Eligibility parameters for demat account
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Nationality
Individual should be a resident citizen of India
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Age
An individual should be 18 years or above
Documents required for demat account
To open a demat and trading account, you need to submit these documents:
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Identity proof
PAN card is mandatory (ensure your photo and signature on the card are visible)
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Address proof (any one of these)
Passport, driving licence, voter ID, Aadhaar card, or bank account statements for the last 3 months
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Income proof (any one of these)
6 months bank statement, net-worth certificate, 3 months salary slips, Income Tax Return (ITR) statement, demat holding statement, or holding report
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Sign on a white paper and take a picture of it (the signature should match the one on your PAN card)
Signature on white paper
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Bank proof (any one of these)
Cancelled cheque, passbook, bank account statements for the last 6 months
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Photograph
One passport size photograph is required
Demat and trading account is prerequisite for investing in the share market. Demat account stores the shares in digital mode and eliminates the risk associated with the physical share certificates such as loss, theft, forgery, etc. Bajaj Financial Securities provides a 100% digital process to open an account, so you can upload the soft copies of the documents and submit them online.
Frequently asked questions
Yes, you can modify your address in the demat account. For that, you have to fill an account modification form, sign it and submit it to your Depository Participant (DP) with the necessary documents as proof of the modification. The DP will verify the request before carrying out the changes.
Aadhaar card is not mandatory to open a demat account. However, it can be submitted as address proof while opening a demat account. The other documents that can be submitted as address proof to open a demat account are voter ID card, driving license, passport, utility bill not more than 3 months old, and bank statement of last 3 months.
Any individual who is a resident of India and 18 years old or above is eligible for opening a demat account, provided he/she has a PAN card. You need to provide your PAN card, proof of address and a copy of a cancelled cheque for registering the bank account. The original has to be shown to the brokerage (depository participant).
Yes, you can open a demat account without income proof, as it is optional. Here are the documents you need to open a demat account.
- PAN card
- Proof of address for verification - electricity bill in your name, bank account, Aadhaar card, etc.
- Copy of cancelled cheque or bank account details
Thus, whether you are a housewife or a minor (18 years old in this regard) – you can open a demat account under your name without any proof of income. Although, the PAN card is essential to track your spending patterns and tax filing records.
Yes, a PAN card is essential for opening a demat account as it is mandatory for all financial transactions, as stated by SEBI. In addition, the PAN card is a way to track the investor’s holdings as a unique identification that can match with his/her income tax filings. Thus, even if you are a minor or a housewife but have a valid PAN card, you can open a demat account and start investing.
Yes, a cancelled cheque is mandatory for opening a demat account, as bank account details are required for the proceeds of selling transactions. Also, when you order stocks, the amount needs to be debited before the stock can be purchased on the exchange. Thus, the approved cancelled cheque in the form allows the depository participant to debit and credit funds from your account during the stock transaction.
