Documents Required to Open a Demat Account: A Complete List

Last Updated: 10 Jan 2025

Overview

A Demat account holds your shares and securities in electronic format. You need to select a depository participant (DP), which can be banks, financial institutions, brokers, or any entity authorised by SEBI to open your Demat account. Once you’ve chosen your trusted DP, you can proceed to read all the terms and regulations to understand the documents required to initiate your account opening process.

Eligibility to Open a Demat Account

A person can open a demat account if they are:

• Resident individuals
• Minors
• Non-resident Indians

In the case of minors, the account is to be operated by a guardian/parent till the minor turns 18.Non-individuals in the following categories are also eligible to open a Demat account:

• Corporate entities
• Partnership firms, with the Demat account in the partner’s name
• Registered/unregistered trusts, the Demat account being in the name of the trustees
• Registered/Unregistered societies, with the Demat account being in the name of the members
• An Association of Persons (AOP)
• Limited Liability Partnership (LLP)

Banks and mutual funds can also open Demat account. Foreign Institutional Investors and Foreign Portfolio Investors can open trading accounts.

Types of Documents Required for Demat Account Opening

Documentation requirements for demat account opening process are as follows.

• A proof of identity
• A proof of address
• A proof of income

Other required documents include:

• Bank account proof, such as a cancelled cheque or passbook
• Recent passport-sized photograph

List of Documents Qualifying Identity Proof.

Any government registered document is identity proof. Here are some options:

• Your PAN card with a valid photograph
• Any document with a Unique Identification Number (UID), such as Aadhaar, passport, voter ID card, or driving license
• Your ration card, provided it contains your photograph
• Any identity card or document containing your photo, issued by one of the following bodies:
  1. Central or State Government
  2. statutory or regulatory authorities
  3. Public Sector Undertakings (PSUs)
  4. scheduled commercial banks
  5. Public Financial Institutions

University-affiliated college credit cards or debit cards Member IDs issued by professional bodies like ICAI, ICSI, ICWAI, or the Bar Council.

List of Documents Qualifying as Address proof

Documents required as address proof to open your Demat account are:

• Your passport
• Your voter’s card
• Your ration card
• Any registered lease or sale agreement of current residence
• Your driver’s license
• Any utility bill with your address, provided they’re not older than three. months from the application date
• An insurance copy
• A copy of your bank account statement or passbook, not more than three months older than the date of application date
• Government or statutory authority document
• Address proof issued by one of the following:
  1. Bank managers of commercial banks, co-operative banks, or multinational foreign banks
  2. Any gazetted officer
  3. A notary public
  4. Legislative Assembly or the Parliament represent

• Any identity card or document containing your address, issued by:
  1. Central or state government and Statutory or regulatory authorities
  2. Public Sector Undertakings (PSUs)
  3. scheduled commercial banks
  4. Public financial institutions
  5. University-affiliated colleges.

Professional bodies like the ICAI, the ICWAI, the ICSI, or the Bar Council A high court or supreme court judge needs to give a self-declaration of the new address for opening a Demat account. Address proof in the spouse’s name is acceptable.

List of Documents Qualifying as Proof of Income

Examples of income proving documents are:

• Income Tax Return copy, as submitted to the Income Tax Department
• A Net Worth Certificate certified by a Chartered Accountant
• Salary proof Demat account holdings statement with other Depository Participant
• A current bank account statement showing the history of past six months income before the date of application

Conclusion

After having the documents required for opening a Demat account ready, you can open an account and begin your investing/trading journey. The process of your application gets quicker, faster and smoother by having the documents required for opening Demat account ready.

Frequently Asked Questions

Q1 Is it mandatory to link a bank account to the Demat account?

Ans: Yes. Linking a bank account with a Demat account is compulsory. You will need to give your bank details at the time of the Demat account opening.

Q2Can a parent or a guardian trade using a minor Demat account?

Ans: Yes, a parent or a guardian can trade on behalf of the minor, but only in equity delivery trades. SEBI doesn’t allow intraday trading using a minor’s Demat account.

Q3What documents are required for bank details?

Ans: The investor must submit a cancelled cheque and two photographs to provide bank details.

Q4. Is it possible to open a Demat account online?

Ans: Yes, it is possible to open a Demat account online. Many financial institutions and brokerage firms offer online services to make the process convenient and straightforward by helping to simplify the documents required for Demat account.

Q5. How many days does it take to open a Demat account?

Ans: The time it takes to open a Demat account can vary depending on the financial institutions or brokerage firm one opts for. It can span from a few hours to a couple of days if all the documents required for opening a demat account are in order without discrepancies.