How to open Demat account and online trading account in India?

For Indian stock market you need to do the following - 

• First apply for a PAN (Permanent Account Number) Card. You will need this to open a demat account.
• Now you have to apply for a Demat account. Demat stands for dematerialized.  Its like a bank account but instead of money we keep shares(in electronic form) in this account. Now to open demat account you can either go to banks like SBI, AXIS, ICICI or stock broking firms like Karvy, Bajaj Capital etc. There are 4 major fees involved in this process - account opening fees, annual maintenance fees, custodian fees and transaction fees. So read the details carefully. Now you are ready to buy and sell shares in Indian market. All you have to do is to contact your broking firm and ask them to buy/sell shares in/from your account.
• If you are an active trader then you may want to do transactions on your own. So apply for an Online Trading account. Its provided by most of the banks and stock broking firms. Some fees is also involved with this so read details carefully.
• Before opening demat or online trading  account with any bank/firm check their services. If you are an active trader then I will suggest you to open your account with some major broking firms like Karvy, AnandRathi, ShareKhan etc. If you are not an active trader and just want to try it then go for SBI. They have less fees as compared to other firms.

Please read my other posts for educating yourself about stock markets.