What are Documents Required to Open Demat Account?
The procedure to open a Demat Account is fairly uniform across financial institutions which requires a standard set of documents before you get to trade in shares with the help of your broker. Here’s a quick checklist of all the documents required to open a Demat Account.
- Proof of identity
- a) PAN card
This is mandatory for every investor, except those exempt from PAN card. An admissible proof of identity should have a valid photograph of the applicant on it.
- b) UID or Unique Identification Number.
This could be your Adhaar or Passport or Voters card.
- c) Identity (with applicant’s photo) attesting document issued by any of the following agencies:
- Central or State Government
- Regulatory bodies
- PSU companies
- Scheduled commercial banks or public financial companies
- Professional bodies like ICAI, ICWAI, among others can issue it for their members.
- Proof of income
- ITR copy
- Photocopy of Audited annual accounts (should have been audited by qualified CA)
- Salary slip
- Statement of Demat Account with legitimate DPs
- Cancelled personalized cheque
- Bank account statements for last 6 months
- Documents to substantiate ownership of assets.
- Power of Attorney or POA
Along with the other documents you will also need to sign agreement papers like the Power of Attorney given to the broker for transfer of securities to settle margins, for settlement of trades and transfer of funds from your account. The POA document has your demat and bank details. It is important to note that it must be given out in the name of the brokerage and not in the name of its employees.
So, now that you know the documents required to open a Demat Account, are you opening an account today?
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* The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances.