How to Open a Demat Account ?

An individual demat account is a normal demat account for Indians residing in India. The individual opening a demat account in his name should be of legal age, I.e, 18 years and above.

You can open a demat account for minors, but the account has to be handled by their legal guardian until the minor turns 18 years of age.

You can open a joint demat account with your spouse, family, or friends. All the holders of a joint account can access and monitor their investments. This helps in having a unified approach to investing. Do note that you cannot convert a normal demat account to a joint demat account.

NRIs wanting to invest in India can open an NRI demat account with Upstox. The Portfolio Investment Scheme (PINS) was established to facilitate NRIs to participate in the Indian Stock market.

There are two categories of demat accounts for NRIs,

• Non-Resident Ordinary (NRO)

PINS NRO holds your securities and income in India. You cannot transfer these funds to the foreign country you reside in.

• Non-Residential External (NRE)

An NRE account lets you hold your Indian investments and income generated from them, which can be transferred to the foreign country you reside in.

How to open a demat account online?

Follow the steps below to open your demat account

Step 1. Choose a depository participant to open your demat account with. It could be a bank or a trusted brokerage firm like Upstox, authorised by SEBI.

Step 2. Fill out a demat account opening form and submit it. You can check out Upstox Demat account and open your Demat account.

Step 3. Fill the demat account opening form and attach the scanned copies of your documents. The list of documents required is given below.

Step 4. After filling the form, you’re expected to sign an agreement with your broker, clearly stating your respective responsibilities as trader/investor and broker.

Step 5. Once all documentation and formalities are done, you will receive your demat account number.

Documents Required for Demat Accounts

To open a demat account, the following documents are required:

• ID Proof
• Resident Proof
• PAN
• Passport-size photos

To open a demat account for an NRI, the following documents are required:

• A copy of your passport.
• A copy of your valid visa.
• Overseas address proof and address proof of your workplace.
• A PINS permission letter from an authorised dealer.
• A copy of your PAN card.
• Passport-sized photographs.
• Proof of bank accounts.
• PIS approval letter from the Bank
• Cancelled cheque copy of PINS bank account

You are required to submit these documents along with the demat account application form.