Opening a demat account is a crucial step for anyone looking to invest in the Indian stock market. With advancements in technology, the demat account opening process has become faster and more straightforward. But how long does it actually take to open a demat account and get started with trading?
Let’s explore the timeline and the steps involved, so you know what to expect.
What is a Demat Account?
A demat account holds your shares and securities in an electronic format, making it easy to manage your investments without the hassle of physical paperwork. You need both a demat account and a trading account to buy and sell shares in the stock market. While the demat account stores your securities, the trading account is used to execute transactions.
Steps Involved in the Demat Account Opening Process
1. Choosing a Broker or Investing App
The first step is selecting a broker or an investing app to open your demat account. Many brokers and banks provide demat services, but choosing the right platform can make a significant difference. The best investing apps offer user-friendly interfaces, quick registration processes, and features like seamless fund transfers and real-time stock updates. Selecting an app with a solid reputation and good reviews can significantly reduce the time it takes to complete the demat account opening process.
2. Filling Out the Application
After selecting your broker or app, you need to fill out an application form. This process has been digitized by most brokers and apps, making it much faster and more convenient. You’ll be required to submit some basic details like your PAN card, Aadhaar card, and bank details. The majority of the best investing apps offer paperless, online submission options, allowing you to complete the form in minutes.
3. KYC Verification
Once the application is submitted, the next step is the Know Your Customer (KYC) verification. Most investing apps and brokers now offer e-KYC, which is an instant verification process done online. You’ll need to provide your identification and address proof, usually through your PAN and Aadhaar cards. This step can be completed within a few minutes to a few hours, depending on the platform.
4. In-Person Verification (IPV)
As part of regulatory requirements in India, an In-Person Verification (IPV) is mandatory for opening a demat account. Luckily, many brokers now offer video-based IPV, allowing you to complete this step digitally. This typically involves recording a short video or joining a video call to confirm your identity. Most investing apps make this process quick, taking only 5-10 minutes.
5. Linking Your Trading Account
Once the KYC and IPV processes are completed, you’ll need to link your trading account with your demat account. The trading account allows you to execute buy and sell orders in the stock market, while the demat account holds your securities. Many brokers and investing apps offer the option to open both accounts simultaneously, speeding up the process.
6. Account Activation
After your documents and verification steps are approved, your demat account will be activated. If you’re using a modern investing app or platform that supports paperless processes, this can happen within 24 hours. For more traditional brokers or manual verification processes, it may take 2-3 days.
How Long Does It Take to Open a Demat Account?
If you choose to open a demat account using an online investing app, the entire process from filling out the application to account activation can take as little as a few hours to 24 hours. However, if you’re using a more traditional method with physical document submission and manual KYC checks, it can take anywhere from 3 to 5 business days.
Factors That Affect the Time Taken
1. Choice of Platform
The fastest way to open a demat account is through a digital-first platform or the best investing apps that provide e-KYC and instant verification. These platforms often boast of completing the process in less than a day. On the other hand, traditional brokers may take longer.
2. Document Completeness
Incomplete or incorrect documents can slow down the demat account opening process. Ensure all details, such as your PAN card number, Aadhaar information, and bank details, are accurate and up to date to avoid delays.
3. Regulatory Requirements
If your broker requires a physical in-person verification or if you’re opting for a traditional broker, this can add time to the demat account opening process. The use of digital IPV is much faster and reduces the waiting time.
Why Choose an Investing App?
One of the biggest advantages of opening a demat account through an investing app is speed and convenience. Many of the best investing apps offer:
- Instant KYC and IPV: No need for physical paperwork or in-person meetings.
- Quick Account Activation: Start trading within a few hours of completing your application.
- Real-Time Monitoring: Manage your demat and trading account on the go, track portfolio performance, and execute trades in real time.
- Low Fees: Many apps offer lower fees and charges, making investing more accessible.
Conclusion
Opening a demat account is easier and quicker than ever before, especially if you use the right platform. By choosing a modern investing app, you can complete the demat account opening process in as little as a few hours, allowing you to start trading and building your portfolio almost immediately. However, if you prefer traditional methods, expect the process to take a few days. In either case, ensuring that your KYC details and documentation are accurate will help speed things along.
