Know the Documents Required to Open a Demat Account Online

In India, you need a Demat account to buy and sell securities like bonds, equities, mutual funds, etc. It holds your shares and other forms of securities in digital format and gives you access to them.

To open a Demat account online, you need to choose a Depository Participant (DP), generally a stockbroker, a bank or other financial institution, provide the necessary documents and open the account.

Read this article to learn the necessary documents required for Demat account opening process and other relevant information.

Eligibility Criteria to Open a Demat Account Online

Before opening a Demat account and investing, you must meet a few eligibility criteria. Below are the requirements to be eligible for a Demat account:

1. To create a Demat account as an individual retail investor, you must be 18 years of age or older.
2. Non-resident Indians can also open a Demat account in India with valid documents.
3. Minors with a PAN card are eligible to create a Demat account. However, until the minor turns 18, the account will be operated by their legal guardians or parents.
4. Corporate entities and partnership firms are eligible for the account.
5. Limited Liability Partnership (LLP), Association of Persons (AOP) can have a Demat account.

List of Documents Required for Opening a Demat Account

If you are a first-time investor or switching to a new DP, check out the following documents required for Demat account:

• Documents Needed for Demat Account as Identity Proof

You can choose from a range of documents issued by a valid institution as an identity, as mentioned below:

1. You can produce your PAN card with your updated photograph as ID proof.
2. You can provide your Aadhaar Card, voter ID or driving licence as proof.
3. Some DPs may consider a ration card as valid ID proof, provided it has your recent photograph.
4. A Central or state government-issued ID card with your latest photograph acts as ID proof.

• Documents Needed for Demat Account as Address Proof

If you are curious about the documents required for Demat account for address proof, below is the list of documents you can provide to your trading platform, PL Capital Group – Prabhudas Lilladher:

1. As an address proof, you can provide your Aadhaar Card, passport, voter ID card, etc.
2. Utility bills, like electricity or gas bills, also act as valid documents for Demat account.
3. DPs accept a registry document or lease agreement of your house for address verification.
4. You can provide insurance policy documents with your address mentioned in them.

Eligible Income Documents for Demat Account

Apart from ID and address verification documents, you need to show income proof. The documents mentioned below are valid for opening a Demat account:

1. Provide the latest salary slips received from your employer as proof of income. Also, you can submit Form 16.
2. A bank statement with the transaction details of the last 6 months is also valid income proof.
3. A net-worth certificate issued by a certified Chartered Accountant (CA) is also valid.
4. Statements of your previous Demat accounts from a registered DP are eligible as income proof.

Conclusion

When investing, you should have a clear idea about the documents required for Demat account for seamless Demat account creation. Brokers and other DPs consider different forms of documents such as ID, address and income proof. However, aside from documents, you might need to provide your digital signature for an online Demat account creation.

FAQs

1. Do I need to provide my Aadhaar Card for a Demat account creation?

Your Aadhaar Card is required to validate your residential address. However, depending on your DP, you can provide utility bills, lease agreements, etc., aside from your Aadhaar card.

2. Are income proof documents necessary for a Demat account?

Brokers might ask for income proof if you want to trade using derivatives only. You do not need income proof for other investment options like equities.

3. Can I submit documents online for a Demat account?

The concept of a Demat account is to trade in digital securities. Hence, the Demat account opening process is also now digital. Most brokers have a dedicated online trading platform, where you can upload your PAN, Aadhaar, digital signature, etc., to open an account.

4. What address proof documents are acceptable for a Demat account?

As an address proof, you can produce your Aadhaar Card, voter ID card, utility bills, etc. Also, DPs might accept a lease agreement, insurance policy documents, with the address, etc.