Documents required for opening a Demat account
Opening a Demat account is a must if you want to participate in the Indian stock markets. A Demat account is a virtual account which holds your assets (shares, bonds, ULIPs etc) in dematerialised i.e. electronic form. This aids in quick settlement and is one of the catalysts for the growth of online share trading in India. Everytime you sell shares, your Demat account is debited. Similarly, whenever you buy shares, your Demat account is credited. In India, Demat accounts are held by two central depositories, namely, the National Securities Depository Limited (NSDL) and the Central Depository Services Limited (CDSL). You can open a Demat account through a depository participant i.e., your broker, which serves as a link between you and the depository. The process of opening a Demat account is simple, seamless, and swift. You can open a free Demat account online to start your investment journey. However, it is important to keep all the documents required for opening a Demat account handy so the application process is completed in a hassle-free manner.
If you are wondering what documents are required for a Demat account, the list is as follows:
Valid proof of identification (PAN card is mandatory)
Valid proof of address
Valid proof of income
Valid proof of bank account
Recent passport-sized photographs
List of documents admissible as proof of identity while opening a Demat account:
Permanent Account Number (PAN) Card
Valid government-issued Aadhaar Card
Valid Driving License
Voter Identification Card
Passport
Other identification cards issued by:
The Government of India
State Governments
Public Sector Undertakings
Statutory Bodies
Scheduled Commercial Banks and Financial Institutions
Professional Organisations
Universities.
List of documents admissible as proof of address while opening a Demat account:
Passport
Aadhaar Card
Driving License
Voter Identity Card
Ration Card
Lease agreement or registry of your house
Insurance policy issued in your name (comprising your address)
Electricity bills, gas bills, or landline bills (for a period not earlier than the preceding three months)
Last three months' bank account statement or passbook
Proof of address in a document issued by the Central Government, State Governments, Public Sector Undertakings, Statutory Authorities, Universities, Scheduled Commercial Banks and Financial Institutions
Self declaration of address (only applicable in the case of the judges of the Honourable Supreme Court and High Courts)
Proof of address of your spouse (if applicable)
List of documents admissible as proof of income while opening a Demat account:
Recent Salary Slips
Form 16
Bank account statement of the past six months, comprising income details
Income Tax Return acknowledgement form (copy)
Net worth certificate issued and authenticated by a Chartered Accountant
Demat account statement from an authorised depository participant, detailing your Demat holdings
Statement of audited annual accounts, issued by a Chartered Accountant (copy)
Self declaration of the ownership of any assets, supported by the relevant documents
Exemptions/ Clarifications to PAN Submission
Although it is mandatory to submit your PAN card details while opening a Demat account, the following are exempt from this mandate:
Residents of Sikkim
Transactions conducted for court-appointed officers
Transactions conducted for the Government of India or any state government
United Nations entities which are not required to file taxes in India
Multilateral agencies exempt from tax filing in India
While the process of opening a Demat account is simple in itself, you must not open a Demat account with any random broker. You must look at various charges levied by the broker - account opening fee, brokerage, account maintenance fees etc. The lower these charges, the higher will be your take home income. This is where m.Stock’s free demat account stands apart. When you open a free demat account with m.Stock, all your orders are brokerage free for l delivery, IPO and mutual funds. So, make your trades brokerage free. Open m.Stock free demat account now!
Read Also: Eligibility criteria to open a Demat account
Read Also: Step-by-step Process for Opening Demat Account Online