How to Open Demat Account Without Aadhar Card?

With the popularity 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 How can I open demat account without Aadhar card? arises.  So if you're also thinking of demat account opening without aadhar card, You can find the answer to your question in this article. 

Why Open a Demat Account?

A Demat Account is essential for paperless electronic trading and stock investing. It negates the need for physical share certificates. The dematerialized format ensures the safety of the securities and swift transaction settlements. With a Demat Account, investors can buy, and sell a wide range of financial instruments online. They can also check their portfolio online, apply for IPOs and rights issues, and receive dividends and other corporate actions directly. What's more, many governments, including India, have mandated the use of a Demat Account for online trading. So, if you want to participate in financial markets, a Demat Account is a must-have. 

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Opening a Demat Account without Aadhaar 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.

Documents Required to Open a Demat Account Without Aadhaar Card

Following are the documents required to open demat account online without an aadhar card: 

1. Proof of Identity (like a PAN card, a driver's licence, etc.)
2. Proof of Address (Utility bills, voter ID, driving licence, rent agreement, etc)
3. Proof of income 
4. 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 Demat without Aadhar, you can still submit your e-Aadhaar card as proof of identity.

Why is Aadhaar also an Important Document to register a Demat

The Aadhaar card is a common identification document provided by the Indian government. It acts as both identification and address proof and is an important document as it protects against funds being misused as well as cases of corruption. Additionally, having an Aadhaar card will also help control financial fraud, including tax evasion. Along with the KYC process, Aadhar card linking to the mobile phone is an important task. 

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 the Indian government has authenticated. 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.