A Demat account is similar to a bank account, except it stores securities and other financial instruments in electronic format. The procedure to open a Demat account online is almost the same across different firms and institutions. 

You have to select a depository participant (DP) which can be banks, financial institutions, and brokers authorized by the SEBI to open a Demat account online.

Demat Account

After choosing a trusted DP, you must go through all the terms and conditions to understand the documents required for the Demat account opening process.

Eligibility to open a Demat account:

  • A person can only open a Demat account when they are above 18 years of age
  • One can also open a minor Demat account for their child, but the parent or guardian must supervise the account until the minor turns 18.
  • Even if you are an NRI (non-resident Indians) you can open an online Demat account in India.

The following categories of non-individuals are also eligible to open a Demat account online:

  • Corporate entities
  • Partnership organizations with the Demat account in the partner’s name
  • Registered or unregistered trusts, the Demat account being in the trustees’ name
  • Registered or unregistered societies with Demat account in the name of members
  • An association of persons (AOP)
  • Limited liability partnership (LLP)

Documents required for Demat account opening are:

  • Proof of identity (POI)
  • Proof of address (POA)
  • Proof of income
  • PAN card
  • Copies of recent passport size photographs

Below is the detailed list of documents required for Demat account opening

List of documents qualifying for proof of identity (POI):

  • PAN card with a credible photograph of the applicant. PAN card is mandatory for all applicants except for those specifically exempt from obtaining PAN
  • Unique identification number (UID) for example- Aadhar/ passport/ voter ID/ driving license
  • Ration card that contains your photograph
  • Identity card or document with the applicant’s photo, issued by the following bodies:
  1. Central or state government
  2. Statutory or regulatory authorities
  3. Public sector undertakings (PSUs)
  4. Scheduled commercial banks
  5. Public financial institutions
  • University-affiliated college credit or debit card member IDs issued by the professionals like ICAI, ICSI, ICWAI, or the bar council

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List of documents qualifying for the proof of address:

Documents required as address proof for Demat account opening are:

  • Applicant’s passport
  • Voter’s ID
  • Ration card
  • Any registered sale or lease agreement of your current residence
  • Driver’s license
  • Utility bills such as electricity bills or telephone bills containing your address that are not over 3 months old
  • An insurance copy
  • A copy of your bank statement or passbook which is not over 3 months old
  • Government or statutory authority document
  • Proof of address issued by: Bank Managers of commercial banks, co-operative banks, multinational foreign banks, gazetted officer, a notary public or legislative assembly or the parliament represent
  • Any document or identity card issued by: Central or state government and its department statutory or regulatory authorities, public sector undertakings (PSUs), scheduled commercial banks, public financial institutions, university-affiliated colleges, professional bodies like the ICAI, the ICSI, the ICWAI or the bar council.
  • Address Proof in the name of the spouse is accepted

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List of documents qualifying for proof of income:

  • A copy of the income tax return (ITR), as submitted to the income tax department
  • A net worth certificate by a chartered accountant
  • Salary proof Demat account securities statement with other DP
  • A copy of the current bank account statement stating the history of the past six months’ income

List of people authorized to attest the documents:

  • Notary public, manager of a scheduled commercial bank or multinational foreign banks (name, designation, and seal should be affixed on the attested copy)
  • With NRIs
  1. A judge
  2. Court magistrate
  3. Authorized officials of overseas scheduled commercial banks registered in India
  4. An Indian embassy or the consulate general in the country where the client lives

After having all these documents ready, you can open a Demat account online and start your trading journey.

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