Are you planning to enter the field of stock market trading? But do you feel confused by the different types of demat accounts and the documents required? In this post, we will explore what a demat account is, why you need one, and how to open a demat account for beginners in India in a few easy steps.

Let’s get started!

What is a Demat Account and How Does it Work?

A demat account allows you to store and manage various securities, such as stocks, bonds, mutual funds, etc., in a digital format. It eliminates the need for physical certificates and paperwork. 

An online demat account makes the trading and investing process easier, faster, and safer.

Before we step in to understand how to open a demat account, you must know the benefits.

Why Do You Need to Open a Demat Account? 

A demat account is mandatory for anyone who wants to trade or invest in the Indian stock market.

You need to open a demat account because it offers many benefits and advantages, such as:

• An online demat account enables you to access your securities from anywhere and anytime with a user ID and password.
• It reduces the risk of loss, theft, damage, or forgery of physical certificates.
• It facilitates the automatic transfer of dividends, interest, refunds, etc., to your linked bank account.
• With a Demat account, you can easily track your investment portfolio and monitor changes in the value of your holdings.

How to Open a Demat Account on Shoonya?

To open a demat account on Shoonya, you can either download the Shoonya app from the Play Store/Apple Store or you can directly visit- PRISM.

Here are a few steps to open a demat account on the zero brokerage online trading platform:

1. Enter Details and Verify OTP: You must click on “Register Now.”

Next, please provide your email and mobile number. Verification codes will be sent to both. You must enter those codes to verify your account.

2. Provide PAN and Date of Birth: Enter the PAN card number and your date of birth as they appear on the Pan card.

Additional Steps for Non-KRA Users Only- If you haven’t done your KRA KYC Validation, click here ↓

You will be notified that ‘you are not KRA verified.’

KRA, or KYC Registration Agency, stores and verifies investor KYC details in the securities market. To check your KRA verification status, enter your PAN number on any KRA website like CVL KRA, or KARVY KRA. If verified, your status will show as ‘Verified’; otherwise, it will be ‘Not Available’ or ‘Pending’. 

Next, you need to fill in your Aadhar number and CAPTCHA.

• Once you enter that, you will receive the OTP. 

• Next, you need to give consent by clicking on ‘Allow’ for your digilocker details that are automatically fetched from your account.

3. Enter Your Bank Account Details: Next, you must enter your account number, IFSC code, and branch details.

4. Enter Personal Details: Enter all your relevant details as per the image below.

• Adding a nominee option

For instance, for adding the nominee, it shall by default be set as ‘No’. 

You can also add your nominee later by raising a ticket on the PRISM portal.

• You need to cross-check the demat account information as shown in the image below and click on ‘confirm.’

5. Confirm Details and Select Your Trading Segments: You can select your trading segments like NSE, BSE, MCX, and NCDEX and click on ‘confirm.’

Note– For FATCA Instructions, click on the second option only if you are an NRI.

6. Upload Latest Signature: You can draw your signature on the screen, or you can upload a picture of your signature on plain paper.

7. Complete Additional Steps: You must provide income proof depending on your chosen segment. 

Please note that your income proof is mandatory for the FnO segment.

Note- We are now utilising an account aggregator where you will need to select your bank and enter the OTP. Your latest six-months bank statement will be automatically fetched with just one OTP. 

Alternatively, if you prefer, you can choose the manual upload option for documents. 

You can upload any one of these:

1. Latest 6 Months Bank Statement
2. Latest ITR
3. Latest Form 16
4. Latest 3 Months Salary Slips
5. Latest Networth Certificate
6. Latest Demat Holding Statement

To expedite the account opening process, you can simply click on ‘I will provide later’ and move on to the next step.

Your demat account will open in the cash segment. 

However, you can activate FnO later.

Additional Steps for Non-KRA Users Only- If you haven’t done your KRA KYC Validation, click here↓

Address Proof: With the help of digilocker, your address will automatically be fetched.

8. Photo verification: Next, as the last step to confirm your identity for opening a demat account online, you must take a selfie and click on ‘submit’.

9. E-Sign Your KYC Document: Let’s e-sign your KYC document to complete your account registration process.

10. Confirmation: Once everything’s processed, you’ll get a message confirming your demat account opening process is complete.

Keep an eye on your email for your trading login info.

And that’s it! You’re all set up with your Shoonya trading and demat account. 

In this process of ‘how to open a demat account’, you’ll need to provide your email address and mobile number. 

Additionally, you’ll need a few documents handy:

1. PAN Card: Make sure you’ve got your PAN card number and your date of birth handy. Enter these details as they appear on your PAN card.
2. Aadhar Card Linked to Mobile Number: Your Aadhar card will be used for verification purposes. It’s crucial that it’s linked to your mobile number.
3. Bank Account Details: Have your bank account information ready, including your account number, IFSC code, and branch details.

If you’re interested in trading in the FNO or derivative segment, you’ll also need:

• Income Proof: This could be a latest 6-months bank statement or your latest Income Tax Return (ITR).
• Signature: You’ll need to provide a clear image of your signature on plain paper. Make sure it’s done with a pen.

How to Open a Demat Account in India| Know the Documents Required

The documents required for opening a demat account are:

•  Proof of Identity (POI): You need to submit a valid photo identity proof, such as a PAN card or Aadhaar card.

•  Proof of Address (POA): You need to submit a valid address proof, such as an Aadhaar card.

•  Proof of Income: You must submit proof of income if you want to trade in derivatives, such as futures and options. 

You can submit one of these- The latest 6-months bank Statement, the latest ITR, the latest Form 16, the latest 3 months salary slips, the latest net-worth certificate or the latest Demat holding statement.

•  PAN Card: You must submit a copy of your PAN card, which is mandatory for opening a demat account online.

How to Open a Demat Account in India| Things to Remember

Some of the things to remember while opening a demat account online are:

1. Type of Demat Account: You need to choose the type of demat account that suits your trading needs and preferences. 

There are different types of demat accounts, including:

• Online: Resident Individual
• Offline: NRI demat account, HUF demat account, Minor demat account, Corporate account, LLP account, Partnership demat account, Joint account

2. Brokerage Fees: Check out the fees and charges for every trade. 

With Shoonya, you can open a free demat account in India and enjoy zero AMC and lifetime zero brokerage charges on all segments, including stocks, futures, options, currencies, commodities, mutual funds, ETFs, bonds, and IPOs across all major stock exchanges like BSE, NSE, MCX, and NCDEX.

3. Customisation and Features: Enjoy AI-powered stock market predictions and signals on Shoonya. Use advanced tools on our online trading platform.

FAQs| How to Open a Demat Account| Shoonya

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Disclaimer: Investments in the securities market are subject to market risks; read all the related documents carefully before investing.