Documents required for opening a Demat account

Opening a Demat account is a must if you want to participate in the Indian stock markets. A Demat account is a virtual account which holds your assets (shares, bonds, ULIPs etc) in dematerialised i.e. electronic form. This aids in quick settlement and is one of the catalysts for the growth of online share trading in India. Everytime you sell shares, your Demat account is debited. Similarly, whenever you buy shares, your Demat account is credited. In India, Demat accounts are held by two central depositories, namely, the National Securities Depository Limited (NSDL) and the Central Depository Services Limited (CDSL). You can open a Demat account through a depository participant i.e., your broker, which serves as a link between you and the depository. The process of opening a Demat account is simple, seamless, and swift. You can open a free Demat account online to start your investment journey. However, it is important to keep all the documents required for opening a Demat account handy so the application process is completed in a hassle-free manner.

If you are wondering what documents are required for a Demat account, the list is as follows:

• Valid proof of identification (PAN card is mandatory)
• Valid proof of address
• Valid proof of income
• Valid proof of bank account
• Recent passport-sized photographs

List of documents admissible as proof of identity while opening a Demat account:

• Permanent Account Number (PAN) Card
• Valid government-issued Aadhaar Card
• Valid Driving License
• Voter Identification Card
• Passport
• Other identification cards issued by:
  • The Government of India
  • State Governments
  • Public Sector Undertakings
  • Statutory Bodies
  • Scheduled Commercial Banks and Financial Institutions
  • Professional Organisations
  • Universities.

List of documents admissible as proof of address while opening a Demat account:

• Passport
• Aadhaar Card
• Driving License
• Voter Identity Card
• Ration Card
• Lease agreement or registry of your house
• Insurance policy issued in your name (comprising your address)
• Electricity bills, gas bills, or landline bills (for a period not earlier than the preceding three months)
• Last three months’ bank account statement or passbook
• Proof of address in a document issued by the Central Government, State Governments, Public Sector Undertakings, Statutory Authorities, Universities, Scheduled Commercial Banks and Financial Institutions
• Self declaration of address (only applicable in the case of the judges of the Honourable Supreme Court and High Courts)
• Proof of address of your spouse (if applicable)

List of documents admissible as proof of income while opening a Demat account:

• Recent Salary Slips
• Form 16
• Bank account statement of the past six months, comprising income details
• Income Tax Return acknowledgement form (copy)
• Net worth certificate issued and authenticated by a Chartered Accountant
• Demat account statement from an authorised depository participant, detailing your Demat holdings
• Statement of audited annual accounts, issued by a Chartered Accountant (copy)
• Self declaration of the ownership of any assets, supported by the relevant documents

Exemptions/ Clarifications to PAN Submission

Although it is mandatory to submit your PAN card details while opening a Demat account, the following are exempt from this mandate:

• Residents of Sikkim
• Transactions conducted for court-appointed officers
• Transactions conducted for the Government of India or any state government
• United Nations entities which are not required to file taxes in India
• Multilateral agencies exempt from tax filing in India

While the process of opening a Demat account is simple in itself, you must not open a Demat account with any random broker. You must look at various charges levied by the broker – account opening fee, brokerage, account maintenance fees etc. The lower these charges, the higher will be your take home income. This is where m.Stock’s Zero Brokerage account stands apart. As the name suggests, when you open a zero brokerage account with m.Stock, all your trades are free for life across products like intraday, delivery, futures and options, currency etc. So, pay a one-time account opening fee of ₹999 and make all your trades free for life. Open m.Stock Zero Brokerage account now!