Documents required for open a DEMAT Account

 To open a demat and trading account, you need to submit these documents:

• Identity proof. PAN card is mandatory (ensure your photo and signature on the card are visible)
• Address proof (any one of these) ...
• Income proof (any one of these) ...
• Signature on white paper. ...
• Bank proof (any one of these) ...
• Photograph.

 

The procedure to open a Demat Account is fairly uniform across financial institutions which requires a standard set of documents before you get to trade in shares with the help of your broker. Here’s a quick checklist of all the documents required to open a Demat Account.

·         Proof of identity

·         a) PAN card
This is mandatory for every investor, except those exempt from PAN card. An admissible proof of identity should have a valid photograph of the applicant on it.

·         b) UID or Unique Identification Number.

This could be your Adhaar or Passport or Voters card.

·         c) Identity (with applicant’s photo) attesting document issued by any of the following agencies:

·         Central or State Government

·         Regulatory bodies

·         PSU companies

·         Scheduled commercial banks or public financial companies

·         Universities

·         Professional bodies like ICAI, ICWAI, among others can issue it for their members.

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·         Proof of income

·         ITR copy

·         Photocopy of Audited annual accounts (should have been audited by qualified CA)

·         Salary slip

·         Statement of Demat Account with legitimate DPs

·         Cancelled personalized cheque

·         Bank account statements for last 6 months

·         Documents to substantiate ownership of assets.

·         Power of Attorney or POA

Along with the other documents you will also need to sign agreement papers like the Power of Attorney given to the broker for transfer of securities to settle margins, for settlement of trades and transfer of funds from your account. The POA document has your demat and bank details. It is important to note that it must be given out in the name of the brokerage and not in the name of its employees.

A Demat account is similar to any other bank account, except that it is used to hold securities and other financial instruments. As the procedure to open demat account online is almost the same across different firms and institutions, the list of mandatory documents required to register the account is also the same. The different types of documents required for opening a Demat account are:

1. Proof of Identity (POI) (Eg.: Driving license)
2. Proof of Address (POA) (Eg.: Passport)
3. Proof of Income (For trading in derivatives such as F&O) (Eg.: Copy of ITR Acknowledgement)
4. Proof of Bank Account (Eg.: Cancelled cheque)
5. PAN Card
6. 1 to 3 passport size photographs

Here is the detailed list of documents that are required to open a Demat Account.

Proof of Identity (POI): List of documents admissible as Proof of Identity:

1. PAN card with a valid photograph. This is a mandatory requirement for all applicants except those who are specifically exempt from obtaining PAN (listed in “Exemptions/Clarifications” to PAN section)
2. Unique Identification Number (UID) (Aadhaar/ Passport/ Voter ID card/ driving license)
3. Identity card/document with applicant’s photo, issued by any of the following: Central/State Government and its Departments, Statutory/Regulatory Authorities, Public Sector Undertakings, Scheduled Commercial Banks, Public Financial Institutions, Colleges affiliated to Universities, Member IDs by Professional Bodies such as ICAI, ICWAI, ICSI, Bar Council etc. and Credit Cards/Debit Cards issued by banks.