In some ways, a Demat account is similar to a bank account. If you’re opening a Demat account online, you’ll need to log in to the DP’s (brokerage/bank) website and submit required details in proper manner. The documents required for Demat Account are usually the same for brokers, banks, and other financial institutions that function as an digital trading platform.
Table of Contents
Documents Required for Demat Account
Before talking about documents required for Demat Account. Let’s check out what kind of information you need to provide to open a demat account:
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Personal Information
In the required format, provide photo id and proof of residence. When you submit them with your PAN and other papers, most brokers/banks pre-fill them. Verify and double-check them.
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Financial Information
To open a Demat account, you’ll need to provide your bank account number and IFSC code. However, there is no need to be worried because the information is safe with the brokerage. You’ll also have to provide information about your income.
You will also have to upload your current photograph of yourself in addition to the documentation for the demat account.
Type of Documents Required for Opening Demat Account
These major types of documents for demat account, You need to upload to open a Demat account:
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Proof of Personal Identity
Personal identity verification will be allowed in the form of a driving licence, voter ID, UID or Unique Identification Number, and so on.
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Address Proof
Documents such as a passport, voter’s ID, Aadhaar, ration card, and others can be used as evidence of address when opening a Demat account.
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Income Proof
Trading in derivatives, including F&O, involves this. A copy of the ITR Acknowledgement, for example, can be provided.
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Bank Account Details
For this purposes, a cancelled cheque leaf can be Uploaded.
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Pan Card
A PAN card is required to open a Demat account with any bank or broker (except for individuals who are excluded from obtaining a PAN; see the ‘Exemptions/Clarifications’ on Check out the list below).
List of Exemptions
- In the case of transactions carried out on behalf of the Central Government and/or the State Government by officials appointed by the courts, such as the Official Liquidator, the Court Receiver, and so on.
- Those who live in the state of Sikkim.
- The United Nations and global organisations are excluded from paying taxes and filing tax returns in India.
- Mutual Fund SIPs up to Rs. 50,000/- each annum
- In the scenario of institutional clients, such as FIIs, MFs, VCFs, FVCIs, Scheduled Commercial Banks, Multilateral and Bilateral Development Financial Institutions, State Industrial Development Corporations, IRDA-registered Insurance Companies, and Public Financial Institutions as defined by section 4A of the Companies Act, 1956.
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Photo
You need to upload your Current photo while opening a Demat account.
Note:
Please double-check that the papers are absolutely valid as of the filing date and that they haven’t expired.
List of Documents you can use for Personal Identity for Demat Account
These are the documents you can use for Personal Identity. However, Pan card is mandatory & you can use any other one with pan card.
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Par Card
Except for individuals who are specifically exempt from getting a PAN (as noted in the Exemptions/ Clarifications to PAN List about), this is a necessary criterion for all people applying. A clear photo of the applicant should be included in any admissible proof of identity.
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Unique Identity number
It’s feasible that you can use your Aadhaar card, passport, voter ID card, or driving licence for documents required to open demat account.
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Other Ids
You can use below listed ids as well :
- Central or State Ids of Indian Government and its departments
- Statutory/ Regulatory bodies Ids of Indian Government
- Public Sector Undertakings (PSU organisations)
- Scheduled commercial banks or public financial firms
- Universities / Colleges affiliated to Government universities
- Professional organisations such as the ICAI, ICWAI, ICSI, and the Bar Council, among others, can issue member IDs.
List of demat account documents you can use for Address Proof for Demat Account
These are the major documents you can use:
- Your Valid Passport
- Voters ID card with clear picture
- Registered sale or lease agreement of your home
- Driving licence with clear picture
- Your Maintenance bills
- Insurance Documents
- Your Utility or mobile bills
- Your Electricity bills (Recent one which is not more than 3 months older)
- Your Passbook or bank account statement
- Proof of address verified by bank managers of scheduled banks, scheduled cooperative banks, a gazette officer, a notary public, local legislative assemblies (MLAs), and authorized members of parliament (MPs)
List of Documents you can use as a your Income Proof
These are the major documents :
- A photocopy of the receipt note for the Income Tax Return (ITR) filed to the Income Tax Department during income tax filing.
- Proof of Salary in the form of a recent pay stub or other appropriate document demonstrating income or net worth, such as Form 16.
- A Chartered Accountant’s Net Worth Document is valid.
- Current bank account statement showing the client’s income history over the previous six months.
- A statement of your Demat account holdings with a Depository Participant who is authorized.
- Other documents that demonstrate asset ownership via self-declaration, as well as supporting documentation.
- Documents used to prove asset ownership.
POA (Power of Attorney)
Along with the other paperwork, you will be required to sign agreement papers such as the Power of Attorney issued to the broker for the transfer of stocks to settle margins, trade settlement, and money transfer from your account.
Your Demat and bank account information can be found on the POA agreement. It’s crucial to remember that it has to be given out in the name of the firm, not the individual employee.
List of People who are authorized to attest the documents if required
The following individuals are authorized to certify paperwork for the opening of a Demat account:
- A Notary Public, a Gazetted Officer, a Manager of a Scheduled Commercial/Cooperative Bank, or a Multinational Foreign Bank. Make sure that the title, profession, and office seal are all included on the copy.
- Authorized officials of overseas offices of Scheduled Commercial Banks registered in India, Court Magistrate, Judge, Notary Public, and Indian Embassy/Consulate General in the nation where the customer resides can attest the paperwork in the case of Non-Resident Indians (NRIs).
Note:
- In regard to these documents, the Depository participant or your bank/broker may request other papers such as evidence of identification, address, or income.
- After all of the paperwork have been filed, validated, and examined by the appropriate departments, your DP will open your account, allowing you to start trading.
Who is involved in the process of opening a Demat account?
Besides the two depositories in India, the National Securities Depositories Ltd (NSDL) and the Central Depository Services Ltd (CDSL), via which the stocks are held by the multiple depository participants, other parties engaged in Demat account transactions are Depository Participant (DP) or authorized stockbroking firm; financial institution, i.e. the bank.
Also clearing houses, which handle the clearing of the stocks, National Securities Clearing Corporation Ltd (NSCCL) under NSE and Indian Clearing Corporation Ltd (ICCL) under BSE; and stock exchange.
Benefit of Demat Account
One of the most significant benefits of opening a Demat account is the little risk it entails. Physical assets carry a risk of theft, loss, or damage, which can be fully eliminated by opening a Demat account, which allows investors to hold all of their investments in electronic form.
It facilitates the holding of certificates, as preserving physical papers is a time-consuming task. It also saves time and money because there is no paperwork to deal with. You can also avoid additional charges such as stamp duty, which is paid when trading actual shares.
Conclusion
Documents required for demat account are quite simple & basic which everyone generally keeps with them. You can Open Demat accounts in few seconds nowadays in India. Click here to open account with Zerodha Best Stock Broker of India.
This is all from our side regarding Documents required for Demat Account. Although, if you have any doubts you can just comment below for clarification.
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