4.3How to open a Demat account
1What is it?
You open a demat account online with a broker (as Depository Participant) by completing e-KYC, usually in 15–30 minutes.
2Why does it exist?
You need it to hold the shares you buy.
3Diagram
- 1Download broker app / website
- 2Enter mobile, email, PAN
- 3Aadhaar e-KYC (OTP) or DigiLocker
- 4Upload signature & bank proof
- 5In-person verification by video (IPV)
- 6e-Sign with Aadhaar OTP
- 7Demat ID issued (CDSL/NSDL)
4Practical use
Add a nominee while opening (or choose to opt out formally). It makes things much easier for your family later.
5Quick revision
- Opened online with e-KYC.
- Needs PAN, Aadhaar, bank details, signature.
- Add a nominee.
6Knowledge check
Q1. What is IPV?Show answer
In-Person Verification, often done via a short video selfie.
Q2. Which ID is mandatory for investing in India?Show answer
PAN.
Q3. Why add a nominee?Show answer
So holdings can pass easily to your family.