EN
A Demat account is similar to any other bank account, except that it is used to hold securities and other financial instruments. The procedure to open a Demat account online is almost the same across different firms and institutions. Additionally, the documents required to open a Demat Account are limited and can be submitted digitally via e-KYC for instant account activation.
Key Takeaways
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A Demat account stores shares and securities digitally, removing paperwork and reducing risks linked to physical certificates, theft, loss, or damage.
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Opening a Demat account requires basic KYC documents such as PAN, address proof, bank details, and income proof only for derivatives trading.
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Online Demat account opening uses e-KYC, bank verification, and Aadhaar-linked OTP authentication, allowing faster activation with minimal manual paperwork.
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Once opened, a Demat account lets investors track, manage, and trade stocks or mutual funds securely with regular SMS and email updates.
Also check out: Demat Account for NRI
List of Accepted KYC Documents
To open a demat account, you will need to provide certain documents. You will need one proof of identity, one proof of address, one proof of bank account and proof of income. Here is a list of accepted documents required for a Demat Account:
1. Proof of Identity
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PAN Card (mandatory requirement)
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You may also be required to present a Bank Verification letter with a photograph.
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A photo ID card issued by a central or state government body, such as a passport, a Driver’s licence, an Aadhaar ID and a voter’s ID.
2. Proof of Address
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Proof of possession of Aadhaar
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Driving Licence
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Passport
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Voter ID
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NREGA Job Card - only for offline account opening and not online.
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National Population Register (NPR) letter - only for offline account opening and not online.
Note: You must submit updated and valid documents with your current address within a period of three months of submitting the above documents.
3. Proof of Bank Account
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The latest bank account statement, where your account name and account number are evident.
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Personalised cancelled cheque leaf with signature.
However, for online account opening, some brokers like Angel One validate bank details through IMPS validation or reverse penny drop verification. Cheque leaf upload is an alternate option.
4. Proof of Income
This is only for trading in derivatives such as Futures and Options (F&O):
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A photocopy of the Income Tax Return (ITR) acknowledgement slip submitted to the Income Tax Department during tax filing.
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Last six months' bank statement.
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Latest salary slip.
Also, read How to know your demat account here.
A Non-Individual Person Who Can Open A Demat Account
A Demat account is not limited to a single investor. Many organisations can also hold shares in electronic form if the documents required for a demat account are submitted correctly. These include companies, partnership firms, LLPs, trusts, societies, and HUFs.
Since these accounts involve more than one decision-maker, extra checks are necessary. Registration papers, PAN details, and authorised signatory information are usually reviewed together. These documents help confirm who controls the account and who can place instructions. Once approved, these entities use the account much like individuals, though reporting rules are slightly tighter.
The Benefits of Opening a Demat Account
Once you submit the documents required to open a demat account and they are verified, you can enjoy the many benefits of a demat account, such as:
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In a demat account, the shares exist only in digital form. This eliminates many problems, such as loss, damage, or delays linked to physical certificates.
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A demat account ensures you can access your holdings in one place, making it easier to track what you own. Dividends, bonuses, and splits reflect automatically. These documents also create a clear ownership record, which is helpful during audits or tax reviews.
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With a demat account, you can enjoy simplified investing. Transfers take less effort, records stay cleaner, and portfolio reviews stop feeling scattered.
Also, read How to Close Your Demat Account Online here.
Conclusion
Apart from these documents required to open a Demat Account, the Depository Participant or your broker might ask you to present additional proof of identity, address, and income. Once all the documents are submitted, verified, and checked by the concerned departments, your account will be opened. Make sure you submit valid documents to make the account opening process faster and hassle-free. After the Demat account is opened, you can explore various stocks or mutual funds and start your investment journey smoothly.
