Documents Required for Opening a Demat and Trading Account
Demat account is a term for Dematerialized Account, which holds all your securities and stocks in digital form. All assets are transformed from physical to digital form to make online trade more usable and easier for all.
If you want to open one, here are the specifics for all the documents required for a Demat account. Since a Demat account is similar to a bank account, you must offer certain papers. You may also open a Demat account over the internet. You may create a Demat account with a variety of firms and banking groups. Read on for more info on the procedure and documents required to open a Demat account.
Documents Needed to Open a Demat Account
If you want to begin investing in the stock market, the first step is to create a trading account. It functions as a pass to the gate of profits.
The list of necessary papers is not out of the ordinary. Knowing which documents are needed ensures that you do not face any issues while opening a Demat account.
You may now finish the step of creating a trading account online while sitting in the safety of your own home.
The following papers are needed for the opening of a Demat account in India:
- Identity Proof
- Address Proof
- Income Proof
- Bank Details
- Photograph
- Signature
- Identity Proof
When opening a Demat account, you must give proof of identification. Various papers are acceptable as identity proof.
1. PAN Card – Your PAN card with a clean photo is a must-have document for a Demat account. It is only exempt under limited cases, which include,
- If a person is a Sikkim resident
- If the deals are carried out by or on account of the state or federal governments.
- The transactions are carried out by the official appointed by the court.
- In India, entities (UN) are not obliged to submit income tax returns.
- Institutional users are likewise free from having to provide a PAN card.
2. Specific papers with a unique identifying number. This includes your Aadhaar card, driving licence, and voter identification card.
3. An identification card issued by authorised or regulating agencies of the federal or state governments. The applicant’s photograph should be clearly visible on this card.
You may use valid papers to prove your identity before proceeding to the following stage, which is giving proof of residence.
- Address Proof
As a stockbroker in the Country, most of you need proof of address. When opening a Demat account, you have many choices for a valid proof of address.
- Passport
- Aadhaar Card
- Voter identification card
- Driving Permit
- Ration Card
- Bills for utilities (electricity bills, gas bills, telephone bills, water bills, etc.) Please keep in mind that these invoices should be no more than three months old.
- Your address is clearly shown on the identification card.
- A legally binding rent/sale arrangement.
Note: Please keep in mind that your Aadhaar card must be connected to your cell phone in order for you to get the needed OTPs to finish your KYC.
- Income Proof
If you want to trade in the area of the future, you must show evidence of income. Do you know why?
When compared to the equities market, futures and options are a bit riskier. This is due to the large sum of money involved as well as the high danger.
As a result, it is vital for you, as a stockbroker, to verify whether you have a strong source of income to bear the penalty if things go wrong.
You may provide the following papers, such as proof of income.
- You may provide a copy of your Income Tax Return acceptance slip (ITR).
- A declaration of your net worth. A Chartered Accountant should confirm this.
- Recent Salary Reduction.
- Form 16.
- You may submit your holdings’ statement if you already possess another Demat account.
- 6-month bank statement
- Bank Information
You must give your bank information while creating a Demat account. You must provide your account number as well as your IFSC code.
In certain situations, you must additionally provide a cancelled check. Simply ensure that your name, account number, bank name, and IFSC code are clearly visible on the cheque.
The cancelled cheque allows you, as a stockbroker, to thoroughly check all of your bank data.
- Photographs
In addition to the papers listed above, you must provide two current passport-size photos.
The image should be clean and current. The number of photos may vary from one stockbroker to the next. To create an account online, you must supply a clean, scanned passport-sized photograph. There are, however, certain sizes of the same. As a result, ensure that you confirm the required size recommended by your brokerage before resizing your photograph.
- Signature
The last document required is a signature. If you are opening a trading account online, you need to have a scanned copy of your signature. Make certain that the signature is on blank white paper. Following this, your verification will be completed, and the account opening procedure will begin. By supplying the necessary paperwork, you may quickly open your Demat account. It takes around 4 hours to get your Demat account authorised after you submit your paperwork.
If you have problems with the account opening procedure, the app support staff may phone you and walk you through the steps. You must submit these papers for the online application or send self-attested copies together with the trading account opening form.
Documents Needed to Open an NRI Demat Account
Are you an NRI looking for a place to register a Demat account? So, even if you are not a resident of India, you may register a Demat account there. It is known as an NRI Demat account. Let’s start with the documentation needed to create an NRI Demat account.
- A passport and visa photocopy
- PAN Number
- Address verification (utility bills from the nation where one resides, a sale/rent agreement)
- Photographs
- A cancelled check from an NRI or NRO bank account.
- FEMA’s proclamation
You may establish an NRI Demat account if you have all of these papers.
Conclusion
The papers necessary for Demat account opening are not difficult to gather, and you may have them on hand to make the process simpler and reduce the time it takes to activate your Demat account. A minor Demat account, a HUF Demat account, an NRI Demat account, and a corporate Demat account may all be opened. The vital papers are proof of identification, proof of residence, and bank account information. If you have all the documents for a Demat account, go ahead and open one now!
If you want to know more about how to open a Demat & trading account, visit Piramal Finance. You may also explore their products and services.