Opening a demat account has never been easier. Here's why

For a long time, opening a demat account felt more like administrative work than the start of an investing journey. Forms had to be filled out carefully. Documents required self-attestation. Every step added to the wait.

The process today looks very different. Most investors now complete onboarding through a smartphone, the same device used for UPI payments or online banking. That shift has changed expectations entirely. People no longer see account opening as a separate offline activity. They expect it to move at the pace of every other digital service they use daily.

What is a demat account and why does it matter?

A demat account holds shares and securities in electronic form. When you buy stocks, they get added to your demat account. Sell them, and they’re taken out. In India, if you want to invest in listed shares, you have to open a demat account. SEBI doesn’t allow physical shareholding anymore; everything stays electronic now.

Before you open a demat account, take the time to check out the charges. These include account opening charges, Annual Maintenance Charges (AMC), brokerage per transaction and Depository Participant (DP) charges on delivery sales. Knowing these upfront avoids surprises once trading begins.

Why Paperless Onboarding Changed The Investing Landscape

Digital onboarding reduced the practical barriers that once kept many people from starting their investment journey. A few changes made the biggest difference.

• Aadhaar-based eSign removed the need to print, sign, and courier physical forms
• Video IPV (In-Person Verification) replaced office visits for identity authentication
• PAN-linked KYC pre-fills registered details, reducing manual data entry
• OTP-based verification made the entire process completable from one device

The result: someone can begin and complete account opening from home, during a lunch break, or anywhere with a stable internet connection.

How the modern onboarding process works

The current account opening flow is designed to feel manageable, not overwhelming. Instead of one giant form with all disclosures at once, the flow is broken into smaller, sequential steps.

Step 1: Mobile number verification – The onboarding process starts with a mobile number entry and OTP authentication. This ties together all the rest: verification alerts, login access, and account communication.

Step 2: PAN validation – Since the PAN is directly connected to the financial identity data, the system can easily map the account. The number of fields to be filled manually is fewer as the details registered are auto-fetched.

Step 3: Aadhaar authentication – Aadhaar authentication allows you to do online KYC and eSign verification without leaving the onboarding flow. This one step removed more friction from account opening than any design change could.

Step 4: Document upload and bank linking – Investors upload images of their PAN and Aadhaar directly from the phone's gallery. Bank account details are sent to link with the demat account.

Step 5: Video IPV – During onboarding, identity verification is now done via a guided video interaction. Financial regulations still require identity confirmation; digital onboarding just changed the way that confirmation is done.

Platforms like Kotak Neo have built onboarding around this digital verification flow, allowing account opening to be completed entirely from the app without having to visit a branch.

What to keep ready before starting

The process moves more comfortably when the following documents are kept ready:

• Aadhaar-linked mobile number
• PAN card
• Aadhaar card
• Digilocker login credentials
• Bank proof or cancelled cheque
• Stable internet connection during verification

It is also worth reviewing demat account charges before starting, specifically AMC, brokerage per trade type, and DP charges on delivery sales. If you know the cost structure up front, then it’s easier to select the right plan.

FAQs 

Why does the investing platform need my PAN at the time of onboarding? 

PAN is a financial identity document that is linked to KYC records for the purpose of account verification and setting it up.

What is Video IPV?

As part of onboarding, users will be taken through an identity confirmation in a live video interaction. This replaces the previous requirement to visit a physical branch for in-person verification.

Why is Aadhaar linked to digital onboarding? 

Aadhaar authentication helps with online KYC verification and also allows Aadhaar-based eSign submission while opening an account, making physical signatures redundant.

Can onboarding be done only on a mobile phone? 

Yes. You can upload documents, get OTP verified, do video IPV and complete eSign all from a smartphone. There is no need for physical infrastructure.

What are the common demat account charges that I should know? 

Demat account charges generally include an account opening fee, AMC, brokerage per trade and DP charges on delivery sales. These differ by broker and plan. For example, Kotak Neo has zero or low account opening charges, zero AMC for select user segments, and flat brokerage of Rs 10 to 0.20% per order depending on the type of trade, with intraday and F&O usually cheaper than delivery. Before you open an account, check the full fee schedule on your platform’s pricing page.

Why are investing platforms adopting digital onboarding?

Getting started online is simple. You can verify your identity faster, use the platform’s app, handle authentication and everything all without any paperwork. Plus, you don’t have to visit a branch or deal with physical paperwork, which makes it easier for more people to join.

Conclusion

Digital onboarding has meaningfully reduced the distance between deciding to invest and actually starting. What once required physical visits, printed forms, and long waits now fits inside a single app session on a smartphone. 

For investors evaluating platforms, understanding demat account charges alongside the onboarding process gives a complete picture of what to expect, both at the point of account opening and as trading activity grows.

Disclaimer: This article is for informational purposes only and should not be considered investment advice from Kotak Neo. For compliance T&C and disclaimers, Visit www.kotakneo.com/disclaimer