Open a Free Demat Account

A demat account offers multiple benefits to investors and traders, other than storing their shares securely. Here are some key advantages of opening a demat account with Upstox:

• Convenience A Demat account allows you to buy and sell shares online without having to handle physical documents or sign cheques. You can buy, sell and access your holdings anytime and anywhere.
• Enhanced Trading Experience All Demat account transactions are settled in a T+1 day cycle. For example, if you buy 100 shares today, the shares will be credited to your account by the next business day. This offers liquidity to traders and investors, allowing them to execute their strategies seamlessly.
• Low Risk of Theft Since a Demat account stores your shares electronically, there is no risk of forgery or losing physical share certificates. Even if you misplaced your device, all your investments will be held safely in your demat account and can be accessed by signing in on your broker’s website, using your Client ID and OTP.
• Loans Against Securities You can pledge the securities held in your demat account with banks or NBFCs to secure a loan. This benefits investors facing financial crisis by allowing them to avail loans without having to sell their investments.
• Automatic Receipt of Dividends & Stock Splits All Stock Splits and Bonus issues are automatically credited to your demat account. And dividends on stocks are credited to your demat-linked bank account.
  For example, if a company declares a 1-for-2 stock split, the shares in your demat account will be automatically split, requiring no intervention.

There will be certain terms you will often hear people use when talking about their demat account. Here are some common terms you need to know before opening a demat account:

• Depository A Depository is a Central body holding your securities electronically. In India, there are two main Depositories, NSDL (National Securities Depository Limited) and CDSL (Central Depository Services Limited).
• DP (Depository Participant) Your broker has to register with a Depository and become a DP (Depository Participant) to offer Demat Services.
• BO ID/Client ID BO ID (Beneficiary Owner ID) or Client ID is your unique 16-digit identifier for CDSL accounts. For NSDL accounts, the demat account number is a combination of DP ID and Client ID numbers. This unique number is your digital identity in the securities market and is essential for signing into your demat account.
• Loans Against Securities You can pledge the securities held in your demat account with banks or NBFCs to secure a loan. This benefits investors facing financial crisis by allowing them to avail loans without having to sell their investments.
• ISIN The ISIN (International Securities Identification Number) is a unique 12-character number assigned to each share, bond, or debenture and mutual fund unit. It helps you track your holdings and is mandatory for transferring and pledging securities held in your demat account.
• DDPI (Demat Debit and Pledge Instruction) DDPI is a legal document that authorizes your broker to debit securities from your demat account for pledging/re-pledging for margin trading, fulfilling sale obligations or participating in buy-backs. It is a more secure replacement for the previous POA (Power of Attorney), offering a seamless trading and investing experience.
• POA (Power of Attorney) A Power of Attorney (POA) is a legal document that authorises your broker to operate your demat account on your behalf. This is usually used to allow brokers to debit shares from your account for selling or pledging for margin, enhancing your trading and investing experience.
• AMC (Annual Maintenance Charge) Your broker charges an AMC (Annual Maintenance Charge) to maintain your account, cover security, and offer customer support. AMCs vary across brokers and depend on your holdings' value.

With Upstox, you can trade across various securities, diversify your portfolio and gain access to all markets.

• Stocks: You can buy/sell stocks of companies listed on the Indian stock exchanges (BSE and NSE).
• Intraday Trading/ Scalping: You can buy/sell stocks of listed companies and can potentially earn profits on your short-term investments.
• IPO: You can bid for the upcoming IPOs of companies and become a part of your favourite company’s growth.
• Mutual Funds: Invest in different types of mutual fund schemes to achieve your long-term financial goals.
• Futures & Options: Invest in Futures and Options to manage your risk and hedge your investments. F&O contracts are used to hedge positions and manage risks, but they carry high risk and may not be suitable for all traders and investors.
• Commodity Trading: Invest and trade in commodities via Indian commodity Exchanges such as MCX, NCDEX, NMCE and ACE.
• Margin Trading: Upstox covers up to 75% of the total investment value, allowing you to buy stocks on leverage.
• ETFs: Buy/Sell Exchange Traded Funds and gain exposure to various markets.

Opening a Demat account with Upstox is quick and easy. Follow the steps below.

• Step 1 Download the Upstox App or visit the Upstox website. Enter your mobile number and verify it via OTP and provide basic personal information.
• Step 2 Complete your paperless e-KYC process and provide your income proof only if you want to activate the derivatives segment in your trading account to trade F&O
• Step 3 Verify your identity by taking a live photo.
• Step 4 Enter and verify your bank account details.
• Step 5 Add a ‘Nominee’ to your Demat account. SEBI mandates adding a nominee to your demat account or completely opt out of the facility.
• Step 6 Read and accept the terms and conditions of opening a demat account with Upstox by e-signing.
• Step 7 Once all the required details are provided, Upstox will verify and activate your demat account within 4 working days.

Other than storing your investments securely, Upstox's demat account offers the following facilities.

• A Demat account allows you to transfer your investments by filling in a delivery Instruction Slip (DIS), authorizing your broker to transfer securities from one Demat account to another without any effort from you.
• Demat accounts enable you to track and monitor your portfolio from various devices such as mobile, laptops and computers. It also offers you the facility to execute trades anywhere, all you need is an internet connection.
• A demat account allows you to freeze and unfreeze certain holdings or the entire account to prevent unauthorized transactions and keep your investments safe.
• A demat account eliminates the cost associated with storing and handling physical share certificates.
• Demat accounts help monitor your stock investments in case of any corporate actions such as dividends, stock splits and bonus issues, and reflect the same in your portfolio.
• You can pledge your demat account investments as collateral when availing loans from banks and other financial institutions.
• A demat account allows you to convert your dematerialised securities into a physical form through a process of Rematerialisation. You are required to fill out an RRF (Remat Request Form) provided by your broker.
• With a demat account, you can submit delivery instructions to your Depository Participant electronically through CDSL instead of submitting physical instructions to them.
• A demat account allows you to buy and sell securities in odd lots, depending on your strategy and financial goals. Before dematerialisation, you could buy/sell securities in fixed quantities.