A Demat (Dematerialized) account is an electronic account that holds your financial securities like stocks, bonds, mutual funds, and ETFs in digital format. It eliminates the need for physical share certificates and makes trading and investing more secure and convenient.
How long does it take to open a Demat account?
With the online process, most brokers can open your Demat account within 24-48 hours after document verification. The complete activation might take 3-5 working days depending on the broker and verification process.
What are the charges for opening a Demat account?
Most discount brokers offer zero account opening fees. However, some might charge a nominal fee (₹200-₹1000) which is often refundable. Annual maintenance charges (AMC) vary between brokers, ranging from ₹0 to ₹750 per year.
Can I have multiple Demat accounts?
Yes, you can have multiple Demat accounts with different Depository Participants (DPs). However, you need to complete the KYC process for each account separately.
What is the difference between a Demat account and a trading account?
A Demat account holds your securities in electronic form, while a trading account is used to place buy/sell orders in the stock market. You need both accounts to trade in stocks. Most brokers offer a 3-in-1 account that includes Demat, trading, and bank accounts.