What Kind Of Documents Do You Need To Open A Demat Account?

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Demat Account has become an essential thing in the event that you need to invest in the stock market. It makes the whole procedure of share trading secure and expedient. As opposed to investing in shares in physical usage, which is a lengthy process, Demat Accounts are easier to access. They allow you to buy stocks and save them securely in the electronic form. What is even more convenient is that you can start a Demat Account in your namedevoid ofowning any shares, and can keep a zero balance in your account.

Depository Participants (DPs) are mediators between the Depository and Investors. There are two Depositories in India, the National Securities Depositories Limited (NSDL) and the Central Depository Services Limited (CDSL), all shares in Demat form are held between these two. When an Investor wants to transact with their shares the DP will contact one of the Depositories and your Demat account will be operated accordingly.

In order to be able to invest using a Demat Account, you need to open an account. Opening a Demat Account is not complicated at all. You can think of a Demat Account just like a bank account that holds electronic securities instead of money. And just like while opening a bank account, the procedure of opening a Demat account includes submitting a few mandatory documents for verification and proof. The Demat account opening procedure and the documents required to open Demat account are similar across organisations. If any of the documents have an expiry date, just make sure that it is valid at the time of submission.

Here is the detailed list of documents required to open Demat account:

  1. Proof of Income:

You can submit any of the following documents as proof of income-

  • A copy of Income Tax Return Acknowledgement Slip that has been submitted to the Income Tax department while tax filing.
  • An annual statement of accounts that have been authenticated by a Chartered Accountant.
  • Salary slip of the current month.
  • Latest statement of bank accounts with the income history for the last six months.
  • Documents that provide ownership of assets through self-declaration.
  • A statement of Demat Account holdings with an eligible Depository Participant.
  1. Proof of Identity:

You can submit any of the following documents as your identity proof-

  • Your PAN Card with a valid photograph.
  • Aadhaar card / Voter ID card / driving license/ Passport.
  • Identity card having applicant’s photo which is issued by Central/State Government and its Departments, Statutory/Regulatory Authorities, Public Sector Undertakings, Scheduled Commercial Banks, Public Financial Institutions, University affiliated Colleges, and Credit/Debit cards issued by Banks.
  1. Proof of Address:

You can submit any of the following documents as proof of address-

  • Passport/Voters Identity Card/Ration Card/Registered Lease or Sale Agreement of Residence/Driving License/Flat Maintenance bill/Insurance Copy.
  • Utility bills like landline telephone bill, electricity/gas bill with a valid date during submission.
  • Bank Passbook which is not older than three months.
  • Self-declaration of a new address given by judges of the High Court and Supreme Court.
  • Address proof which is issued by bank managers of Scheduled Commercial Banks/Scheduled Co-Operative Bank/Multinational Foreign Banks, Gazetted Officer / Notary public, Member of Legislative Assembly, Member of Parliament.
  • Identity card containing address which is issued by Central/State Government and its Departments, Statutory/Regulatory Authorities, Public Sector Undertakings, Scheduled Commercial Banks, Public Financial Institutions, University affiliated Colleges, etc.
  • Address proof that in the name of the spouse.

In times like today, where everything can be done online, Demat Accounts are the best option to invest in the stock market and to store your shares safely. Easy access to the account makes it even better. A Demat Account offers various facilities to the users like transfer of shares, loan facility, multiple access points, corporate actions, speed 3-facility, and many more. And now that you know the necessary documents and proofs required to open a Demat Account, get started, open an account today and start trading today.