What Are The Documents Required for Demat Account?

The term "Demat" refers to a dematerialised account. You keep your securities in an account, such as bonds, shares, mutual funds, government securities, and exchange-traded funds (ETFs). It holds all of them electronically, it is called a dematerialised account. Shares are held electronically rather than physically by you as an investor (or shareholder). As a result, you will need a few government-approved documents to open a demat account.

In the realm of demat account opening, it is always better to know how to open a Demat account. An essential aspect of opening a Demat account online is the list of documents to be submitted for the application to go through successfully. A complete list of documents prescribed by SEBI is required to verify your background as a client.

The documentation process is divided into two sets of documents: identity proofs and residence proofs for opening your Demat account. Here you need to understand that PAN is the basic document, and the proof of identity and proof of residence are usually insisted as separate documents other than the PAN card, so you must be prepared for the documentation accordingly. This is an integral part of the process of opening a Demat account. 

Types Of Documents Required To Open Demat Account

For the opening of a Demat account, the following documentation is required.

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

The following documents are also required:

• Bank account proof, such as a cancelled cheque or passbook
• Recent passport-sized photograph
• Below is the list of documents needed for Address proof, identity proof, and income proof.

Address Proof documents for opening demat account

1. You'll need a passport, a voter's ID card, a ration card, a registered lease or sale agreement, a driver's licence, a flat maintenance bill, and a copy of your insurance policy
2. Telephone bill (only landline), electricity bill, or gas bill - less than three months old
3. Statement of Bank Account/Passbook - Not older than 3 months
4. High Court and Supreme Court judges' self-declarations indicating their new addresses
5. Any of the following is a valid proof of address: Bank Managers of Scheduled Commercial Banks, Scheduled Cooperative Banks or Multinational Foreign Banks/Gazetted Officer/Notary public/Elected representatives to the Legislative Assembly or Parliament/Documents issued by the Government or Statutory Authority.
6. A copy of an identity card/document with an address issued by any of the following: the Central or State Governments, the Statutory/Regulatory Authorities, the Public Sector Undertakings, Scheduled Commercial Banks, Public Financial Institutions, Colleges affiliated with universities, and professional bodies like the ICAI, ICWAI, ICSI, and Bar Council, to their members.
7. For FII/sub-accounts: Power of Attorney document (duly notarised and apostilled or consularized) indicating the registered address of the FII/sub-account

Proof of Identity documents for opening Demat account

1. You must have a valid photograph on your PAN card. All applicants are required to obtain PANs, unless they are specifically exempt from the requirement.
2. A unique identification number (UID) (Aadhaar/Passport/Voter ID/Driver ID.
3. Any of the following bodies may issue an identity card/document with the applicant's photo: the Central or State Governments, Statutory/Regulatory Authorities, Public Sector Undertakings, Scheduled Commercial Banks, Public Financial Institutions, Colleges affiliated with universities, Professional Identification Cards issued by ICAI, ICWAI, ICSI, and Bar Council, among others. Banks issue credit cards/debit cards.

Proof of Income documents for Demat account opening

1. Copy of the Income Tax Return (ITR) Acknowledgment slip submitted to the Income Tax Department during tax filing.
2. Chartered Accountant's Certificate of Net Worth; alternatively, a photocopy of the Annual Accounts duly audited by one.
3. A recent Salary Slip or other document proving income or net worth, such as Form 16, is required as proof of salary.
4. A statement showing the holdings of a Demat account with an eligible Depository Participant.
5. An account statement reflecting the client's income history over the past six months.
6. A self-declaration along with supporting documents substantiates ownership of assets. 

Documents required to open a Demat account for a minor

Minors must be the only holders of their accounts, meaning that joint holders and nominees cannot be appointed. Furthermore, the accounts of minors can only be operated by their parents or guardians.

For opening a Demat account in the name of your minor child, you'll have to provide the relevant documents. Here are the requirements.

1. PAN card copy of the minor
2. Birth certificate copy of the minor
3. Proof of the guardian's PAN card, clearly displaying the photo
4. Bank accounts held in the minor's name must be verified
5. A proof of the guardian's address
6. A minor's father or mother is the only guardian. If the guardian does not have a parental relationship with the minor, then a court order must be obtained to appoint the guardian.

How to open a Demat account if you don’t have a pan card?

As stated quite explicitly, in an earlier instance, the PAN card issued by the Income Tax authority is the primary document for opening your Demat account. What if you do not have a PAN card? In such cases, you can apply for the PAN in Form 49A and submit a copy of the filled-up form to your DP. That will be accepted for opening the DP account, and once the PAN number is allotted, you can update your DP records.

Some individuals are explicitly exempted from the need to submit their PAN card for the DP account application. For example, the extant guidelines and rules exempt investors residing in Sikkim from submitting their PAN card for opening Demat accounts. In addition, embassies and multilateral funding agency employees are exempted from submitting their PAN cards if they have been specifically exempted from filing returns in India. However, these are the few exceptions, and all others must submit PAN cards.

How To Open A Demat Account In The Absence Of Original Document Copies?

Let us turn to a practical aspect. Do you need to submit the photocopies, and do you need to carry the originals with you for verification? The basic rule while opening a Demat account is to submit self-attested photocopies of the documents and bring the originals with you for verification. What if you don’t have the originals?

In case you do not have originals, the Notary Public, a government gazetted officer, or the manager of a PSU bank is authorised to attest the documents on your behalf. That is acceptable and is considered as good as the original. However, in the case of DP account opening by NRIs, such documents must be attested by the overseas branch of the bank, court magistrate, judge or by the embassy or consulate general of the country where the NRI resides.

It must be noted here that the DP can insist on additional documentation if they so deem fit.

Investing in financial markets and holding securities electronically requires opening a Demat account. A complete set of documents is required for a successful application for a Demat account, including proof of identity, address proof, income proof, and proof of bank account. Applicants must submit their PAN card as a fundamental requirement, along with other identification documents from government authorities or financial institutions. The blinkX demat app can assist you with opening a Demat account and simplifying your investment journey, creating a seamless and efficient experience.