Your shares and securities are stored electronically in a Demat account. A depository participant (DP), including banks, financial institutions, brokers, or any other entity authorized by SEBI, must be selected to open Demat account . It's time to read the terms and conditions of your chosen DP so that you understand what documents are necessary for your account opening process.
Documents Necessary to Open a Depository Account
Before we get started, let's go over a detailed list of the documents needed to open an account:
One must provide identity proof, proof of address, income, PAN Card, photograph, and a canceled check to prove one's identity.
Identity Documentation
• A valid PAN card with a picture on it. This is something that all applicants must do.
• Unique Identification Number UIDAI, which is printed on documents like the Aadhaar Card, Passport, Voter's Card, and Driving License by the Unique Identification Authority of India.
• Any identity card or document with the applicant's photo that was issued by the Central/State Government, its departments, statutory/regulatory authorities, public sector undertakings (PSUs), etc.
Proof of Address
• Voter ID card, passport, ration card, driver's licence, registered lease or sale agreement of residence, flat maintenance bill or insurance copy
• Utility bills, like those for a landline phone, electricity, or gas, that are no more than 3 months old.
• A statement or passbook from your bank account that is no more than 3 months old.
• Self-Declaration by judges of High Court and Supreme Court, giving their new address for their individual accounts.
• Proof of Address from any of the following sources:
• Bank Managers of Scheduled Commercial, Co-Operative, or Foreign Multinational Banks.
• Gazetted Officer, Notary Public, Elected Representative to Legislative Assembly or Parliament, or Documents issued by any Government or Statutory Authority.
• Identification card or document with an address from any of the following:
• The federal and state governments and their agencies.
• Statutary/Regulatory Authorities.
• Businesses run by the government. (PSUs)
• For FII/sub-account: Power of Attorney document given by FII/sub-account to Custodians (which is duly notarized and/or apostilled or consularized) with the registered address.
A record of your earnings
· Please send a copy of your Income Tax Return (ITR) receipt to the IT department.
· Income or wealth documentation such as a Form 16 is acceptable as long as it is recent.
· Without a Chartered Accountant's certification of net worth, a photocopy of annual accounts will do.
· A bank account statement from the current bank showing the bank's six-month income history.
· Depository Participant's Demat Account Documentation or Statement.
· Self-declaration documents and documents proving ownership of assets are acceptable forms of proof.
· Returned a personal check.
PAN Card
Opening a Demat account with any bank or broker and do Online Trading will require a valid PAN card unless you fall under one of the exceptions listed in this guide's "Exemptions/Clarifications" section.
Photographs
Keep three copies of passport-sized photos on hand when you visit your broker or bank to open a Demat account.
The requirement to Update Your KYC Information
The KYC process has been made mandatory by SEBI to open a Demat account. Tracking your account's transactions allows authorities to keep tabs on your finances. A central database holds all of the information about your bank accounts. The fight against money laundering and terrorism funding cannot be won without current and accurate Know Your Customer (KYC) documentation.
Proof of Documentation for Opening a Demat Account
The following individuals are authorized to vouch for your proof:
· Branches of scheduled commercial banks that are registered in India
· The manager of the branch of any public sector Indian bank in your neighbourhood
· Any court magistrate or judge, as well as the Indian Embassy or Consulate General in the country where you are currently residing, are all examples of notaries public.
The documents must be attested by attaching the signatory's seal, name, and designation to a copy of the original.
Nonresidents of India must open an Indian-based Demat account in two ways. Here is a list of the documents that are required:
· NRO account holders are required to provide proof of their Indian address; those without Indian addresses must provide evidence of their foreign addresses.
· An official letter from the Reserve Bank of India stating that you are eligible to participate in the Portfolio Investment Scheme (PIS)
· If the account type (NRE or NRO) is not mentioned in the bank proofs, a bank verification letter is required. A qualified entity should attest to all copies of the KYC documents.
Conclusion
Open a Demat account and get started investing and trading by MO investor app once you have all of your paperwork in order. Having all of your documents prepared expedites the application process.
