FAQs
What is dematerialisation?
Dematerialisation is the process of converting your physical share certificates into electronic format.
What are the documents required to open a Demat Account?
The following are the documents necessary to open a Demat Account:
- Duly filled out and signed Demat Account opening form
- Self-attested copy of PAN
- Recent passport-sized photos
ID and address proof
- Valid passport
- Aadhaar
- Driving license
- Voter ID
- State government-issued National Rural Employment Guarantee Act (NREGA) job card
For Non-Resident Indians (NRIs) or Foreign Nationals allowed to trade in the Indian stock market
- Valid Passport or Person of Indian Origin (PIO)/Overseas Citizenship of India (OCI) card
- Overseas residence
- Mariner's declaration form or copy of Continuous Discharge Certificate (CDC) (if you are an NRI working in the Merchant Navy)
- Demat Debit and Pledge Instruction (DDPI), if you want to avail of online trading facility
Existing HDFC Bank Savings Account holders need to keep their Aadhaar and PAN handy to show them to the bank executive during the video KYC process for online Demat Account opening.
Are there any charges to open a Demat Account?
With HDFC Bank, you can open a free Demat Account online, the bank does not levy account opening charges.
Who is eligible to open a Demat Account?
Resident individuals who can provide the necessary ID and address proof can open a Demat Account in India.
Is it possible for NRIs to open a Demat Account?
Yes, NRIs can open a Demat Account subject to the Foreign Exchange Management Act (FEMA) rules and regulations. Per FEMA, foreign investments by NRIs should not exceed 5% of the total paid-up equity capital issued by the Indian company.
Am I allowed to have multiple Demat accounts?
Yes, you can have multiple Demat Accounts at once. You can open more than one Demat Account with the same DP as well as with other DPs. For all accounts, you need to comply with the KYC norms as stipulated by SEBI and furnish your PAN details at the time of each account opening.
Can I transfer a Demat Account?
Yes, you can. You can transfer your Demat Account from one DP to another. You can submit the transfer request for your Demat Account with your existing DP.
Do I need a Demat Account to apply for an Initial Public Offering (IPO)?
To hold the IPO shares in the electronic format, you need a Demat Account.
Is a Demat Account mandatory to make Mutual Fund investments?
No, it is not. You can invest in Mutual Funds directly via a financial institution.
Can I open a Demat Account jointly?
Yes, you can open a Demat Account jointly.
