How to open a DMAT account ?

DMAT Account is an account which you need to invest in shares, stock markets, or exchange traded funds.

To open a dmat account you first need a PAN Card. PAN Card is nowadays extremely essential in India for not only opening a Dmat Account, but also investing in Mutual Funds, depositing large amounts, typically over Rs.50,000 in banks, etc. So it is a good idea to apply for it as soon as possible. (If you already have a PAN Card, scroll down).

Documents needed to apply for PAN Card:Pan Card required to open Demat Account
  1. Proof of Identity : e.g. your 10th class SSC certificate, Ration Card, etc.
  2. Proof of Address: Ration Card, Driving Licence, etc.
  3. Recent Color Photograph : 3.5cm x 2.5cm
Visit Government website on PAN-Card for more details and questions.

Once you have a PAN Card, you will then you have to decide whom to open your dmat account with. Just as you can open a savings account with various banks, you can open your dmat account with various 'Depositories' or DPs. A depository or a DP is simply an institution with which you can open your Demat Account. You can choose to visit one of the following places: SBI, ICICI, HDFC, Sharekhan, CITIBank, UTI or Axis Bank, IDBI Bank, or several other banks and even some brokers offers this facility.
read:How to choose the BEST DEMAT ACCOUNT?
read:Demat Account : Think beyond Savings Account
read: Compare Dmat Account Charges
read: Compare Brokerage Charges

Documents Needed to Open a Dmat Account
  1. Copy of your PAN Card. It is also advisible to carry your original PAN Card. PAN Card also serves as Proof of Identity.
  2. Proof of Address. e.g. light bill, bank passbook etc.
If you are opening your Dmat Account with a Bank like SBI, and you would like to link it (i.e. view your holdings online) you certainly need to carry your Bank passbook. You may also use it as proof of address.

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Jan 30, 2009

4 comments:

iampriteshdesai February 23, 2009 at 11:07 PM  

Hi!
thanks for the informative blog. I recently turned 18 and have applied for net banking account. I am interested in stock market.
Is getting an Dmat account the only requirement?
Will I have to contact a broker?
Can you please write an article as detailed as this to outline the things needed to be done in stock trading? I am a total noob.

skm September 28, 2010 at 6:50 PM  

First of all hats of for u above these articles which u r posted till now. As i entered market in the year 2008 but i lost nearly Rs.50,000/- because of, i dont hav much knowledge,as i feel in that time share market means just buying and selling only.

In that time i consult a brokerage co. they completed all the formalities and they to me that mow onwards ur duty is to make call whether 2 sell or buy a share.
Result:losing my money.

Now i want to re-enter into market through online trading BY LEARNING ALL BASIC THINGS and i also planning to join SBICAP as i have online account in SBI.
I am very much inspired about ur articles this time also no what what is DEMAT AND SO ON...Please tell me that how much balance i have to maintain in my SBI a/c to start transactions .


Thanks

Anonymous November 1, 2010 at 12:29 PM  

Hello,

Thanks the information is very useful..

and the thing is am new to the stock market..can anybody tell me about where do i go for opening a demat account and start trading..please do reply anybody..

thanks in advance

renuka November 1, 2010 at 12:35 PM  

please tell me where should i go for opening a demat account..tell me about the best broking firms with respect to services technical support as well as cost effectiveness

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