A dematerialised account which is also known as Demat account works like a bank, where all your securities are being held instead of physical form of money, digital form of securities are being held. 

This is the most important and crucial step for a person who wishes to buy or sell a security in the stock market, because the very first step for buying or selling securities in the stock market is to open an online demat account, with a depository participant i.e DP. Here, depository refers to the organisation which can hold your securities electronically just like CDSL and NSDL, whereas DPs, depository participants are the intermediates between the investors and depositories which makes the task easy for both the parties. 

Online Demat account comprises of the easiest steps. All you need is to first open an account with a SEBI registered DP, and follow these basic steps: 

A. Choose your DP, which is registered with SEBI,

B. Register and fill the opening form for the same. 

C. Submit all the necessary documents. 

 

The list of documents which are required are for opening of online demat account:- 

Proof of Identity (POI)

Proof of Address (POA)

Exemptions/clarifications to PAN 

D. In person verification - by Depository Participants 

E. Account Number 

That’s it! You are ready to access your demat account online.

 

Here are some benefits of opening a online demat account online:-

1. You don’t have to worry about security and privacy, as they are the safest.

2. Here transaction costs are usually lower as compared to others.

3. There’s no limit on buying/selling of shares.

4. An online demat account is free for all the physical damages to the documents, such as theft, fraud, forgery etc.

5. This procedure is time- saving.  

6. Real-time price of various stocks. 

 

Know Your Customer - KYC documents required for opening an online demat account!

KYC documents are required almost everywhere, whether you are opening an online demat account or a normal bank account. As customer identification and verification is an important norm these days,  same is the case for Online Demat Account. Documents like:-

Identity Proof, Address proof, bank details etc are required to have a valid demat account. 

Finally, a demat account gives you access to all the kind of information related to the securities and stock market, where price level changes in every couple of minutes. So instead of wasting your time with physical documents and physical procedures, demat helps you to electronically buy/sell securities and update you on every single information which is important to you.