Open Demat Account Without Aadhaar Card

For years, trading has been viewed as an exclusive domain in which only seasoned experts or insiders can succeed. However, with the advent of online trading, an increasing number of Indians have gained greater accessibility as well as the resources to invest in financial markets. Moreover, unlike in previous years, there is no more a need to manage the hassles of physical certificates and endless paperwork.

With a trading account, you as a potential trader can execute trades any time and from anywhere, at your own convenience. Moreover, with a demat account, your hard-earned shares and stocks remain safe and easily accessible.

The process for how to open a demat account online has become incredibly convenient and only requires minimal documentation including basic proofs of identity such as a PAN or Aadhaar card. Having said that, you might wish to open a demat account without an Aadhaar card. Would that be possible? Let us explore this in detail below:

What is a Demat Account?

Simply put, a demat account is an online account in which you as a trader can hold your securities, such as shares, in an electronic format. The ‘demat’ in demat account stands for ‘dematerialisation’ which refers to the process of converting physical securities, such as share certificates, into the electronic format.

Demat accounts are essentially the modern answer to the age old problem of holding securities in a safe and manageable way. Also, since demat accounts are entirely online, they can easily be linked to your trading and bank accounts to serve as an efficient means of trading in securities.

Why Open a Demat Account?

The shift from physical certificates for securities to holding securities in a demat account has brought a great amount of convenience to the trading world at large. There are a number of reasons why demat accounts have quickly become an essential, almost default account to have when trading in modern times.

As mentioned above, demat accounts link seamlessly with two other accounts - trading and bank accounts - and therefore, help facilitate your trades in the financial market of your choosing. Apart from this, opening a demat account also ensures that your securities are stored safely and remain free from risks of theft or unauthorized access.

By the virtue of being online, they also provide a convenient means of accessing your securities at any time. Moreover, unlike with physical certificates, electronic records of securities are impervious to the risks of forging or faking of securities.

Opening Demat Account without Aadhar Card

The process of opening a demat account is quite convenient and requires specific documents and information from potential account applicants. Some of these documents are mandatory, while others offer options for the applicants.

Out of these, the only document that is mandatory for every demat account applicant is a PAN card. Previously, in the year 2017, the Securities and Exchange Board of India had made the Aadhaar card mandatory for the purchase and sale of shares. However, in 2018, this condition was reversed.

Therefore, if you wish to currently open a demat account without an Aadhaar card, you can certainly do so. You must only ensure that you have a valid PAN card before opening a demat account. Keep in mind that even without the physical copy, your e-Aadhaar card can still be submitted by you as a proof of identity while opening your demat account.

How to Open a Demat Account?

Now that we have a better understanding of why demat accounts are important for trading as well as the role of Aadhaar cards in the account opening process, all that remains is to open a demat account. If you wish to know how to open a demat account online, here are the simple steps you can follow:

  • Start by visiting the website of your preferred Depository Participant (DP). If you choose a DP like IIFL, you can even open a free demat account online.
  • On the website, select the ‘open a demat and trading account’ option.
  • You will then be directed to fill out account opening applications and be requested to upload scanned copies of essential KYC documents.
  • The next step is to read the agreement presented by the DP and if found satisfactory, sign the document by affixing your signature.
  • Once all the relevant documents are submitted, your application will be processed by the DP.

Conclusion

Now you know that you don’t necessarily need an Aadhaar card to open a demat account, you too can join thousands of traders across the country and explore the opportunities presented by the financial markets yourself. All you need to do is open a demat account as well as a trading account with IIFL. With IIFL, investors and traders can avail an all-in-one account through which you can trade in multiple securities online, at your own convenience.

Open Demat Account at IIFL