LIST OF DOCUMENTS TO OPEN A DEMAT ACCOUNT

 LIST OF DOCUMENTs TO OPEN A DEMAT & TRADING ACCOUNT

 

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

Proof of Address (POA): List of documents admissible as Proof of Address:

1.    Passport/Voters Identity Card/Ration Card/Registered Lease or Sale Agreement of Residence/Driving License/Flat Maintenance bill/Insurance Copy

2.    Utility bills like Telephone Bill (only landline), Electricity bill or Gas bill – Not more than 3 months old

3.    Bank Account Statement/Passbook – Not more than 3 months old

4.    Self-declaration by High Court and Supreme Court judges, giving the new address in respect of their own accounts

5.    Proof of Address issued by any of the following: Bank Managers of Scheduled Commercial Banks, Scheduled Co-Operative Bank or Multinational Foreign Banks/Gazetted Officer/Notary public/Elected representatives to the Legislative Assembly or Parliament/Documents issued by any Government or Statutory Authority

6.    Identity card/document with address, 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 and Professional Bodies such as ICAI, ICWAI, ICSI, Bar Council etc., to their Members

7.    For FII/sub account: Power of Attorney document given by FII/sub-account to the Custodians (which are duly notarized and/or apostilled or consularised) that mentions the registered address

8.    The proof of address in the name of the spouse may be accepted

Note: Documents having an expiry date should be valid on the date of submission.

Proof of Income: List of documents admissible as Proof of Income*

1.    A photocopy of the Income Tax Return (ITR) Acknowledgement slip submitted to the Income Tax Department during tax filing

2.    A Net Worth Certificate certified by a Chartered Accountant; alternatively a photocopy of the Annual Accounts duly audited by a qualified Chartered Accountant

3.    Proof of Salary in the form of a recent Salary Slip or relevant document which proves income or net worth like form 16

4.    A statement of Demat account holdings with an eligible Depository Participant

5.    Current bank account statement reflecting the income history of the client for the past 6 months

6.    Other documents that substantiate ownership of assets through self-declaration along with documents supporting the claim

Exemptions/Clarifications to PAN*

1.    In case of transactions undertaken on behalf of Central Government and/or State Government and by officials appointed by Courts e.g. Official liquidator, Court receiver etc.

2.    Investors residing in the state of Sikkim.

3.    UN entities/multilateral agencies exempt from paying taxes/filing tax returns in India.

4.    SIP of Mutual Funds up to Rs. 50,000/- p.a.

5.    In case of institutional clients, namely, FIIs, MFs, VCFs, FVCIs, Scheduled Commercial Banks, Multilateral and Bilateral Development Financial Institutions, State Industrial Development Corporations, Insurance Companies registered with IRDA and Public Financial Institution as defined under section 4A of the Companies Act, 1956, Custodians shall verify the PAN card details with the original PAN card and provide duly certified copies of such verified PAN details to the intermediary.

Note: Sufficient documentary evidence in support of such claims to be collected.

List of people authorized to attest the documents:

1.    Notary Public, Gazetted Officer, Manager of a Scheduled Commercial/Co-operative Bank or Multinational Foreign Banks (Name, Designation & Seal should be affixed on the copy)

2.    In case of NRIs, authorized officials of overseas branches of Scheduled Commercial Banks registered in India, Notary Public, Court Magistrate, Judge, and Indian Embassy/Consulate General in the country where the client resides are permitted to attest the documents

Apart from these documents, the Depository participant or your broker might ask you to present additional proof for identity, address, and income. Once all the documents are submitted, verified, and checked by the concerned departments, your account will be opened.