If you wish to trade in the Indian stock market, you will need to open a demat account. A demat account holds all your financial instruments like shares, securities, bonds, mutual funds and other trade-related documents at one place. It facilitates simple and seamless trading and investing.
Opening a demat account has become very simple. Moreover, the procedure and list of mandatory documents required to register the account is the same across different firms and institutions.
This article gives you a list of mandatory documents required to open a demat account.
Documents Required To Open A Demat Account
- Proof of Identity
Any government-registered document that has your photograph acts as a proof of identity. It includes your passport, driving license, Aadhaar card, PAN card, voter’s identity card, ration card (provided it has your photograph), etc.
- Proof of Address
Any government-issued card that bears the address of your place of residence acts as a proof of address. It includes your passport, driving license, Aadhaar card, PAN card, voter’s identity card, ration card, recent utility bills (such as electricity bill, gas bill, telephone bill, etc.), recent bank statement or passbook, insurance copy, leave and license agreement or agreement for sale.
- Proof of Income
List of documents admissible as proof of income includes your recent salary slips, form 16, copy of income tax returns acknowledgment slip, certified net worth certificate, copy of certified annual accounts, current bank account statement reflecting the income history of the past 6 months, etc.
- Proof of Bank Account
You will need to submit a cancelled bank cheque as a proof of bank account.
- PAN Card
PAN card is a mandatory document for opening a demat account.
- Passport Size Photographs
You will need to submit a maximum of 3 passport size photographs.
The above mentioned are the basic documents required to open a demat account of an individual.
In order to open a joint demat account, the above-mentioned documents are to be submitted for all the joint account holders. All the joint demat account holders have to also sign the account opening form.
In case of a corporate demat account, along with the basic documents, you will need to submit the copies of the balance sheet of the company for the last 2 financial years, board resolution for investment in the securities market, Foreign Accounts Tax Compliance Act (FATCA) declaration, memorandum of association, articles of association, certificate of incorporation, etc.
In case of a Non-Resident Indian (NRI) demat Account, you will need to submit the original power of attorney, Portfolio Investment Scheme (PIS) letter, Non Resident Ordinary (NRO) / Non Resident External (NRE) bank proof, Foreign Exchange Management Act (FEMA) declaration form, copy of visa / residence permit / work permit, copy of the passport page with India visit stamp from immigration, etc.
Once the above-mentioned documents are submitted and verified, your demat account will be opened. We hope this article has helped you solve your problem of how to open a demat account. Should you require a demat account, you may consider opening it with Kotak Securities.