Documents Required To Open Demat Account

Eligibility to Open a Demat Account

In India, both individuals and enterprises can open a Demat account. An individual is eligible if they are:

• A resident individual
• Non-resident of India (NRI)
• Minor (with parents or a guardian)

Both minors and adults can open demat account free as there is no minimum age restriction in India. However, the account can be opened and handled by parents or a designated guardian until the child reaches 18 if the account holder is a minor.

Besides individuals, corporate entities and enterprises are also eligible to open a Demat account. Non-individuals from the following groups are also eligible:

• Corporate entities
• Partnership business
• Limited Liability Partnership (LLP)
• Registered/unregistered trusts
• Registered/Unregistered societies
• An Association of Persons (AOP)

Investors must satisfy certain requirements in order to be eligible to open a Demat account. Account opening normally requires proof of identification (such as a PAN card), proof of residence (such as an Aadhaar card or a passport), and proof of income.

Types of Documents Needed for Demat Account Opening

The process of opening a Demat account involves identity, address, income, and bank account verification. For every verification, you will need to present certain documents. Additional documents might be needed for non-residents, minors, and non-individuals. These documents are crucial for completing the KYC (Know Your Customer) formalities and verifying the authenticity of the account holder.

• Proof of identity  
• Proof of address
• Proof of income
• Valid Proof of Bank Account
• A recent passport-size photograph

List of Documents Required for Identity Verification

Here are most of the Documents that can qualify as your Identify Proof:

• Permanent Account Number (PAN) Card
• Valid government-issued Aadhaar Card
• Valid Driving License
• Voter Identification Card
• Ration Card
• Passport
• University-affiliated college credit cards or debit cards
• Member IDs issued by ICAI, ICSI, ICWAI, or the Bar Council
• Other identification cards issued by:

1. The State or Central Government of India
2. Public Sector Undertakings (PSUs)
3. Statutory Bodies
4. Scheduled Commercial Banks and Financial Institutions
5. Public Financial Institutions

List of Documents Required for Address Verification

The following documents are accepted as proof of address for opening a Demat account:

• Passport
• Ration card
• Voter ID card, Aadhar card, Driving License
• Registered Lease or Sale Agreement of Residence
• Utility bills (electricity, water, gas) not older than three months
• Insurance copy
• Bank statements or passbook (not more than three months old)
• Address proof issued by government or statutory authorities, banks, public financial institutions, universities, colleges, and professional bodies like ICAI, ICWAI, ICSI, Bar Council
• Self-declaration of new address by a high court or supreme court judge
• Address proof in the spouse's name is also acceptable

List of Documents Needed for Proof of Income Verification

The following documents are accepted as proof of income when opening a Demat account:

• Salary Slips: Recent salary slips or certificates issued by the employer.
• Income Tax Returns (ITR): A copy of filed income tax returns and income computation.
• Form 16: Details income and taxes deducted at source (TDS) issued by the employer.
• Bank Account Details: Including bank name, branch, account number, and IFSC code for fund transfers.

Documents Required to Open a Demat Account for a Minor

The following documents are typically required to open a Demat account for a minor:

• Proof of Identity: PAN card of the minor, PAN card of the guardian, and a recent photograph of both the minor and the guardian.
• Address Proof: Aadhar card of the minor and guardian, utility bill, ration card, bank passbook of the minor, and bank passbook of the guardian.
• Income Proof: Not applicable unless the minor wants to trade in the derivatives segment, but bank details of the guardian are required.
• Photograph: Of the minor and the guardian.

The minor's PAN card and Aadhar card must be linked together. Additionally, a double KYC procedure should be conducted where the minor's Aadhar and guardian's PAN card is submitted along with their respective linked documents.

Note: Indian government also made it complusory to link Aadhar card with demat account, which is applicable to every invester.

Attestation of Documents Required to Open a Demat Account

Proof of address, identity, income, and bank account are required to be attested. The documents must be attested with the name, designation, and seal affixed to a copy of the relevant document. The list of individuals who are authorized to attest to your proof is as follows:

• A notary public
• Scheduled commercial bank's authorized officials
• Any public sector Indian bank's branch manager located in your residence
• Any court magistrate or judge
• An Indian Embassy or the Consulate General

An NRI who wishes to register a demat account must pick between non-resident external or non-resident ordinary. The documents needed are stated below:

• Proof of your Indian address for the NRO account
• Foreign address proof (for NRE and NRO)
• RBI-issued Portfolio Investment Scheme (PIS) letter with a copy of your PAN card
• Proof of bank, indicating NRE or NRO savings account

Conclusion

Your account will be opened after all of the necessary paperwork has been submitted, validated, and reviewed by the appropriate departments. To expedite and simplify the account opening process, ensure that you provide proper documentation.

After you have registered a Demat account, you may examine several stocks or mutual funds to begin your investment adventure comfortably.