Documents Required for Opening Trading Account

Documents Required for Opening Trading Account

Documents Required for Opening Trading Account

You must complete a procedure known as Know Your Client, or KYC, in order to create a trading account. This process entails providing the broker with important papers in addition to the account opening form.

Documents required for opening trading account are generally categorized as proof of identification, residency, income, etc. Customers must comply with all the documentation requirements for creating a trading account, submit it in duplicate, and bring the originals with them for verification, according to SEBI. 

If we were to group the paperwork needed to create a trading account into categories, there are five different sets: 

  • Required documentation, such as a PAN card and a photograph
  • Evidence of Identity
  • Evidence of Residence
  • Proof of Income (required just for the activation of F&O trading)
  • Verification of bank mandate 

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Table of Content

  1. Documents Required for Opening Trading Account
  2. Proof of Identification or POI documents
  3. Documents serving as address verification
  4. Documents proving your income
  5. There are a few other considerations
  6. How do trading accounts function?
  7. How can I view the balance of my trading account?
  8. Conclusion

Proof of Identification or POI documents

The purpose of the Proof of Identity is to demonstrate that you are who you say you are. The work that follows serves as identification.

  • PAN Card (usually, brokers require POI in addition to PAN cards).
  • With a genuine UID number, an Aadhar Card
  • India's government issues passports with minimum 6-month expiration dates.
  • Election ID card
  • The RTO issues digital or electronic driving licenses.
  • A valid identification card issued by the federal or state government with a photo

Documents serving as address verification

You can provide any of the following papers to create a trading account as proof of address. You must provide documentation of your permanent address and correspondence address.

Send two sets of papers if these two are distinct. The list of credentials recognized as POAs may be seen below.

  • Government of India-issued Resident Indian Passport
  • The UIDAI issues Aadhar Cards.
  • The election commission issues voter identification cards.
  • Ration card (acceptance of which is controversial)
  • a state RTO in India has awarded you a driver's license.
  • Signed/Stamped Front page of a bank passbook or account statement
  • Utility invoices with links, such as those for electricity, MTNL, or gas 

Documents proving your income

In order to activate F&O trading, brokers do not require income documentation. You may provide any of the following papers as evidence of your income.

  • Copy of Income Tax Return (ITR) with Acknowledgement submitted to the IT Department
  • A CA's audited and certified annual income copy
  • a recent six-month, stamped bank statement
  • Salary Slip / Form 16 Demat Holding Statement 

There are a few other considerations

While this summarizes the papers required to start a trading account, there are a few things to keep in mind. Since current SEBI laws only permit bank transactions on your trading account, you must present documentation proving your bank account is connected to both your trading and your depository account.

You may provide a copy of the canceled cheque with the name printed, as was previously mentioned. 

You can also provide a bank passbook with an IFSC code as an alternative. The majority of brokers want a copy of the voided cheque. Last but not least, original copies of all documented proofs must be given for validation. If any of the papers don't include originals, they must be legally authenticated by a Notary Public or a Gazetted Officer. 

How do trading accounts function?

The platform where transactions on the stock market are carried out is the trading account. Using the trading account, you may buy and sell stocks, futures, options, currencies, and ETFs.  

An order that you place is first placed in the order book, and once it is performed, it is then placed in the trade book. Trading account orders cannot be changed or canceled since they have not yet been carried out. A bank account and a demat account are also interfaced with the trading account.

How can I view the balance of my trading account?

By connecting to your online trading account, you may view the balance of your trading account. You may access the margins available in the trading account in the form of cash and shares by visiting the area of the fund that is currently accessible.  

Both the Online Trading App and the online account may be used to check this. After verifying yourself, you may also phone your broker's help desk or customer service department to get access to this information. 


Documents required for opening trading account include financial information, residence confirmation, and identification evidence. Depending on the jurisdiction, the kind of trading account, and the brokerage business involved, the particular regulations may change. 

People who are interested in creating a trading account must carefully study the requirements listed by the brokerage business and make sure they have all the required documentation in hand. The account opening procedure may be delayed or rejected if the necessary documentation is not provided.

Documents required to Open a Trading Account FAQs

A valid government-issued identity document (passport, driver's license), evidence of address (bills from the utilities or bank statements), and a social security number or tax identification number are sometimes needed. Depending on the brokerage company and the jurisdiction, different documentation could be required.

To confirm your identity and know your customer (KYC) rules, identification papers are required. They contribute to preserving the integrity and security of the financial system.You can do it virtually from your stock trading platform.

You can submit essential papers online. As long as your telephone number is linked to your Aadhaar card in this situation, you don't need to bother about attestation or taking prints. 

Utility bills (electricity, water, and gas), bank statements, lease agreements or official documents that clearly display your residence address are examples of acceptable evidence of address.

The process of opening your trading account may be delayed or rejected if the required papers are not provided.