This is why you need a Demat Account!
Today, you hold your shares in electronic format in a demat account. Gone are the days when you held a physical share certificate after buying a company’s stocks.
This is why a demat account is your ultimate tool when it comes to holding shares and securities easily and securely without worrying about paperwork.
Here is why you REALLY need a demat account!
1. You cannot buy or sell stocks without a demat account
2. You cannot invest in equity directly without it
3. Mandated by SEBI for transactions of listed company securities
What is 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. 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.
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: The most important 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 has lowered 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 and different uses of a demat account.
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.
How to open a 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 where the entire application process is online. The steps are similar: Fill in the application form, upload scanned copies of your documents, and complete the IPV. 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!
Why open a demat account with Kotak Securities
- One account that links your Trading, Savings and Demat accounts
- Get in-depth analysis and stock recommendations from award-winning analysts
- Complete your trades in minutes through our high-tech trading platforms
- Enjoy Trade Free Plan
- Get real-time market analysis and strategies on TradeSmart
- Invest in a theme-based basket of stocks through smallcase
Our representatives are just one call away for a speedy and convenient account opening process. Just keep the following documents ready.
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.
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Proof of identity (Aadhaar Card/Passport/
Driver’s License) -
Proof of address (Ration card/Passport / Rent Agreement / Recent Electricity or Telephone Bills)
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Income proof (Income Tax Return/Salary Slip)
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PAN Card
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Photographs
You’ll get the full list of documents accepted for account opening here.
Get help from our customer care representative within 3 minutes. Just fill in your details and we’ll call you.
- Mandatory by SEBI
- Easy Portfolio Management
- Security of Equity Investments.
Read More >Demat account fees and charges
The charges for a demat account include maintenance, dematerialisation, and transactional charges.
| 1 | Dematerialisation | Rs 50 per request and Rs 3 per certificate |
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| 2 | Rematerialisation | Rs 10 for 100 securities (shares, bonds, mutual funds units, etc.) | Rs 15 |
| 3 | Regular (Non- BSDA Account ) (For Individual Accounts only) Market/off-market Transactions(Sell) BSDA Account (For Individual Accounts only) Market/Off-market Transactions(Sell) |
0.04% of the value of securities(plus NSDL Charges) 0.06% of the value of securities(plus NSDL charges) |
Rs. 27(plus NSDL charges) Rs. 44.50(plus NSDL charges) |
| 4 | Regular Account Maintenance Charges | RESIDENT: Rs 65 per month for up to 10 debit transactions Rs 50 per month for 11 to 30 debit transactions Rs 35 per month for more than 30 debit transactions NRI: Rs 75 per month |
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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.
+ Expand AllFrequently asked questions (FAQs)s
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QHow does a demat account work?A
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.
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QWhat are the types of demat account?A
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.
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QCan I open a demat account without opening a trading account?A
Yes, you can open a trading account without opening a demat account. But this is an option only if you don’t want to take delivery of stocks. In case you want to hold stocks for any period of time, a demat account is required. (This was a rich snippet for this search)
Alternate
Yes, you can open a demat account without opening a trading account to just hold your dematerialised securities. However, to buy or sell securities, you will need to open a trading account. (Altered to fit the question)
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!
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QIs the demat account part of a 3-in-1 account?A
A 3-in-1 account includes a savings account from a bank, a demat account, and a trading account to buy and sell securities. All the accounts are jointly opened by a broker.
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!
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QIs it necessary to link a trading account to a demat account?A
No, it is not necessary to link a trading account to a demat account. However, such linking is essential if you trade in the cash segment. If you do not link the two accounts, the securities traded will not be debited from or credited to your 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.
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QCan I link my new trading account with a demat account?A
Yes, you can link your existing demat account with a new trading account. You can also link multiple demat accounts with a trading account. However, such linking is mandatory only if you trade in the cash segment.
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.
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QWhat are the charges of a demat account?A
Usually, there are no maintenance charges for a basic demat account with a balance of up to Rs 50,000. Those with holdings worth Rs 50,001 to Rs 2 lakh would have to pay anywhere between Rs 100 and Rs 750, depending on the number of transactions made.
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.
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QCan I open a demat account for free? Are there any other charges?A
Yes, you can open a free demat account with an investment broker or stockbroker.
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.
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QCan I have multiple demat accounts?A
Yes, you can have multiple demat accounts with different brokers. But you cannot open two demat accounts with the same broker.
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.
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QWho can open a demat account in India?A
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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.
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QHow long does it take to open demat account?A
Usually, it takes about a week or two to open a demat account. However, the period may extend to 15–20 days if the processing time is longer.
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.
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QWhich are the most important features of a demat account?A
The features of a demat account are lower risk of theft and forgery, easy holding of securities, purchase in odd lots, reduced costs and reduced time.
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.
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QWhat will happen after I submit my application?A
While opening an account, in addition to filling up the application forms and submitting the documents, you will need to sign on the agreement papers and provide a 'specific' power of attorney (PoA) to the broker.
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.
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QHow can I use a demat account?A
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.
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?A
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.
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QCan you open a demat account jointly?A
There is no restriction on the number of demat accounts which an investor can open. A demat account can be opened in the name of a single holder or joint holders.
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.
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QCan I transfer shares from my demat account?A
To transfer through the online method, you would need to do an easy one-time registration and submit the application to your depository participant. After that, you can transfer shares on your own in future.
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.
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QIs a demat account compulsory to invest in an IPO?A
Yes, a demat account is compulsory to invest in an IPO as per SEBI guidelines.
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QDo I need a demat account to start an SIP in Mutual Funds?A
A demat account is mandatory for trading in the stock market. It is not required for mutual fund investments of any kind including systematic investment plans (SIPs). For mutual funds, the mandatory requirement is completing the Know Your Customer (KYC) formalities.
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?A
In India, both residents and non-residents can make use of the demat account to trade in shares. However, if a non-resident Indian (NRI) wants to open a demat account, they have to follow the rules of the Foreign Exchange Management Act (FEMA).
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?A
Yes. A nomination can be made for a joint demat account as well. But only one nominee can be appointed for all the holders of the demat account.
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.
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QWhat do you mean by dematerialisation?A
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.
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QWho is depository participant?A
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.
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QWhat is a central depository?A
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).
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QHow are shares held in a demat account?A
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.
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QWhat is a demat account identification number?A
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.
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| FAQs Pages | ||
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| Demat Account Profile | Transfer Shares from Demat Account | Demat Account Security Key |
| Transfer Shares to Demat | NRI Account | Demat Account Charges |
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