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Investment Tips

Ultimate guide to opening a demat account in India

Starting your investment journey in Indian stock market requires two elements: understanding account setup process and selecting a broker. For long-term equity goals or mutual funds, learn how to open demat account online as part of this process.

1.Keep Your Documents Ready:Ensure your Aadhaar is linked to your active mobile number for instant OTP verification.

Collect digital copies or clear photos of the required onboarding documents to learn how to open demat account online.

  • PAN Card (Mandatory for stock market investments in India)
  • Aadhaar Card (Used for paperless e-Sign verification)
  • Bank Account Details (Canceled check, bank statement, or passbook front page)
  • Proof of Income (Last 6 months’ bank statement or salary slip — required only if activating Futures & Options / Derivatives)
  • Signature Sample (Signed on a clean white paper)

2.Choose a SEBI-Registered Stock Broker:Select between discount brokers and full-service bank-backed brokers.

How to open demat account online can be learned by downloading the broker’s mobile app or visiting their website, such as Zerodha, Groww, or Angel One. Click ‘Open Demat Account’ or ‘Sign Up’ and enter your mobile number to receive an OTP verification code.

3.Complete Personal and Bank Verification:

  • Enter your PAN details and date of birth.
  • Link your bank account by providing your Account Number and IFSC Code. The broker will execute a penny drop (transferring ₹1) to verify your bank account ownership automatically.

4.Perform In-Person Verification (IPV):

Complete the automated video KYC process. You will be prompted to record a brief 5-second video showing your face clearly while holding a randomly generated short code on a piece of paper, or simply facing your front camera for real-time live liveness check.

5.Complete e-Sign via Aadhaar Digilocker:

Review your generated account opening form. Click “e-Sign”, which redirects you to the official NSDL/CDSL portal. Enter your 12-digit Aadhaar number and submit the OTP sent to your registered mobile number. Once e-Signed, your account will be verified and activated within 24 to 48 hours.

Comparison of Leading Stock Brokers in India

When selecting a broker, consider AMC, platform usability, and execution speed. Additionally, discount brokers offer flat-fee pricing, and many wonder how to open demat account online.

Stock BrokerBrokerage (Equity Delivery)Brokerage (Intraday & F&O)Annual Maintenance Fee (AMC)Ideal Investor Type
GrowwFree (₹0)₹20 per executed order₹0 (Zero AMC Forever)Absolute beginners and long-term index investors
ZerodhaFree (₹0)Flat ₹20 or 0.03% (whichever is lower)₹300 + GST / yearActive traders, chart analysts, and discipline-focused investors
Angel OneFree (₹0)Flat ₹20 per executed order₹240 + GST / year (Free 1st year)Investors seeking research recommendations alongside low fees
UpstoxFree (₹0)Flat ₹20 per executed order₹300 + GST / year (Free 1st year)Tech-focused traders and options strategists
ICICI DirectVariable (Plan dependent)₹20 per order or % based₹700 + GST / year (Free 1st year)Investors desiring 3-in-1 banking + demat integration

Key Considerations Before Account Opening

  • DP Charges (Depository Participant Fee): Whenever you sell equity delivery holdings from your Demat account, depositories (NSDL/CDSL) charge a small flat fee (typically ₹13.50 to ₹15.50 plus GST per company per day, regardless of quantity sold).
  • Direct Mutual Funds: Discount platforms like Groww and Zerodha (Coin) allow you to invest in Direct Mutual Fund plans with 0% commission, saving 0.5%–1.5% annually compared to Regular plans sold by traditional agents.

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