Opening a Demat Account with HDFC Securities: Benefits of Demat Account

To start trading, you’ll need two important accounts: a Demat account and a Trading account. Here’s a simple guide on what these accounts are and how you can open them with HDFC Securities.

What is a Demat Account?

A Demat account, which stands for Dematerialized account, acts like a digital storage for your shares and securities. Imagine it as an online safe for your investments. When you purchase shares, they’re held in your Demat account; when you sell shares, they’re taken out of this account. This system replaces physical share certificates, making transactions quicker, more efficient, and much safer. Basically, a Demat account keeps your investments safe from risks like theft, loss, or damage by storing them electronically.

What is a Trading Account?

A Trading account is used to buy and sell shares in the stock market. While your Demat account stores the shares, the Trading account is used to execute transactions. You need both accounts to trade: the Trading account for placing buy or sell orders and the Demat account for holding the shares. When you make a trade, your Trading account handles the transaction, and the shares are either credited to or debited from your Demat account.


Opening a Demat Account with HDFC Securities


Opening both accounts with HDFC Securities is easy, enabling you to manage your stock market investments efficiently and securely.

Opening a Demat Account with HDFC Securities App

HDFC Securities offers a seamless and user-friendly process for opening a Demat and Trading account, which can be completed in just 10 minutes. Here’s a step by step guide to open a Demat account:


Step 1: Gather Necessary Documents

Before you begin, ensure you have the following documents ready:

PAN Card

Aadhaar Card

Need to enter Bank account details (e.g. IFSC code and account number)

Signature on Blank paper (white)


Step 2: Download the HDFC Securities App

First, download the HDFC Securities app from the Google Play Store or Apple App Store. Once installed, open the app and click on the option to open a Demat account.


Opening a Demat Account with HDFC Securities


Step 3: Mobile Number Verification

Enter your mobile number in the app. You will be sent a One-Time Password (OTP) by SMS. To authenticate your mobile number, please provide the OTP that has been sent to you.


Step 4: Email ID Verification

Next, enter your email ID. Your email will receive yet another OTP for verification. Enter this OTP in the app to verify your email address.


Step 5: PAN Details

Enter your PAN card details. To authenticate your account, an OTP will be forwarded to the mobile number on record. Input this OTP to continue.


Step 6: Bank Details

Provide your bank’s IFSC code and your bank account number. You will again receive an OTP for verification. Enter this OTP to verify your bank details.


Step 7: Upload Signature Photo

Take a clear photo of your signature and upload it to the app. This is a mandatory step to authenticate your application.


Step 8: Live Photo for Face Verification

For face verification, the app will prompt you to take a live photo. Ensure you are in a well-lit area and follow the instructions to capture and upload your photo.


Step 9: Enter KYC Details

You will need to fill in your KYC (Know Your Customer) details. This includes:

Annual income

Occupation

Mother’s name

Gender (male/female)

Marital status


Step 10: Choose Your Plan

HDFC Securities offers different plans. Choose between a free plan or a more valuable plan based on your trading needs and preferences.

Step 11: Save and Proceed

Review all the information you have entered. If everything is correct, click on “Save and Proceed.”

Step 12: E-Sign Process

You will now proceed with the e-sign process. Click on “Sign Now,” and you will be redirected to the NSDL portal.

Step 13: NSDL Portal Authentication

On the NSDL portal, enter your Aadhaar card number. Tick the checkbox to agree to the terms and click on the “Send OTP” button. Enter the OTP received on your registered mobile number to verify your identity.

Step 14: Account Activation

Once you have completed the e-sign process, your Demat and Trading account will be successfully opened. You will receive an email from HDFC Securities containing your User ID and password.

Step 15: Start Trading

After activation, which typically takes between 2 to 24 working hours, you will receive a confirmation message from NSDL on your registered mobile number. Once activated, you can start trading immediately using your new account.


Advantages of Opening a Demat and Trading Account with HDFC Securities



Choosing to open a Demat and Trading account with HDFC Securities brings a variety of benefits:


Easy-to-Use App

The HDFC Securities app is designed to be simple and user-friendly, making it ideal even for those new to trading.

Fast and Paperless Setup

You can complete the entire account opening process online in just 10 minutes, with no need for any physical paperwork.

High Security

HDFC Securities ensures the highest level of security for your transactions and personal data, keeping your investments safe.

Detailed Research Access

Gain access to a wealth of research reports that can help you make well-informed investment choices.

Live Updates

Receive real-time updates on market data, stock prices, and trading news directly through the app.

24/7 Support

HDFC Securities provides around-the-clock customer support to help you with any questions or issues you might encounter.

Diverse Investment Options

Beyond equity trading, you can invest in mutual funds, bonds, IPOs, and more with your HDFC Securities account.


Why Both Demat and Trading Accounts Are Necessary

You might wonder why it's important to have both a Demat and Trading account. Here’s the reason:


Trade Execution and Security Storage

A Trading account is necessary for placing buy and sell orders, while a Demat account is essential for holding the securities you purchase. They work together seamlessly to support your trading and investment activities.

Legal Necessity

According to regulations, you must have both accounts to trade in the stock market. A Trading account alone cannot store securities, and a Demat account alone cannot execute trades.

Seamless Efficiency

Linking both accounts allows for smooth and efficient transaction processing. When you purchase shares, they are automatically credited to your Demat account. When you sell shares, they are debited from your Demat account, and the proceeds go to your bank account.


You can visit to HDFC official site for further details by clicking here HDFC Securities Online Demat Account


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Sachin Chopade
I am a Finance and Tax Analyst, Content Creator, sharing valuable articles and calculators related to Finance, Accounting and Banking industry.