If you are looking to invest in stocks or other securities, a Demat (dematerialised) account is required. A Demat account is an electronic account to safe keep your securities in digital form.
To open a Demat account, you need to submit copies of personal documents to ascertain your identity, address, income, and bank details.
In this blog, let us look at the list of required documents for Demat account opening.
Opening a Demat account is a simple and quick process once you submit all the required documents for demat account.
With digital transformation, you can even open a Demat account electronically without visiting any branch, in a completely paperless mode.
A Demat account can be opened with an authorised DP (Depository Participant) that can be a broker, bank, or financial institution.
DPs are regulated by SEBI and will help you open a Demat account with either NSDL or CDSL, two authorised depositories in India.
Required Documents for Demat Account Opening
You can refer to the below checklist as an exhaustive list of required documents for Demat account. The documents can vary depending on the trading segment.
- PAN Card
- Proof of Identity
- Proof of Address
- Proof of Income
- Bank Details Verification
- Passport size photo
- Applicant’s signature
Proof of Identity
- PAN Card: A PAN card is a must to open a Demat account in India with certain exceptions.
- Your photo must be clear on the PAN card and your name must match with the name in all your other documents as well as the Demat application form.
- Government issued documents: Voter’s ID card, Driving License, Aadhaar card, Passport bear unique number and are acceptable as proof of identity.
- Identity cards issued by authorised entities: Identity cards issued by authorised govt. bodies can also serve as identity proof.
- Documents issued by government or authorised entities bearing your photo serve as identity proof e.g. PAN card, Aadhaar card, voter
Proof of Address
DPs require a valid proof of your address, any of the below documents can work as one.
- Voter’s ID card
- Aadhaar card
- Ration card
- Driving License
- Utility bills (not older than 3 months)
- Current rental agreement
Bank Account Verification
- A canceled cheque or recent bank statement can validate bank account details like account type, IFSC Code, MICR code, bank account number, account holder’s name etc.
- Photograph: You need to submit a clear passport size recent photo in hard copy or scanned if you are opening a Demat account online.
Minor’s Demat Account
A minor can open a Demat account with a parent or legally appointed guardian. Investment in the minor’s name can be in the delivery segment and additional documents are required:
- Identity proof of minor and guardian like PAN card, Aadhaar card, passport.
- Address proof of both minor and guardian
- Photograph of minor and guardian
- Bank details of the guardian.
NRI Demat Account
NRIs are permitted to open Demat accounts and invest in Indian stock markets with relevant permissions. Below documents are required to open a NRI Demat account:
- Passport and visa copy
- FEMA Declaration
- PAN card copy
- Address proof in country of residence
- Bank details of the NRE or NRO bank account
- Recent photograph
HUF Demat Account
HUFs can submit following douments for Demat account opening:
- Address proof of the HUF e.g. bank statement
- PAN card of the HUF
- PAN card of Karta and address proof of Karta
- Coparcerner’s PAN card
- Bank details of HUF, canceled cheque copy of HUF’s bank account
Corporate Demat Account
To make investments in a company’s name, following key documents are required to open a demat account:
- Last two financial years’ balance sheets.
- Certified document showing the shareholding pattern of the company
- Directors documents e.g. photo, PAN, power of attorney, DIN numbers etc.
- Board resolution to open a Demat account
You can open a Demat account within minutes in a few easy steps.
Scanned or physical copies of your PAN card, identity proof, address proof, bank details, canceled cheque and photograph are the key douments required to open a Demat account.
From the comfort of your home you can submit scan copies, verify your details via Aadhaar and start investing.
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- Can I open Demat account without bank statement?
Yes you can open a Demat account without a bank statement but you need to provide bank account proof e.g. a canceled cheque to verify bank name, IFSC code, account holder’s name, MICR etc.
Bank statement is required as income proof if you trade in certain segments like derivatives.
- Is proof of income required for Demat account?
No, proof of income is not mandatory to open a Demat account. Only if you trade in certain segments e.g. derivatives, you need to provide an income proof.
- Is it mandatory to file ITR for Demat account?
No, it is not mandatory to file ITR for Demat account. You must provide your PAN card copy, proof of identity and address, bank account proof and photograph to open a Demat account.
- Can a housewife open a Demat account?
Yes, anyone can open a Demat account irrespective of income status. Copy of PAN card, identity, address proof, bank account proof & details are the required documents to open a demat account for any indivudual.
- What happens if KYC is not done in Demat account?
If KYC is not done in a Demat account, it will be deactivated and frozen. You will not be able to transfer in or transfer out any securities till required KYC documents are submitted to DP and KYC is updated.