Most PDs do not charge a fee to open a Demat account. Some offer repayable account opening charges while others have a fixed fee.
There are also other payments such as transactions fee, annual maintenance fee, and payments for converting shares from physical format to electronic - in case you need to get physical shares to be converted to the Demat form.
Once you have received a copy of the terms of the agreement, the rules and regulations, and the payments that will apply, you will need to fill in the account opening form.
How to open a Demat Account
1) Choose Depository Participant(DP)
2) Fill Demat account opening form
3) Submit all documents
4) In person verification by DP
5) Account Number / ID will be provided by DP
6) Access Your Demat Account Online
Make sure you add a nominee when you open a Demat account.
1. Submit all necessary copies of documents. Dealing with a test, ID, and your PAN card mainly
2. Then the DP staff will contact you to carry out a personal check
3. Once the check is satisfactory, you will receive details of your Demat Account from your DP
It usually takes one or two weeks to open a Demat account. There is no compulsory requirement to maintain a minimum balance of shares when opening the Demat account.
You can open multiple Demat accounts in the same name as the different PIs.
What are the KYC norms to achieve to open the Demat account?
To prevent fraudulent activity, the customer identification process such as KYC (Know Your Customer), has been introduced. According to SEBI, you need to achieve KYC norms to open a Demat account. This is what is needed to achieve the KYC norms:
1. Proof of identity - You need to have a PAN card, passport, voter card, or Aadhar card.
2. Proof of address - You need to have a passport, account card, bank statement, utility bills or driving license.
3. Bank account number held in your name