- In the realm of the equity account opening, it is always better to know the process to open a demat account so as to make the journey smooth.
- One of the important aspects of your opening of a demat account is the list of the documents that need to be submitted for the application to go through successfully.
- There is a complete list of the documents that have been prescribed by SEBI that are also required to be verified in 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.
- Also, here PAN is the basic document, and the proof of identity and the proof of residence are normally considered as separate documents other than the PAN card.
- This is an important process to open the demat account.
- One of the most basic documents that is required to open a demat account is a PAN card.
What documents should I submit for proof of identity?
- The depository participant (DP) will be accepting any of these documents as proof of identity, subject to verification and ratification with the original documents.
- DP will accept any unique identity card issued by the recognized government authority.
- However, this should also 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 will include a passport, Aadhar card, voter ID card, or your driving license, which is issued by the Indian Regional Transport Authority (RTA).
- Please take care to ensure that the name is spelt exactly the same as on the DP form.
- In addition to the above popular documents used as proof of identity, SEBI has also spelled out a list of other documents that can be used as proof of identity.
- DP will recognize any ID card or the document affixed with the latest valid photograph issued either by the central government, state government, government departments, statutory bodies, public sector undertakings, or the scheduled commercial banks.
- Therefore, the ID cards issued by colleges affiliated with the recognized universities will be accepted.
- The identity cards issued by the statutory bodies such as ICAI, ICWAI, Bar Council, and ICSI to its members are also acceptable.
What documents should I submit as proof of address?
- Any ID card issued by a statutory authority with the address clearly mentioned will be acceptable, like the 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 also better to get the statement attested by the bank.
- Normally, even utility bills like the landline telephone bill, electricity bill, water bill, and gas bill are valid if the address is clearly mentioned and the bill is not more than 3 months old.
- In case you live in an owned house, the registered sale deed is a valid document as proof of address.
- However, if you are living on a lease and license, then a copy of the registered lease agreement is accepted.
- Ensure that the police verification is complete.
How to open a demat account if you don’t have the PAN card?
- As it has been clearly stated earlier, the PAN card that is issued by the Income Tax authority is the primary document for opening your demat account.
- In case you don’t have a PAN card, then you can apply for the PAN in form 49A and submit a copy of the filled form to your DP.
- This will be accepted for opening the DP account, and once the PAN number is allotted, you can update it in your record.
- How to open the DP account in the absence of original document copies?
- The basic rule for opening a demat account is that you should submit self-attested photocopies of the documents and also carry the original ones with you for verification.
- In case you don’t have the 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 will become acceptable and will be considered to be as good as original.
Conclusion
All you need to do is to follow a proper process for opening an equity demat account.
Frequently Asked Questions (FAQs)
Q1) What are the types of trading?
4 popular trading types are scalping, day trading, swing trading, and position trading.
Q2) What type of account is an investment account?
A trading account is called an investment account.
Q3) What are the 3 main accounts for trading?
The 3 main accounts for trading are a bank account, a trading account, and a demat account.
Q4) Which type of trading is best?
Long-term trading is the best as well as safe.
Q5) Which account type is best for trading?
The standard account type is best for trading.
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