Can I Open Demat Account Without PAN Card

The first step towards your stock market journey is to open a demat account. But what are the necessary documents required for a demat account? Do you need to have all the documents? Can I open Demat account without PAN card? Is demat account safe without PAN?

If these are the questions running through your mind, then you have reached the right place. In this article, we will talk about the possibilities of opening a demat account without a PAN card.

So, first comes first, can I open a demat account without a PAN Card?

The answer is very simple. No, you can't open a demat account without a PAN card as it is a mandatory document.  

Is PAN Card Mandatory For Demat Account

Yes! A PAN card is mandatory for a demat account opening. This means that if you don't possess a PAN card, the chances of you opening a demat account and starting investing in the stock market are very bleak.

In a circular dated back to 2007, SEBI made it compulsory for every individual to link their demat account with PAN card. This was irrespective of the trading segment or the capital that one plans to invest.

So, every individual has to produce a self-attested copy of their PAN card to open a demat account. Even if you wish to open a joint demat account, then the PAN card of all the individuals is required.

But why is a PAN card mandatory for a demat account?

PAN Card is a Permanent Account Number that is mandatory for every Indian citizen and is issued by the Government of India. It is important because the Income-tax department tracks all the financial transactions of an Indian individual in accordance with that.

This makes it easier for the higher authorities and also for the traders to keep a track of all the transactions. Since all the share market transactions are taxable, the PAN card becomes an important document.

An individual can open multiple demat accounts with a PAN card. So, if you are questioning, how many demat accounts can one have, the answer is as many as you want. You just have to make sure that you can’t open 2 accounts with the same broker using a single PAN card.

A PAN card serves as a unique identification number and does not change irrespective of your age, income, or your geographical location.

But the next question is, does everyone require a PAN card to open a demat account? The answer is yes. Let us understand this in the upcoming sections of the article.

Can I Open A Demat With Minor PAN Card?

If you haven’t reached the age of 18 but want to start investing in the stock market, you can do that by opening a demat account for minors. This lets the parents and the young investors plan and start the investment journey early.

But can you open a demat account with a minor PAN card?

Yes, you can. If you are opening a minor demat account, then you require the PAN card of both the minor and the major.

A minor demat account although cannot be linked to a trading account. They are not allowed to trade in the intraday or derivatives segment. The idea behind a minor demat account is to plan and invest for the long run. It is in accordance with the fact that till the time the minor becomes a major, he/she will have a strong portfolio.

So, if you want a minor demat account, make sure that you keep the PAN card of the minor as well as of the parents/guardians handy.

Can NRI Open Demat Account Without PAN Card

We talked about how all Indian citizens require a PAN card if they want to open their demat account. But what about the Non-Resident Indians? Now there are two types of demat account, that are available for NRIs in India: repatriable and non-repatriable.

But do you need a PAN card to open these accounts? Yes, you definitely do. A PAN card is mandatory for anyone looking to have a demat account in India. There are some exceptions in the cases where an NRI cannot possess a PAN card for any reason.

But in this case as well, the NRI will only get a limited-purpose beneficiary owner account and once the PAN card is produced, he can open a stable demat account. But in cases where the client fails to produce a PAN card, the account gets blocked.

So, in all, a PAN card is an absolute necessity when you want to complete the procedure of opening a demat account.

Can I Open Demat Account With E Pan Card

Now a lot of people abstain from carrying physical documents and majorly rely on digitalized formats. On similar lines, there is also an e PAN card, that is generated very quickly and the soft copy can then be used for several purposes.

You can also open a Demat account using the e-PAN card. These days majority of the stockbrokers accept this form of PAN card. It is easily accessible and available on the Digi locker app.

So, even if you don’t have a laminated hard copy of you PAN card, you can still open a Demat account in India.

Conclusion

Just like a demat account is necessary to invest in the Indian stock market, similarly, it is mandatory to have a PAN card to process that. You have to produce a PAN card even if you are opening a minor Demat account or an NRI demat account. In the cases of a joint demat account as well, you need to produce the PAN card of all the account holders.

Now if you have your PAN card, don’t delay and open a demat account with Choice today!