Documents Required for Demat Account Opening

You need to row your boat to reach the other end of the lake. Similarly, you need a demat account to be an active participant in the stock market. Now, there are certain documents required for demat account opening. If you keep these documents handy, your work will become easier.

In this article, let us talk about the specific documents that you need to open a demat account.

Documents Required for Opening a Demat Account

If you want to start share market investment, the first thing that you need to do is open a demat account. It is like a pass for the gateway to profits.

The list of required documents is not something way out of the league. This makes sure that a customer does not have to face any troubles while opening a Demat account.

Nowadays, you can complete the process of Demat account opening online as well, sitting at the comfort of your house.

But still many of the investors think, “Can I Open Demat account without Aadhar Card?”

Are you too looking for the complete checklist of documents?

Let’s make it simpler for you!

Here is the complete list of documents required for Demat account opening in India:

• Proof of Identity
• Address Proof
• Income Proof
• Bank Details
• Photograph
• Signature

The requirement of documents can change according to the desired trading segment as well. Let us now discuss these documents in detail.

Proof Of Identity

It is essential that you submit proof of identity when opening a Demat account. There are various documents that are accepted as proof of identity.

1. PAN Card– Your PAN card with a clear photograph is an absolutely mandatory document required for Demat account opening. It is only exempted in certain conditions, which include,

• If someone is a resident of Sikkim
• If the transactions are done by or on behalf of the state government or central government.
• The transactions are done by the official that the court selects.
• The entities (UN) are not required to file income tax returns in India.
• Institutional clients are also exempted from producing a PAN card.

2. Particular documents that have a unique identification number. This can include your Aadhar card, driving license, Voter ID card.

3. An identity card issued by the central or state government authorized or regulatory bodies. This card should have a clear picture of the applicant.

You can valid documents as your identity proof and then move to the next step, which is submitting proof of address.

Proof of Address

It is mandatory to provide proof of address to the majority of stockbrokers in the nation. There are various options that serve as valid proof of address when you are opening a Demat account.

• Passport
• Aadhar Card
• Voter ID card
• Driving Licence
• Ration Card
• Utility bills (electricity bills, telephone bills, gas bills, water bills, etc.) Please note that these bills should not be older than 3 months.
• The identity card has a clear mention of your address.
• A valid rent/sale agreement.

Note- Your Aadhar card should be linked to your mobile number so that you can receive the necessary OTPs to complete your KYC.

Income Proof

If a trader wants to trade in the derivatives segment, it is crucial to submit income proof. Wondering why?

The options and futures are a little riskier place when compared to the equity segment. This is because it involves a good amount of money and is also a high risk.

Therefore, it is mandatory for a stockbroker to check whether the trader has a good source of income to take the consequences in case of situations going down south.

You can submit the following documents like your income proof.

• You can submit a copy of the acknowledgment slip of your Income Tax Return (ITR).
• A certificate of your net worth. A Chartered Accountant should verify this.
• Recent Salary Slip.
• Form 16.
• If you already have another Demat account, you can submit the statement of your holdings.
• Bank statement of 6 months.

Bank Details

In the process of opening a Demat account, you need to provide your bank details. It requires you to enter your account number and your IFSC code.

In some cases, you also have to produce a canceled cheque. Just make sure that your name, the name of your bank, account number, and IFSC code are clear in the cheque.

The canceled cheque helps a stockbroker to validate all your bank details properly.

Photographs

Apart from the above-mentioned documents, you need to submit your recently clicked passport size photographs as well.

The picture should be clear and recent. The number of photographs can vary from one stockbroker to another.

If you are opening an account online, you need to upload a clear scanned passport-sized picture. However, there are defined sizes of the same. Therefore, make sure that you check the necessary size prescribed by your stockbroker and then resize your image.

Signature

The last document that you need is a signature. You should have a scanned copy of your signature if you are opening a Demat account online.

Make sure that the signature is taken on blank white paper. After this, your verification will be successful, and your account opening process will proceed.

You can easily open your Demat account with Choice by submitting the crucial documents. It only takes around 4 hours after the submission of your documents to get an activated Demat account.

In case of any issues with the account opening process, the Choice support team can call you and guide you through the account opening process.

These documents need to be uploaded for online application or you can send the self-attested copies of these along with demat account opening form.

Documents Required for Minor Demat Account

Have you not turned 18 but want to earn money from the share market? Do not worry because you can now open a minor Demat account in India.

It is a perfect option for people who are looking to open a Demat account in the name of their children to ensure their trading career.

A minor can, although only trade in the delivery segment, there are certain documents required to open a minor Demat account.

Let us have a look at the documents required if you want to open a minor Demat account.

• Address proof (Aadhar card of the minor, Aadhar card of the parent/guardian/ utility bills, ration card, etc.)
• Identity proof. This has to have PAN of both the minor and guardian compulsorily. Other than this, a photograph of the minor is also required.
• Income proof. As stated above, the minors cannot trade in the intraday segment because they don’t get a trading account. This is the reason that the minor does not have to give income proof.

But the bank account details of the guardian are required when opening a Demat account of the minor.

These are all the basic documents that are required for the Demat account opening of a minor.

Documents Required for Opening NRI Demat Account

Are you an NRI and wondering where to open a Demat account? So, here Even if you are not a resident of India, you can still open a Demat account in India. It is called an NRI Demat account. First, let us look at the certain documents required to open an NRI Demat account.

• A photocopy of the passport and visa
• PAN Card
• Address proof (these can be the utility bills of the country that one lives, a sale/rent agreement)
• Photographs
• A cancelled cheque of either the NRI or NRO bank account.
• FEMA declaration

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

Documents Required for HUF Demat Account

A Hindu Undivided Family has equal rights to invest in the Indian market. Therefore, all the securities in the Demat account are in the name of the HUF. Other than this, the transactions are done with the bank account of HUFs and PAN cards.

Let us have a look at what are the documents required to open a HUF Demat account.

• HUF PAN card. This should have a clear signature and seal.
• Address proof of HUF- Bank statement, passbook with signature, and seal.
• Apart from this, you also need a copy of the Karta PAN card and address proof. Take note that this should be self-attested.
• A photocopy of Coparcener PAN card.
• Canceled cheque in which the details of the HUF and the account number along with IFSC should be clearly visible.
• Income proof- Required only when you want to trade in the derivatives segment. You can provide your 6 monthly bank statement, statement of net worth, or an ITR acknowledgment slip.

Documents Required for Corporate Demat Account

Apart from the individual Demat accounts, you can also opt-in for the corporate Demat account.

The documents that you will require to open a corporate Demat account are as follows.

• Balance Sheets– You need to submit a photocopy of the balance sheets of the last 2 financial years.
• Produce proof of the shareholding pattern of the company. This document has to be certified by the managing directors or any person in ultimate authority.
• Passport-sized photograph of the directors. This should contain all the details of POA, PAN, POI, PAN, DIN numbers.
• You also need a copy of the board resolutions.
• Signatures of all the authorized bodies.

Conclusion

The documents required for Demat account opening are not very difficult to arrange, and you can keep them handy to make the process easier and to lessen the Demat account activation time.

You can open a minor Demat account, NRI Demat account, HUF Demat account, and also corporate Demat account. The basic documents are the proof of identity, address proof, and bank account details.

If you have all the documents, take a step towards investment and open your demat account today!