A Demat account is more than a facilitator for paperless investments as it offers an overall seamless experience and streamlines the investment process. These accounts have helped in eliminating the threat of theft or document forgery.
Additionally, holding a Demat account has been made a prerequisite to investment in the stock market by the Security and Exchange Board of India. Today, an investor can easily open a free Demat account with a credible trading portal.
Since Open Demat account is mandatory, read on to find a detailed list of documents that are required to open a Demat A]account.
List of Documents Required to Open a Demat Account in India
Opening a Demat account in India is a quick online process, however, keeping documents handy is a smart choice for a hassle-free experience. Here’s a list of documents required for Demat account that you will need:
- Documents to Prove Identity
This goes without saying that to open a Demat Account you will be asked to submit identity proof. This includes:
- PAN Card- A PAN card is a mandatory requirement to open a Demat Account. In addition to this, you may also have to submit a bank verification letter along with a photograph.
- Government-Issued Identity Proof- You can submit a passport, Aadhar Card, Driving License or any other identity proof issued by the government of India that has your photograph.
- Documents of Address Proof
A government-issued document of address proof is required. You can use any of the following:
- Aadhar Card
- Driving License
- PAN Card
- Voter ID
- National Population Register Letter- Accepted for offline application.
- NREGA Job Card
- Documents of Income Proof
If you are planning to trade in derivatives, you will be required to submit the following:
- A photocopy of the Income Tax Returns Slip- The slip you must have submitted at the time of filing ITR.
- Bank statement for the last six months
- Updated salary slip
- Documents of Bank Account
For bank account proof, two documents are required:
- Updated bank statement. Make sure your name and bank account number are visible.
- A cancelled cheque leaf bearing your signature.
- Additional Documents
Apart from the above-mentioned list of documents, you must keep the following things handy:
- Latest passport-size photographs. Both coloured and black and white.
- A soft copy of your signature
- Soft copies of all the above-listed documents.
How Do I Open a Demat Account?
Demat Accounts were introduced to provide a paperless investment experience with ease and convenience. Therefore, the account opening process is kept simple. Here’s how:
- Step 1:
Zero down to a Depository Participant of your choice. A depository participant acts as a mediator between the depository and investors. Make sure to choose a reputed DP to avoid any chances of fraud or forgery.
- Step 2:
Submit an application form to open a Demat Account with the necessary details and required documents.
- Step 3:
Sit back and wait for the depository participant to approve your request.
- Step 4:
Once your request is approved you will be given personal credentials- ID and password to access your Demat Account.
Wrapping Up
The process of Open Demat account in India is designed to promise a hassle-free experience. In addition to the above mentioned list of documents, the DP or brokerage platform you choose might ask you for additional documents for verification. Make sure to check the updated list from the official website.
Once you have access to a Demat account you can begin your journey as an investor. Trading platforms like Bajaj Trading offer a quick and smooth opening process. Additionally, with features like low brokerage, research assistance and secure transactions you can expect a seamless investment experience.
