January 27, 2023
3 mins read
This guide simplifies the Demat account opening process, detailing essential eligibility criteria for residents, minors, and NRIs. You will learn which specific documents qualify as valid proof of identity, address, and income to satisfy SEBI’s KYC norms. This clarity ensures a fast, paperless setup, empowering you to start trading securely in equities and derivatives.
If you want to open a Demat account, you might think the process will be long and full of paper. The process has become simpler due to online KYC and e-verification facilities. The documents required for a demat account are simple and few. You need proof of identity, proof of address, and sometimes proof of income. These documents help verify customer identity as per SEBI-mandated KYC norms. They also help us process your demat account fast. Whether you open your demat account online or offline, the list is largely the same for new customers.
Any Indian resident can open a Demat account with a registered depository participant. They must be at least 18 years old.
Minors can also have a Demat account. However, a parent or legal guardian must run it. They must do this until the minor becomes an adult.
Non-Resident Indians (NRIs) can open an account. They need proof of identity from their country of residence and from India.
Hindu Undivided Families (HUFs), partnerships, and companies can open Demat accounts in the entity name.
Some foreign nationals may also apply. This depends on RBI and SEBI rules for approval.
You will not need many documents to open a demat account. Just some valid proofs of identity, address, and income. These proofs help finish your KYC quickly. They let you activate your account fast. Here is the list of documents required to open a demat account.
Any of the following documents, bearing a photograph and issued by a government authority, are accepted as valid identity proof:
Aadhaar card
Voter ID card
Passport
Driving licence
PAN card (in addition to being a mandatory document, it also serves as identity proof)
Central or state government-issued ID cards (with photo)
Photo ID cards issued by public sector undertakings or statutory/regulatory authorities
Ensure the document submitted is current, legible, and matches the applicant's name as stated in the application form.
Additional Read: Eligibility Criteria to Open Demat Account
For address verification, applicants must submit any of the following documents with their current and permanent address clearly mentioned:
Aadhaar card
Passport
Voter ID card
Driving licence
Registered rent agreement
Utility bills (electricity, telephone, gas) not older than 3 months
Bank statement or passbook with recent transactions
Property or Municipal tax receipt
Insurance policy document
These documents help verify residence and communication details. Ensure the document submitted has the full residential address and is not outdated.
Income proof is required when you want to trade in derivatives, futures, and options. Submit any one of the following as proof:
Latest salary slip (not older than 3 months)
Form 16 issued by the employer
Income Tax Return (ITR) acknowledgment
Statement of Demat holdings
Net worth certificate from a CA
Bank statement showing income/transactions (last 6 months)
These documents help assess the financial eligibility of an investor and are essential for trading in higher-risk segments like derivatives.
PAN card submission is mandatory for opening a demat account in most cases as per SEBI guidelines. However, there are a few exceptions and clarifications worth noting. In specific cases like joint accounts of certain institutional investors or those exempted under Income Tax provisions, PAN may not be compulsory, provided alternate verification is done.
Here are important points to consider:
PAN must be linked with Aadhaar to remain valid
Minor demat accounts require the guardian’s PAN
NRIs and foreign nationals must submit a copy of PAN card and valid visa/residence permit
For entities exempted under law (e.g., UN agencies), alternate identity verification documents can be accepted
Always ensure the PAN is updated with current details and matches across all documents to avoid rejections
Providing a valid PAN is essential for taxation compliance and maintaining investment transparency.
Additional Read - Open Demat Account Without A PAN Card
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Income proof is mandatory only if you intend to trade in derivatives. For regular equity trading, income proof is not required. However, having income proof ready, such as a salary slip or an ITR, can speed up the process.
The documents required for opening a Demat account include your PAN card, Aadhaar card, passport-sized photographs, and bank account details. In some cases, income proof might be required if you are planning to trade in the derivatives segment.
Yes, it is possible to open a Demat account online. Many stockbrokers, including Bajaj Broking, offer an entirely digital process that allows you to submit your documents required for a Demat account and complete KYC verification online.
No, you cannot open a Demat account without a bank account. Linking a bank account is a mandatory step, as it facilitates the seamless transfer of funds for your stock transactions.
The time to open a Demat account can vary depending on the service provider. Typically, it takes 1 to 3 business days once all the documents required for a Demat account are submitted and verified.
The eligibility criteria for opening a Demat account include being an Indian citizen, having a PAN card, and being at least 18 years old. Minors can open a Demat account under the supervision of a guardian.
Yes, college students can open Demat accounts, provided they meet the minimum age requirement and have the necessary documents such as a PAN card and address proof.
Most brokers, including Bajaj Broking, offer free account opening. However, there may be other charges like Annual Maintenance Charges (AMC) associated with maintaining a Demat account.
This updated content ensures all target keywords are integrated while maintaining a focus on the Indian stock market perspective.
Aadhaar is one of the primary documents required to open a Demat account. If Aadhaar is not used, permitted alternatives include recognised government documents such as a Passport, Voter ID, or Driving License. Any of the above would provide KYC verification for opening a Demat account.
A Demat account allows you to keep securities in an electronic format, eliminating the need for physical certificates. This will also simplify your record-keeping and reduce paperwork. Securities such as shares, bonds, and mutual funds can be stored safely in your Demat account. You can also manage, maintain, and track your holdings electronically through the account and transact via a linked trading platform.
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