Can I Open Demat Account Without Aadhar Card?

It is a stated fact that an individual needs a Demat account to start investing in the share market, but what if you don’t have an Aadhar card? Can I open a Demat account without Aadhar card? Is it really a mandatory document?

If you are looking for the answers to these questions, then you have reached the right place. Let us have a look at whether an Aadhar card is necessary to open a Demat account.

Is Aadhaar Card Mandatory for Demat Account

The Aadhar card was introduced as a unique identification number and has become a necessity for almost everything in India. But if you are looking to open a Demat account, is it mandatory to have an Aadhar card?

The answer is Yes. You cannot open a Demat account if you do not possess an Aadhar card. Just like a PAN card is an essential document in the opening process, the Aadhar card has also become one.

The Securities and Exchange Board of India (SEBI) made it crucial for every investor to get their Aadhar cards linked with their Demat account till September 30, 2021.

It is a mandatory document because it is valid proof and can be used to prevent fraud activities across the share market. In addition, this gives some authenticity to the investors and provides a depository with participant security that the investor is a valid individual.

The NRIs (Non-residential Indians) are exempted from the submission of an Aadhar card.

Apart from this, it is also necessary that you have your Aadhar card linked to your mobile number to complete the KYC efficiently.

But in case your Aadhar card is not linked with your mobile number, you can still get a Demat account through e-mudra.

It generally increases the Demat account activation time but allows an investor to open a Demat account without an Aadhar card OTP.

Now that you know that it is necessary to have an Aadhar card to open a Demat account, let us have a look at the process involved.

How to Open a Demat Account

In the world of digitalization, where everything is online, you can have Demat account opening online too? Again, Choice gives you a straightforward account opening process and that too from the comfort of your own house.

So, if you have an Aadhar card, you can open a Demat account with the following steps.

• Go to the website and click on the option to open a Demat account.
• Enter your mobile number, city, occupation, and e-mail address.
• After this step, enter your PAN card details and date of birth.
• You will now receive 2 OTPs, one on your mobile number and the other on your e-mail address. Verify both the OTPs.
• Enter your name, gender, and marital status.
• Now enter the income proof, and in the next step, you need to enter your Aadhar card number to complete the KYC.
• After successfully verifying, you can now choose your demat account AMC charges plan according to your convenience. Choice gives you an option to choose from 3 different AMC plans.
• Verify your details, and then you will be redirected to an e-sign on the NSDL website. Here you will again have to enter your Aadhar card details.
• Your account will get activated within 4 hours of successful verification and submission of documents.

It is therefore clear that you compulsorily need an Aadhar card for a Demat account. But apart from these, there are other mandatory documents as well. Let us quickly have a look at them.

Documents Required for Demat Account Opening

The various documents required for Demat account opening are as follows.

• Proof of Identity (PAN card, Aadhar card, driving license, etc.)
• Address Proof  (Aadhar card, utility bills, voter ID, driving license, rent agreement, etc.)
• Proof of Income (compulsory in the case of derivatives)
• Bank details
• Photograph
• Signature

If you have all these documents, you can easily open your Demat account.

Conclusion

We can conclude that it is absolutely mandatory to have an Aadhar card if you want to open a Demat account in India. This is in accordance with the SEBI guidelines.

It is also beneficial if you link your mobile number to your Aadhar card. This allows you to ease the process of demat account opening.

So, if you have your Aadhar card and all the other documents ready, open your Demat account today and start trading!