Document requirement for a Demat account

Investing in equity shares in the physical form involves a lengthy procedure, loads of paperwork and the risk of getting fake shares. To keep the entire experience of trading easy, a demat account is necessary. When trading online, opening a demat account is used for holding shares and securities in an electronic or a dematerialized format. A trader’s share certificates will be converted from the physical form to electronic form so as to increase their accessibility.

A trader will be required to open a Demat account for settling their trades electronically. The ownership of a demat account allows a trader to buy shares and store them safely. It might be beneficial for a trader to learn about the procedure and documents required to open a demat account before going forward with it. It is important for an investor to learn about the different documents that are required for opening a demat account.

If a trader decides to trade online, a trader will need to open a Demat account. A demat account is an electronic storage provided to traders to help them store their securities. Opening a demat account has become easy. Individual investors can opt to open demat account online or they can open it all by themselves with the assistance of their representatives. The process of opening a demat account involves the proper documentation However, the documents for demat account opening is the same for any process.

The list of documents for Demat account opening are listed below:

1.    Proof of Identity:
–    A PAN card with a valid photograph. It is mandatory requirement for the applicants.
–    A Unique Identification Number (UID) Aadhar/Voter ID card/driving license
–    Identity card or any document with the applicant’s photo, which is issued by central or state governments and their departments, public sector undertakings etc.

2.    Proof of address:
–    Passport/voters Ration/identity card or a Registered lease or sale agreement of residence/driving license insurance copy/maintenance bill
–    Utility bills like electricity bills, telephone bill or a gas bill – not more than 3 months old.
–    Bank account statement/passbook
–    Identity card/document with address displayed
–    Proof of address in name of spouse can be accepted

3.    Proof of income:
–    A net worth certificated which is certified by a CA, and a cope of the annual account audited by a CA.
–    Proof of salary in form of a salary slip or relevant document that will prove income or net worth like a form 16.
–    Statement of demat account holdings with an eligible depository participant.
–    A recent bank account statement that will reflect the income history of a client for the past 6 months.
–    Relevant documents showing ownership of assets through declaration along with documents that support the claim.

4.    Proof of bank account:
An individual will need to provide a cancelled cheque of the bank they are linked to.

5.    PAN card

6.    1 to 3 passport size photographs

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