Open Demat Account Without A PAN Card - A Complete Guide

Listen to our Podcast: Grow your wealth and keep it secure.

0:00 / 0:00

Investors can create an efficient portfolio with the proper allocation of funds to different asset classes, like fixed income, debt, etc with Bajaj Broking App. Also, many want to invest in the stock market leveraging its potential for high growth. To open a Demat account and invest in the name of a minor, you can approach a stockbroker.

The broker will need the identity proof (Permanent Account Number), address proof (Aadhar card) of the parent/ guardian and the minor's birth certificate to open a demat account. Hence, it is possible to open a Demat account without a Permanent Account Number (PAN) card in case of a minor Demat account. However, opening a Demat account without a PAN card is not possible.

What is a Demat Account

A Demat account is a gateway to the stock market. It is a mandatory prerequisite for stock trading that empowers individuals to grab investing opportunities nationally and internationally in the online trading system. You can hold all your financial assets in your Demat account. Demat account holders can track all assets in their portfolio immediately and in one view. Also, portfolio tracking is on the go with your mobile app or web login. Overall, Demat accounts make online trading convenient and fast without any chance of delay and eliminate physical loss or damage to the share certificates.

Each transaction in your Demat account gets completed securely, following the SEBI's (Securities and Exchange Board of India) guidelines. To open a demat account, you need to adhere to SEBI's guidelines, including the documentation requirements.

How to Open a Demat Account Online

To open a Demat account with Bajaj Broking, you have to:-

  • Visit the Demat Account Opening form.
  • Fill in necessary details like PAN number, Aadhar, address, and Bank details.
  • Upload the soft copies of your KYC documents.
  • Once you’re done filling in all the details, you need to upload scanned documents such as income proof, bank details, etc. for KYC purposes.
    • Complete the IPV which is the In-Person Verification process.
    • Use your Aadhar-linked mobile number and E-Sign the form.
    • Make sure you review your application before submission.

Is PAN Card A Must for A Demat Account?

One of the documents required to open a Demat account is a PAN card. You need a Demat account irrespective of the size of the investment you intend to make in the stock market.

As per the SEBI mandate issued on 27th April 2007, submitting a PAN card to open a Demat account is mandatory.

Thus, the answer to "can I open Demat account without PAN card" is no.

Can I Open Demat Account Without PAN Card?

As per the recent SEBI revisions, it doesn’t allow investment in stocks, shares and securities without a PAN card. This revision is also applicable to investments made prior to these revisions coming into existence.

Therefore, a PAN card is a prerequisite for entering the financial market for investment purposes.

One can open multiple Demat accounts against one card. However, remember that all these Demat accounts should be linked to the same PAN card.

Why is a PAN card required for a Demat account opening?

SEBI has mandated the PAN card to enhance KYC (Know Your Customer) norms. By Law, an individual must provide PAN card details to open a Demat account as it helps track all transactions and helps in the taxation aspect.

A PAN card is addressed as proof of the legitimacy of an individual in the nation. It is mandatory for all financial transactions as per SEBI. It is required by authorities to track the investors' holdings which must be matched with their income tax filings. Therefore, it is a necessary document to open a Demat account.

Reasons as to why PAN card is a must for Demat Account

A PAN card is an important document for opening a Demat account.

According to SEBI guidelines, an individual cannot request for a Demat account opening without submitting a PAN card.

Let’s look at some of the other reasons.

  • All the applicants must furnish their respective PAN cards, for Demat account requests involving joint or multiple account holders.
  • An individual may apply for multiple Demat accounts, however, all the accounts should be linked to the applicant’s PAN card.
  • HUF accounts also need to submit HUF Pan card for opening a Demat Account.

Documents Required to Open an Online Demat Account

You need to upload the following documents while submitting your online application:

  • PAN card
  • Address Proof
  • A cancelled cheque
  • Live photo
  • Photo of Signature On white paper

Your DP will verify your documents and activate your Demat account.

Thus, individuals looking for "how to invest without PAN card" should know that a PAN card is a must for a demat account.

Conclusion

What are you waiting for? Start your investment journey and open your Demat account right away. It’s not only safe but also offers ease of transaction for investors. Your investment journey is bound to be smooth with the convenience of a Demat account.

Share this article: 

investment-card-icon

Lowest Brokerage Trading and Demat Account

Explore the benefits of a low-brokerage trading and demat account with Bajaj Broking. Start trading smartly and manage your investments efficiently.

investment-card-icon

What is Demat Account

A Demat account digitally holds securities like stocks, bonds, and mutual funds, streamlining transactions and reducing paperwork for efficient trading.

investment-card-icon

What is a Repatriable Demat Account

Explore the features and regulations surrounding repatriable Demat accounts, essential for NRIs investing in India's financial markets.

investment-card-icon

How to Download Demat Holdings Statement

Learn how to easily download your Demat holding statement to keep track of your investments. Follow our simple guide for accessing your statement from your stockbroker.

investment-card-icon

Documents Required for Opening a Demat Account

Find out the documents necessary for individuals to open a Demat account, including PAN card, proof of income, and address verification.

investment-card-icon

How Do I Add a Nominee To My Demat Account

Discover how to add a nominee to your Demat account effortlessly for smooth asset transfer. Discover the process and benefits.

investment-card-icon

Can A Person Have Multiple Demat Accounts In India?

Discover the legalities and practical aspects of having multiple demat accounts in India. Gain a comprehensive understanding of holding multiple Demat accounts.

investment-card-icon

Difference between Dematerialisation and Rematerialisation

Examine the difference between dematerialisation and rematerialisation practices, analyzing their operational guidelines, benefits, and implications for investors.

investment-card-icon

What is Dematerialisation: Meaning, Benefits & Process

Learn about the process of dematerialization and its benefits, from reducing costs and transaction time to enhancing liquidity and security in share market trading.

investment-card-icon

Importance of Demat account

Discover the importance of demat accounts and why they're essential for your investments. Learn about their advantages and why every serious investor should have one.

FAQs

Can I open multiple demat accounts?

Answer Field

Yes, you can open multiple demat accounts but only under the below conditions:

  • You can open only one demat account per DP using the same PAN card.
  • You can open multiple demat accounts with different DPs using the same PAN card.

No results found

Our Secure Trading Platforms

Level up your stock market experience: Download the Bajaj Broking App for effortless investing and trading

Bajaj Broking App Download

7 Lac+ Users

icon-with-text

4.3 App Rating

icon-with-text

4 Languages

icon-with-text

₹ 3800 Cr MTF Book

icon-with-text