Can A DEMAT Account Be Opened Without A PAN Card?
DEMAT accounts, short for dematerialized accounts, are fairly similar to bank accounts in their underlying principle. The main point of difference is that they hold securities and financial instruments instead of money. These accounts have become the preferred method of storing securities and are regulated and maintained by depositories such as the NSDL or CSDL in India, although traders generally avail their services through brokerage firms.
Demat accounts have significantly accelerated the process of trading and greatly reduced the risk of theft, loss or damage to physical paper-based trades since their inception. They are an essential prerequisite for those seeking to enter the arena of trading in securities or other financial instruments and the procedure to open DEMAT accounts is fairly uniform among banks, brokerage firms and other financial institutions that provide platforms for online trading.