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In the realm of demat account opening, it is always better to know the process to open demat account to make the journey smooth. One of the important aspects of your opening of demat account online is the list of documents to be submitted for the application to go through successfully. There is a complete list of documents that have been prescribed by SEBI that are required to verify your background as a client. 

The documentation process is divided into two sets of documents viz. 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 normally insisted as separate documents other than the PAN card, so you must be prepared for the documentation accordingly. This is an important part of the process to open demat account. 

One of the most basic demat account opening requirement is the PAN card, without which you cannot go ahead with the other documentation. Your PAN (Permanent Account Number) card issued by the Income Tax Department is the primary document required for opening a demat account online. Even in the case of opening demat account for minor, the PAN of the guardian has to be submitted. Proofs of residence and identity are on top of that. Let us now look at the demat account documents required for the account opening process.

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What documents to submit for proof of identity?

The depository participant (DP) will accept any of these documents as proof of identity, subject to verification and ratification with the original documents.

The Depository Participant (DP) will accept any unique identity card issued by a recognized government authority. However, this must have your photograph affixed to the identity card. In short, it must be a photo identity card. Accordingly, the acceptable documents as proof of identity include Passport, Aadhar Card, Voter ID card or your Driving License issued by an Indian Regional Transport Authority (RTA). Please take care to ensure that the name must be spelt in exactly the same format as the DP form and the date of birth and signature must match with the details on the DP form.      In addition to the above popular documents used as proof of identity, SEBI has also spelt out a list of other documents that are acceptable as proof of identity. The DP will also recognize any ID card or document affixed with latest valid photograph issued either by the central government, state government, government departments, statutory bodies, public sector undertakings, scheduled commercial banks etc. Therefore, ID cards issued by colleges affiliated to recognized Universities (not private universities or deemed universities) will be accepted. The identity cards issued by statutory professional bodies like ICAI, ICWAI, Bar Council and ICSI to its members will also be acceptable.

What documents to submit as proof of address?

What about proof of address? Here are the documents that would be accepted as valid proof of address by the DP.

Any ID card issued by a statutory authority with the address clearly mentioned is acceptable like election card, Aadhar Card, Driving License etc. However, the same document is normally not accepted as proof of identity and proof of address.  You can also submit the bank account statement for the last 6 months or a copy of the passbook address page. The statement cannot be more than 3 months old and it is always better to get the statement attested by the bank. Normally, even utility bills like landline telephone bill, electricity bill, water bill or gas bill are valid if the address is clearly mentioned and the bill is not more than 3 months old. However, some DPs may insist only on bills by government bodies like MTNL, BSNL etc.  In case you live in an owned house, the registered sale deed is a valid document as proof of address. However, in case you are living on leave-and-license, then a copy of the registered lease agreement is accepted. Ensure that police verification is completed.  Apart from these, in cases where the above documents are not updated with the address, the DP can also accept a letter from a government body or government company or bank on their letterhead and signed, testifying the individual’s address. 

How to open a demat account if you don’t have a PAN card?

As has been 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 in your DP’s records.

However, there are some individuals who are explicitly exempted from the need to submit their PAN card for the DP account application. The extant guidelines and rules exempt investors residing in the state of Sikkim from submitting their PAN card for opening demat accounts. In addition, the employees of embassies and multilateral funding agencies are also exempted from submitting their PAN card, if they have been specifically exempted from filing returns in India. These are the few exceptions, and all others have to submit PAN card.

How to open DP 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 that you must submit self-attested photocopies of the documents and carry 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 authorized to attest the documents on your behalf. That is acceptable and is considered as good as original. In the case of DP account opening by NRIs, such documents have to 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.