responding to your queries. Read reviews online to get a clear picture.

What is Dematerialisation?

Dematerialisation is the process through which physical securities are converted into an electronic format and held in the Demat Account. These securities could be in the form of Government bonds, shares, mutual fund units, etc.

Why Open a Demat Account with Kotak Securities

Kotak Securities Demat Account comes with new-age trading plans for all with ZERO account opening fees.

Our Trade Free Youth plan is for investors under 30 years of age and offers you trading with ZERO brokerage charges across all segments. Here’s a look:

Trading Charges

Intraday 0
Carry Forward F&O 0
Cash Delivery 0
Subscription Fee 0
Account Opening Fees 0

Take me to the Trade Free Youth plan >>

Here’s why you should open an account with us:

Want to know more?

Our representatives are just one call away for a speedy and convenient account opening process. Connect here >>

Documents Required for Demat Account Opening

The documents required for demat account opening are account opening form, identity and address proofs, and a passport-sized photograph.

  • Proof of identity (Aadhaar Card/Passport/
    Driver’s License)

  • Proof of address (Ration card/Passport / Rent Agreement / Recent Electricity or Telephone Bills)

  • Income proof (Income Tax Return/Salary Slip)

  • PAN Card

  • Photographs

You’ll get the full list of documents accepted for your Demat account opening by clicking here >>

Get help from our customer care representative within 3 minutes! Just fill in your details and we’ll call you. Click here to know more >>

You can also check out the following short videos to understand Demat Account better..

Understand the Use of Demat Account and Dematerialization of Shares by Kotak Securities

Why Demat Account?
  • Mandatory by SEBI
  • Easy Portfolio Management
  • Security of Equity Investments.
Reach Us
Difference between Demat & Trading Account

Read More >

Demat Account Fees and Charges

Sr Account Head Rate Minimum Payable
1 Dematerialisation ₹50/- per request and ₹3/- per Certificate -
2 Rematerialisation ₹10/- for 100 securities (shares, bonds, mutual fund units etc) ₹15/-
3 Market / Off-Market Transactions (Sell) 0.04% of the value of securities
(Plus NSDL Charges)
(Plus NSDL charges as applicable)
4 Regular Account Maintenance Charges • Holding value of securities < = ₹10,000 : No AMC (basis maximum value during the month)
• Holding value of securities > ₹10,000 Resident
₹65 p.m. for upto 10 debit transactions
₹50 p.m. for 11 to 30 debit transactions
₹35 p.m. for more than 30 debit transactions
NRI - ₹75 p.m.
BSDA AMC As per SEBI (Refer Note below)
5 Pledge Charges 0.05% of the value of securities ₹30/-
6 Invocations of Pledge 0.04% of the value of securities ₹30/-
7 Pledge Charges (For margin purpose)
a. Request
b. Invocation
c. Release (Un-pledge)
d. Re-Pledge

₹20 per ISIN
₹20 per ISIN
₹20 per ISIN

8 DIS Re - Issuance
₹99/- per DIS Booklet
9 Charges for CAS NSDL charges (Refer Note below) -


  • There are no charges payable at the time of opening the account. All other charges will be billed on a monthly basis.
  • In case of delays in the payment of charges, the demat account can be frozen for all operations till such time all dues are cleared.
  • All market instructions for transfer must be received latest by 4.00 p.m. on the previous working day, prior to the pay-in day as per SEBI Guidelines. All off market instructions for transfer must be received at least 24 hours before the execution date. Late instructions would be accepted at the account holder’s sole risk and responsibility.
  • Charges are subject to revision at the company’s sole discretion subject to prior intimation to the clients or on revision in Depository charges.
  • Any service not quoted above will be charged separately.
  • Value of transaction will be in accordance with rates provided by the Depository or actual transaction value, whichever is higher.
  • STT, GST and all other applicable statutory taxes will be charged as per current applicable rate.
  • In accordance with the SEBI circulars (Ref # SEBI Circular No. CIR/MRD/DP/22/2012 dated August 27, 2012 and SEBI Circular No. CIR/ MRD/DP/20/2015 dated December 11, 2015), DP’s were advised to convert all such eligible demat accounts into BSDA unless such Beneficial Owners (BOs) specifically opt to continue to avail the facility of a regular demat account. For availing BSDA facility, the individual shall have only one BSDA in his/her name across all depositories. In case the BSDA account holder converts such account into Non-BSDA (regular account) account or the account holder ceases to meet the eligibility criteria for BSDA account, the charges applicable to Non-BSDA (regular account) shall be levied.
  • For BSDA account holder, (for other than Debt securities) the Account Maintenance Charges (AMC) structure shall be on a slab basis; if the value of holdings
    (a) Upto ₹50,000 there will be NIL AMC and (b) For Value of holding from ₹ 50,001 to ₹ 2,00,000 AMC will be upto ₹100 per annum.
  • For BSDA account holder (for Debt securities), the Account Maintenance Charges (AMC) structure shall be on a slab basis; if the value of holdings
    (a) Upto ₹1,00,000 there will be NIL AMC and (b) For Value of holding from ₹1,00,001 to ₹2,00,000 AMC will be upto 100 per annum.
  • As per NSDL’s circular dated August 30, 2013, NSDL will levy ₹500/- as Annual Maintenance Charges for Corporate Accounts, effective 1st October, 2013.
    NSDL Charges would be levied to the respective account as regulatory charge and will be in addition to the DP charges levied by Kotak Securities Limited as per the schedule of charges.
  • For CAS ₹0.75/- per transacted BO demat account for email CAS, ₹8/- per transacted BO demat account for physical CAS

More about demat account

Want to know more about a demat account? We’ve tried to offer all the information possible. Read more below:

1. All you need to know about demat accounts: Here is your cheat-sheet for demat account benefits, advantages, features and procedures.

2. How to use a demat account: Learn about all the different uses of a demat account.

3. How to transfer shares from one demat account to another? Want to switch demat accounts? Read how you can transfer shares between them.

4. Brokerage charges for demat account: Read how you can get the lowest brokerage charges.

5. Collateral amount for demat account: Out of funds to trade? Read about pledging your securities as margin.

6. Is a demat account required to invest in mutual funds? Read how you can invest in Mutual Funds through other modes.

7. NSDL has issued circular informing about CBDT notification on Format, Procedure and Guidelines for submission of Statement of Financial Transactions (SFT) for Depository Transactions. Please be guided by the same for your information.

8. Dos and Don’ts and best practices to be followed for CDSL demat account holders. Link to circular

9. Dos and Don’t for NSDL investors / demat account holders. Link to circular

10. Disclosure of Investor Charter for Depositories and DP Link to circular

+ Expand AllFrequently asked questions (FAQs)s

  • QHow does a demat account work?

    Demat account is a facility that allows investors to hold shares in an electronic format. The full form of demat account is dematerialised account.

    A demat account functions like a bank account for shares. In a bank account, you do not hold cash physically. Your bank balance appears as a mere entry in your bank statement. The same way, in a demat account, you hold shares in a dematerialised or electronic form for better accessibility. These shares are debited or credited from the demat account when you trade. Know more about demat account here.

  • QWhat are the types of demat account?

    There are three types of demat accounts for different investors:

    • 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 an 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 an Non-Resident Ordinary (NRO) bank account.
    Explore the different types of demat accounts here.

  • QCan I open a demat account without opening a trading account?

    For the purpose of investing, one needs to have a demat account and a trading account. A demat account is a close cousin of the trading account, without which the demat account is merely a storehouse for securities in digital form. Through a trading account, you can invest in stocks, IPOs, bonds, etc., and hold them all in a demat account. Know the difference between a trading and demat account in more detail.

    There can be many advantages to opening a demat and trading account together.Know more!

  • QIs the demat account part of a 3-in-1 account?

    Yes, the demat account is a part of the 3-in-1 account which includes a bank account with Kotak Mahindra Bank and a trading and demat account with Kotak Securities. The 3-in-1 account gives you ‘direct access’. So you don’t have to manually transfer money from your savings to your trading account in order to trade online. Explore the perks of opening Kotak’s 3-in-1 account!

  • QIs it necessary to link a trading account to a demat account?

    No, it is not necessary to link a trading account to a demat account. You can hold one or more demat accounts that are not linked to a trading account.

    However, linking a demat account with your trading account is essential to trade in the cash market. For example, to buy shares, you will need to place the order and dispense funds from the trading account. Once the order is processed, the shares will appear in your demat account. Some brokers offer both demat and trading accounts together for a seamless trading experience.

  • QCan I link my new trading account with a demat account?

    Yes, you can link your new trading account with a demat account. It is also possible to link multiple demat accounts with a single trading account.

    Linking the accounts is mandatory if you trade in the cash segment. For example, to buy shares, you will need to place the order and dispense funds from the trading account. Once the order is processed, the shares will appear in your demat account.

    In general, it is recommended to link your trading and demat accounts. That way you need not provide your demat account details for every transaction. Once an order is processed, the shares will be either deposited in or debited from the linked demat account. Know more about using a trading and demat account here.

  • QWhat are the charges of a demat account?

    The charges of a demat account are: safety charges (custodian fee), annual maintenance charges, and transaction charges. Know more about the competitive brokerage charges of Kotak Securities here.

  • QCan I open a demat account for free? Are there any other charges?

    Yes, you can open a demat account for free. However, there might be other charges applicable once the account is opened. These could be: safety charges (custodian fee), annual maintenance charges, and transaction charges. Know how to choose the best demat account for you here. Explore the competitive brokerage charges of Kotak Securities demat account.

  • QCan I have multiple demat accounts?

    Yes, it is perfectly okay to have multiple demat accounts. The only condition is that you cannot have multiple demat accounts with the same broker or depository participant. Know all you need to about demat account features, advantages, and uses.

  • QWho can open a demat account in India?

    A demat account can be opened by anyone with valid documents. This includes resident Indians, minors (through guardians), non-resident Indians, foreign nationals, and firms. However, the process and conditions might be different in each case.

  • QHow long does it take to open demat account?

    It takes a few days to open a demat account. The steps involved include submitting the account opening form with the required documents and completing the in-person verification. Our representatives are here to help! Sign up here for an instant call to open a demat account.

  • QWhich are the most important features of a demat account?

    The key features of a demat account are: easy access to holdings, easy dematerialisation of securities, ease of receiving dividends, easy share transfers, liquidity of shares, and availability of loans against securities. Know about more advantages and features of a demat account here.

  • QWhat will happen after I submit my application?

    After you submit your application to open a demat account, you will be requested to complete an in-person verification by a representative of the depository participant. Your personal details will be collected and the documents verified against the originals. Your account number will be issued after the verification. Know about the demat account opening process in depth here.

  • QHow can I use a demat account?

    A demat account is an online platform that stores your securities in electronic form. Once you link your demat account with a trading account, you can buy and sell securities online.
    To use a demat account, you will need the account number or client ID, along with a password. Since the account acts as a storehouse for all your securities, you can monitor your holdings by logging in to the account. You can also get a statement of your entire portfolio through the demat account. Know about the extensive uses of a demat account here

  • QWhat next after I log in to my demat account?

    After you login to your demat account, you can view all security holdings and access your portfolio statement. You could also check on the status of recent transactions based on securities deposited in or debited from your account. Know how to trade online using trading and demat accounts.

  • QCan you open a demat account jointly?

    Yes, you can open a demat account jointly with a maximum of three account holders. To open a joint demat account, during the form filling process, ensure that the type of demat account selected is ‘joint’. Even in the case of a joint account, communications regarding the account will be provided to the first holder only. So the correspondence address on the demat form will have to be that of the first holder. The KYC documents along with supporting paperwork will have to be provided for all the joint holders while opening the account.

  • QCan I transfer shares from my demat account?

    You can transfer shares from one demat account to another. You will need to fill the delivery instruction slip (DIS) and submit it to your depository participant (DP) to start transferring shares. If both the DPs involved in the transfer are not associated with the same central depository (CDSL or NSDL), you will need an INTER-Depository Instruction Slip (Inter DIS). If they are, you will need an INTRA Depository Instruction Slip (Intra DIS). Read about the process in more detail here.

  • QIs a demat account compulsory to invest in an IPO?

    Yes, a demat account is compulsory to invest in an IPO as per SEBI guidelines.

  • QDo I need a demat account to start an SIP in Mutual Funds?

    You do not need a demat account to invest in mutual funds. Whether to open a demat account depends on the investor’s requirement and understanding of the product. A demat account is compulsory to trade in equity shares, but owing to the associated benefits of the demat account, depository participants have started offering access to mutual funds through the demat account.
    - Upon logging in to the demat account, you will see consolidated reports of all your investments in just a few clicks. Once you have bought mutual fund units, you can also sell them and invest in new funds without having to visit any office.
    - Alternatively, mutual funds can be bought directly from fund house websites, independent portals, mutual fund advisors, banks, and transfer agents. Know how to track, purchase, and redeem your mutual funds online with Kotak Securities.

  • QCan a Non-Resident Indian open a demat account in India?

    Yes, a non-resident Indian (NRI) can open a demat account in India. In the case of an NRI, there are two accounts to choose from based on the objective of using the generated funds.
    - Repatriable Demat Account: This type of demat account is for 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 it does not allow fund transfers abroad. It has to be linked to a Non-Resident Ordinary (NRO) bank account.
    - Explore the different types of demat accounts here. .

  • QCan I nominate someone for my demat account? If yes, who all?

    Yes, nomination can be made by individuals holding single or joint demat accounts. The nominee needs to complete a few formalities with the depository participant and get the securities transferred into their account in case the account holder dies. You will be asked to choose a nominee while opening the account. Only an individual can be appointed as a nominee. Non-individual entities such as a trust, corporate body, Hindu United Family (HUF), Association of Persons (AOP), etc. cannot be appointed as nominees. Your nominee could be your legal heirs, dependents, family members, or others.

  • QWhat do you mean by dematerialisation?

    Dematerialisation is the process of converting physical shares into electronic format. An investor who wants to dematerialise his shares needs to open a demat account with a Depository Participant. Investor surrenders his physical shares and in turn gets electronic shares in his demat account.

    To dematerialise physical share certificates, you must take note of the ownership pattern. For example, if the shares are held jointly, you may need to open a joint demat account to dematerialise them.

  • QWho is depository participant?

    A depository participant (DP) is an agent of the depository. A DP is an intermediary between the depository and the investors. A DP can be a bank, financial institution, brokerage house, or similar entity. When investors transfer shares, the respective DP debits or credits the demat accounts.

  • QWhat is a central depository?

    A central securities depository (CSD) is a specialist financial organisation. It holds securities such as shares in certificated or uncertificated (dematerialised) form. The latter enables ownership to be transferred easily through a book entry rather than the transfer of physical certificates. There are two CSDs in India currently: Central Depository Services (India) Ltd (CDSL) and National Securities Depository Limited (NSDL).

  • QHow are shares held in a demat account?

    Shares are held in a demat account in such a way that they can be registered and transferred electronically. Through dematerialisation, the demat account allows for electronic transactions when shares are bought and sold. The electronic certificates for stocks and other securities are held in a dematerialised form for seamless trade.

  • QWhat is a demat account identification number?

    A DP ID is a number allocated to the depository participant, whether a broking firm, bank, or other financial institution, by the CDSL and NSDL. Usually, the first eight digits of your Demat account number represent your DP ID and the last eight digits are your customer ID.

Have more questions? Click here to find answers.

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