Dematerialisation converts your physical shares into electronic format. You no longer need to take physical possession of share certificates that prove your ownership.However, to dematerialise your shares you need to open a demat account with a depository participant (DP), who can be a bank, a financial institution or a Securities Exchange Board of India (SEBI)-approved broker. Depository participants are intermediaries between you and the depository. The depository is responsible for maintaining your securities in an electronic form. India has two depositories: National Securities Depository Limited (NSDL) and the Central Depository Service (India) Limited (CDSL).

There are two reasons. Firstly, a demat account helps you trade and invest in a simple and seamless manner. You no longer need to get physical certificates to prove that you own the shares. It eliminates the legwork and paperwork one had to do earlier to carry out every single trade.
Secondly, you are not allowed to hold more than 500 physical shares at any given point. This is why opening a demat account becomes important. It allows you to trade without any restriction.

You need to approach a DP to open a demat account. The documents required are: PAN card, Aadhaar card, identity proof, bank account details, a residence proof and a passport-size photograph. You will need to carry original documents for verification.
A DP representative verifies the details, following which you receive an account number and a client ID. You can then access the demat account using the details provided to you. You can also open an online demat account by either filling up a form or intimating your DP. You can click here to open a demat account and take your first step in the world of stocks.

Below listed all documents submitted should be self attested.
1. Pan card copy
2. Proof of residence - copy of aadhar card, ration card, passport, driving license, bank statement not more than 2 months old
3. Saving account detail - cheque leaf with name printed on it or 2 copies of pass book first page & latest transaction entry or latest bank statement
4. Latest passport size photograph - 2 copies.
Additional document required for F&O trading (Any one of the following)
1. Acknowledged copy of ITR
2. Bank statement for last 6 months
3. Latest salary slip
4. Copy of form 16 in case of salaried individuals
5. Net worth certificate duly certified by chartered accountant

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