How to Operate Demat Account - Guide for Beginners | Motilal Oswal

How to Operate Demat Account - A Complete Guide for Beginners

Operating a Demat account is not as complex as it may seem. It can be opened after registration with any brokerage firm. Here’s the complete Demat account for beginner’s guide: -

  • How to operate Demat account? 

With the help of an active internet connection and password provided after the opening of the Demat account, it can be accessed anytime.  A Depository Participant (DP), which is the bank or the brokerage firm has to be selected to avail services. After that a form has to be filled and documents like identity proof, passport size photographs, PAN card, address proof etc have to be submitted. Then the verification process commences after you accept the terms & conditions.

1. Get a Pan Card:
PAN or a Permanent Account Number Card is mandatory for opening a Demat account. You need identity proof, address proof and Date of birth certificate to apply for a PAN card. It can be done either on NSDL website or on UTITSL.

2. Open Demat account:
Demat account can be opened anytime by just following these simple steps:

  • Get in touch with a depository participant (DP)
  • Submit the completed account opening form provided by the DP along with all the KYC (Know your Customer) details. A photocopy of PAN card, address proof and bank account details also need to be submitted to the depository participant.
  • DP initiates a verification process upon receiving all documents.
  • On the completion of the verification process, the depository participant opens the Demat account online on applicant behalf.
  • Once the account is opened, all important details like DP ID, client ID, master client report, tariff sheet, and a copy of rights & obligations of beneficial owner and depository participant, will be provided to you.


3. Select the right Depository Participant:
It's advised to first compile a list of all brokerage firms that offer services and then do basic research based on parameters like the services they provide, added benefits, its legacy and reputation, whether it suits your needs, their customer support etc. It's also recommended to check out the brokerage cost, if any and to find out if the trading system interface is smooth and seamless. Look carefully for any hidden costs mentioned in fine print. Conduct a comparative analysis based on all the services offered and other charges like annual maintenance charge.

4. Start Trading:
Once the physical verification process is completed, an ID and an account number is provided to the investor. Using the account number and the ID, the Demat account can be used for trading. There's an option of share allocation that allows investors to link Demat account with the trading account, which allows him to see all the Demat holdings. Share allocation process is simple and takes just a few minutes.

5.Build Portfolio:
Once your Demat Account is up & running, follow the market updates regularly, gain sectoral knowledge and then start investing. It's always advised not to put all eggs in one basket, so building a diverse portfolio of stocks across different sectors and price caps helps mitigate risks and yields safe-returns.


How to open a Demat account may appear to be quite a daunting task, but if basic steps are followed, it’s really easy. Demat account for beginners is a must for initiation into the world of trading Opening Demat account is now hassle-free than ever before.

Related Articles: How to Open a Demat Account Without a Broker | Factors to Keep in Mind While Opening a Demat account | Factors to Consider When Opening a Demat Account | 10 Points to Remember When Operating your Demat Account | Types Of Demat Account & Trading Account

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