Open Demat Account without Aadhaar Card

Open Demat Account without Aadhaar Card

With the advent of Internet trading, Indians are gaining better access to financial markets and the ability to invest their own money. No more paperwork and difficult certifications as in the past. Those who trade in stocks need a Demat, a trading account, and a bank account.

With a Demat account, you can protect your hard-earned stocks and shares. Because of this need, the question of can I open a Demat account without an Aadhar card? arises. So if you're also thinking of opening a Demat account without an Aadhaar card.  You can find the answer to your question in this article.

How to Open a Demat Account Without an Aadhar Card?

Opening a Demat account raises the question: Is Aadhar mandatory for a Demat account? Aadhaar is mandatory when an investor plans to open a Demat Account to prevent money laundering and tax deception. Aadhaar Cards are vital proof authenticated by the government. As a recognized document that proves identity and address, it can prevent misuse of funds and corruption.

The following steps will help you open a Demat account:

  1. Apply for a Demat account by filling out the form on the DP website or app.
  2. You will need to attach passport-sized photos as needed.
  3. You must submit mandatory documents to prove your address and identity, such as your passport, PAN card, and Aadhaar card. 
  4. Provide proof of income, such as a net worth statement or income tax return.
  5. You must complete the in-person verification.
  6. Obtain approval for the opening of your account. 
  7. After approval, your login information, including your account number, will be emailed to you.

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Table of Content

  1. How to Open a Demat Account Without an Aadhar Card?
  2. Documents Required to Open a Demat Account Without Aadhaar Card

Documents Required to Open a Demat Account Without Aadhaar Card

Following are the documents required to open a Demat account without an Aadhar card.

  1. Proof of Identity (like a PAN card, a driving license, etc.)
  2. Proof of Address (Utility bills, voter ID, driving license, rent agreement, etc)
  3. Proof of income 

It is quite simple to open a Demat account, though certain documents are required. In some cases, these documents are mandatory, while in others, applicants have options.

One document is mandatory for every Demat account applicant, and that is a PAN card. Previously, in 2017, the Securities and Exchange Board of India made Aadhaar cards mandatory for share purchases and sales. However, this condition changed in 2018.

If you need to open a Demat account without a physical copy of your Aadhaar card, you can still submit your e-Aadhaar card as proof of identity.

Conclusion 
To prevent money laundering and tax deception, the Aadhaar is made mandatory at the time when an investor plans to open a Demat Account. The Aadhaar card is a critical form of identification that has been authenticated by the Indian government. Due to its legitimacy and importance, it can prevent misuse of funds and corruption as it is a recognized identification and address proof document. To complete the KYC process properly, your Aadhar card must also be linked to your mobile phone number. You can still submit your e-Aadhaar card as proof of identity if you need to open a Demat account without a physical copy of your Aadhaar card.

Demat Account Without Aadhar FAQs

Documents required to open a Demat account are a PAN card, proof of address, income proof, photograph, and signature on white paper.

If you have a valid PAN card, you can open more than one Demat Account with a different broker.