How can you activate a Demat account?

A Demat account helps in the convenient buying and selling of the shares/stocks for the users. It is an account that holds shares in an electronic form. Physical maintenance of stocks in terms of papers or documents is eliminated, which is an environmental-friendly option as it saves paper. You can open Demat account and avail yourself of many merits related to it, like cost-effectiveness, time saver, and sustainability.

How can you start a Demat account?

  1. Select a stockbroker 

The first step in activating this account is to finalize a stockbroker (also known as depository participant) according to your preferences. Do proper research on the service provider before selecting it. It should be experienced and has a reputed name. This is to avoid any fraudulent participants.

  1. Submission of activation document

The second part is to fill an activation form for this account. Fill the online activation document by going online on the stockbroker’s (depository participant) website. This is a convenient and easy method.

  1. KYC Norms

The next part is to give in the KYC papers. KYC refers to Know Your Customers. These documents include your ID proof like aadhaar card, voter ID card, passport, driving license, or utility bills, bank statement, and proof of income. All documents must be submitted to activate a Demat account.

  1. Verification

When the activation document and other important documents are given, the next part will be authentication, wherein your documents are checked. For this, the person has to visit the service provider’s office. But, because of the present situation of a pandemic, an online facility has also been started where the verification can be done with the aid of digital gadgets like a mobile phone and webcam.

  1. Signature on the agreement

After the authentication of documents, the next part is to sign the contract with the stockbroker. Stockbroker’s and investor’s rights, responsibilities, and claims are mainly stated in the contract. This ensures that there is no violation of the rules and conditions by any of the parties.

  1. Issuing of BO ID number

BO ID number refers to Beneficial Owner Identification Number. After all the above steps, your activation form will be sent for approval. After your appeal is approved, this BO ID number will be given to you, which will be necessary to login to your Demat account.

If you have doubts about how to open Demat account online, you can always ask the stockbroker. Holding a Demat account has several advantages. First, there are no costs of physical management of the documents. All the stocks/securities can be held in just one account. Also, it diminishes the risk of robbery, loss, or harm and saves time by eliminating the paperwork.


Get your Demat account activated from a reputed service provider like 5paisa. It has advanced trading platforms with premium research tools where all the stocks can be traded from just one account. Also, it offers a flat fee per order which is cost-effective. Activating a Demat account is a simple process.

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