John D. Rockefeller once said
The person who starts simply with the idea of getting rich won’t succeed, you must have a larger ambition.
Well, the larger ambition can be aided by investing!
In recent years, the stockbroking industry has witnessed striking progress and a significant shift in the old ways of operation. Kudos to top stockbrokers in India like Zerodha who have made their investing services easily accessible to the general public.
Before we address the query - How to open a Demat account with Zerodha, let us first see how it has disrupted the broking sector.
In the year 2019, it was found that in terms of the number of active clients, Zerodha is the top stockbroker in India. Established in 2010 by brother Nithin and Nikhil Kamath, Zerodha offers an online trading platform with reliable services and low brokerage charges.
Thanks to the Kamath brothers who took inspiration from NSE Now (a free trading platform offered by NSE) and Charles Schwab (a person who had already introduced this concept in the ’90s in the US). They harnessed the information from these sources to set the base idea of flat fee discount broking services for their firm.
But, they soon realized that in order to cater to a larger audience they need to change. So, in December 2015, Zerodha came up with the concept of charging a zero-brokerage fee on delivery trades. The 2016 demonetization pushed their business even more as more people became part of digitization.
Zerodha is a private and unlisted company. Some of the financial highlights are-
In FY20, the company’s revenue went above the mark of Rs 100 crores and by the end of the third quarter of FY20, it was around Rs 1,058.55 crores.
During the same fiscal year, the PAT (profit after tax) was reported to be Rs 592 crores. Along with that, the company’s EBITDA surged by 35.83\% in 2020 as compared to 2019.
The network swelled by 44.83\% in the year 2020 because when the market started to correct itself after falling massively during March, investors became active in the market.
KITE - Another trading platform
COIN - Platform for Mutual fund
VARSITY - Portal for giving free knowledge regarding stock market
KITE Connect - Assists financial start-ups with APIs
You can easily access the services and Demat account opening form through the official website of Zerodha or even download their app. For easy understanding here the synopsis of all you need to know about opening a Demat account with Zerodha, brokerages charges, etc.
Aadhaar Card (not required if you opt for the offline route)
Mobile number (which is linked to your Aadhaar card)
Scanned copy of your real signature
Income proof (Income Tax Return acknowledgement/bank statement of 6 months, etc can work)
Bank statement of a cancelled check (for linking your bank account)
Mobile Number Verification - As the first step you simply go to Zerodha’s website and sign up with the help of your mobile number. Upon entering your number, you will receive an OTP (one-time-password) of 6 digits, enter it and proceed ahead
Email Verification - In the next step, you need to validate your email address. Simply enter your email ID after which you will receive an OTP over your mail. Carefully enter it and confirm the same.
PAN Details - You will proceed to the next page where you have to enter the details of your PAN card. As this step forms a very important part of the form filling process, make sure to put in the right as well as the same information as mentioned in your PAN.
Payment - Now, you will be directed to the payment page where you can choose any mode (net banking or UPI) to pay the charges. Complete the payment and switch back to Zerodha's site.
Sharing The Aadhaar Details - Please note that in order to get through this step it will be convenient if you have Digilocker. It is a platform launched by the Ministry of Electronics & IT that enables you to store scanned copies of necessary documents. You may use it to e-sign the uploaded documents as well. Sign in to your Digilocker account and share the details of the Aadhaar card with Zerodha.
Personal Information - Once the Aadhaar card is shared, you will be prompted to fill in the basic personal details such as background details, bank account information, etc. Again be alert while you are doing this step.
In-person Verification (Ipv) - Friends for this step, you will require a white paper to write down your OTP. Sit still, hold the placard with the OTP written on it and pose in front of your webcam. Finally, click on the save the IPV tab and move forward.
E-signature - With Aadhaar it is hassle-free to e-sign such forms. After you have e-signed with Aadhaar, upload the soft copies of the documents mentioned in the former part of the blog with utmost care.
Check The Form - It is now time to thoroughly inspect each and every detail you mentioned in the form for opening a Demat account. You will be taken to the NSDL website where you will have to log in using your mobile number or email ID. After a successful login, the form will be displayed on the screen. Vigilantly check the form.
Final Step - As a final step, you will have to e-sign the application form which can be done through Aadhaar number. Lastly, get back to your dashboard.
Note: Zerodha provides the option to have a nominee as well. Thus, if you wish to add a nominee simply, download the nominee form available on your dashboard and fill in the necessary details.
If you want to understand each step in an elaborative way, you can read the blog on How to open a Demat account.
The gist of account opening charges at Zerodha can be accessed through the following table
Zerodha’s website or app will prompt you after they have processed the form. Once you get the heads up from them, you can begin your investment journey with a few clicks.
So, do not get intimidated by tons of paperwork or the idea of visiting the broking house when you have platforms like Zerodha to make investing a tranquil experience.
Cheers to investing!