Documents Required for Demat Account Opening

Nowadays, due to the widespread Social Media, there is a lot of awareness generated among the people for investing in the equity markets. The first and foremost step of beginning your journey as an investor is to open a demat account online for tradings and investments. A Demat account is a digital storage facility for all of your trade-related equities and transactions. This article provides in-depth information about the documents required for Demat Account Opening.

Different Types of Mandatory Documents Necessary for Demat Account Opening

Choice India is one of the leading brokers in India. Opening a Demat Account with us is a simple and easy process. Following is the list of mandatory documentation required to open a Demat Account with us.

1. Demat Account Opening Form

A Duly Filled Demat Account Opening Form (Individual/Joint) is mandatory for Opening a Demat Account. Submitting a KYC (Know Your Customer) Application Form (Individual/Joint) with correct and detailed KYC is also compulsory.

Note: To obtain the necessary OTPs to complete your KYC, your Aadhar card should be linked to your mobile number.

We offer online filling of the Demat Account Opening forms, which has made the Demat Account Opening simpler, saving the investors from the tedious and cumbersome old-school processes.

2. PAN Card

Your PAN card, with a clear photograph, is a must-have document for opening a Demat account. It is only exempt under limited circumstances, such as when:

1. If someone lives in Sikkim
2. If the transactions are carried out on behalf of or by the state or central government
3. The transactions are carried out by a court-appointed officer
4. The entities (UN) who are not required to file income tax returns
5. The submission of a PAN card is also waived for Institutional Clients

3. Unique Identification Number

Nowadays having a document with a Unique Identification Number (UIDAI) comes in handy while Demat Account Opening. UIDAI documents include – 

• Aadhar Card
• Passport
• Voter’s Card
• Driving License

4. Proof of Identity (POI)

An identity card issued by the Centra/State government Authorized/Regulatory bodies. This card should have a clear photograph of the applicant. Following is the list of Admissible POIs –

1. PAN Card
2. Aadhaar Card
3. Passport
4. Voter ID
5. Driving License
6. Ration Card
7. Any Document/ID Card (with photo) issued by any of the following bodies:
   1. Central or State Government
   2. Public Sector Undertakings (PSUs)
   3. Statutory or Regulatory Authorities
   4. Public Financial Institutions
   5. Scheduled Commercial Banks
8. University-Affiliated College Debit Cards/Credit Cards/Member IDs issued by professional bodies like
   1. ICSI
   2. ICAI
   3. ICWAI
   4. Bar Council

5. Proof of Address (POA)

Proof of address is essential for validating your existing address. When opening a Demat account, there are a number of choices that can be used as legal proof of address –

1. Passport
2. Aadhar Card
3. Voter ID
4. Driving Licence
5. Ration Card
6. Utility Bills
   1. Electricity Bill
   2. Telephone Bill
   3. Gas Bills
   4. Water Bills, etc.

[ Note:

• These bills should be not more than three months old
• The Bills should have a clear mention of your address]

7. A valid Rent/Sale Agreement

6. Proof of Income (To Trade in Derivatives Such as F&O)

If a trader wants to trade in the derivatives market, proof of income is necessary. When compared to the stock market, options and futures are a little riskier due to the significant sum of money involved. As a result, a stockbroker has to verify whether the trader has a sufficient source of income to cover the risks. You can submit the following documents as proof of income –

1. Income Tax Return’s Acknowledgment Slip (ITR)
2. Recent Salary Slips
3. Form 16
4. A Declaration of your Net Worth (This should be verified by a Chartered Accountant)
5. Last Six-Month Bank Statement
6. You can submit the statement of your holdings if you already have another Demat Account

7. Proof of Bank Account

You must give your bank account information while Demat Account Opening. It includes your

• Bank Account Number
• IFSC code of Your Branch

Note: You might need to provide a canceled bank check. The canceled check aids a stockbroker in validating all of your bank information. 

Just make sure your Name, Bank Name, Account Number, and IFSC code are all legible on the Check.

8. Passport Photos

You must also submit your recently taken passport-size pictures. The image should be Clear and Up to Date. You must upload a clear scanned passport-sized photo if you want to open Demat Account online.

9. Signature

If you’re opening a Demat account online, you’ll need to upload a scanned copy of your signature. Make sure the signature is written on a piece of blank white paper. 

After the fulfillment of above documentation we process your verification. After the verification you are ready with your Demat account with us.

Additional Required Documents for Different Types of Demat Account Opening

Apart from a regular Demat Account, there are different types of Demat Account that can be opened such as Minor Demat Account, NRI Demat Account, HUF Demat Account. With the opening of these accounts, some additional documents need to be submitted. Categorically they are mentioned as below –

Minor Demat Account

• PAN Card of both the Minor 

• PAN Card of both the Parent/Guardian

• Proof of Address

• A Photograph of the Minor
• Bank Account Details of the Parent/Guardian

NRI Demat Account

1. A photocopy of the passport and visa
2. PAN Card
3. Abroad Address Proof
   1. Utility Bills (with Out of India Address on it)
   2. Sale/Rent Agreement (with Out of India Address on it)
4. A canceled cheque of either the NRI or NRO bank account
5. FEMA declaration

HUF (Hindu Undivided Family) Demat Account

1. HUF PAN Card (with a clear signature and seal)
2. Address Proof of HUF
   1. Bank statement
   2. Passbook with Signature, and Seal
   3. PAN Card of the Karta (Family Head)
3. Coparcener PAN card
4. The HUF and account number, as well as the IFSC code, should be clearly displayed on the canceled check
5. Proof of income is only required if you want to trade in the derivatives market. You can provide a six-month bank statement, a net worth statement, or an ITR acknowledgment slip.

Corporate Demat Account

1. Balance sheets of the Last 2 Financial Years
2. Document Showing Shareholding Pattern of the Company (This document must be certified by the managing directors or by anyone in ultimate authority)
3. Passport-Sized photograph of the directors.
4. Following details of all the stakeholders –
   1. POA Numbers
   2. PAN Numbers
   3. POI Numbers
   4. DIN Numbers
5. Copy of the Board Resolutions.
6. Signatures of all the Authorized Bodies.

Conclusion

The documentation needed for Demat Account Opening is easy to assemble, and you can keep them on hand to speed up the procedure and reduce your Demat account activation time. Nowadays, the Demat account documentation is even simpler because of the availability of online processes.

The documentation for a Minor Demat Account, an NRI Demat Account, a HUF Demat Account, and a Corporate Demat Account is also simple and can be done with a click of a button. The most important documents required for Demat Account Opening are PAN Card, Proof of Identity (POI), Proof of Address (POA), and Bank Account Information.

If you hold all of the necessary documents, get started on your investment journey by opening a Demat Account right now!