The abbreviation “demat” stands for “dematerialized account.” It holds your financial assets, such as shares, bonds, mutual funds, government securities, and exchange-traded funds, and is the equivalent of your bank account in terms of securities (ETFs). It retains them all in a dematerialized or electronic format, thus its name. You benefit as an investor (or shareholder) by owning shares electronically rather than physically. As a result, only a few government-approved documents are required to open a demat account.
Evidence of Identity (EOI) documents necessary to open a demat account include a List of acceptable identification documents:
- PAN card with an authorized picture. Except for individuals who are excused from acquiring a PAN (mentioned in the “Exemptions/Clarifications” to PAN section), this is a necessary prerequisite for all applicants.
- Aadhaar, passports, voter identification cards, and licences have unique identification numbers (UIDs).
- Identity card or document with applicant’s photo: Public Sector Entities, Scheduled Commercial Banks, Public Financial Institutions, Colleges Affiliated to Universities, Member IDs by Professional Bodies such as ICAI, ICWAI, ICSI, Bar Council, etc., and Credit Cards/Debit Cards Issued by Banks are among the Central/State Government and its Departments.
Evidence of Address (POA) List of papers acceptable as Address Proof:
- Passport, Voters Identity Card, Ration Card, Registered Residential Lease or Sale Agreement, Driving License, Flat Maintenance Bill, and Insurance Copies of recent utility bills, such as a phone bill (only landline), an electricity bill, or a gas bill.
- Passbook or bank account statement that is no older than three months
- Judges of the High Court and Supreme Court must declare themselves and provide their new addresses for their accounts.
- Supplied by any of the following as proof of address: Those elected to the Legislative Assembly or Parliament, who are Gazetted Officers, Notaries Publics, or who manage Scheduled Commercial Banks, Scheduled Cooperative Banks, or Multinational Foreign Banks. Identity cards and other documents with addresses issued by any of the following governments or statutory authorities: Colleges connected with Universities, Scheduled Commercial Banks, Public Financial Institutions, Public Sector Undertakings, Statutory/Regulatory Authorities, Bar Council, ICWAI, ICSI, and other Professional Bodies to their Members
- Regarding FII/subaccount: A properly notarized, apostilled, or consularized power of attorney form from the FII or subaccount to the custodians that include the registered address
- The spouse’s name-based proof of address may be approved.
Evidence of banks
You’ll need to provide documentation for the bank account you want to link to your account. If you have one, you can mail your broker a voided check with your name and the paperwork to start an account. You may also submit the voided check and the bank’s IFSC code to the web portal if you create an online account.
A broker wants the following information from you in a bank proof:
- Name of the Account holder
- Bank’s MICR and IFSC codes
Some brokers enable you to submit either the front page of your passbook or your bank statement with your name, MICR and bank’s IFSC number as long as all of the above information is visible. If you have these papers, you can open a demat account in just one step. After contrasting brokers based on aspects like customer service, account fees, and user experience, select one. The Depository Participant or your broker may also need you to provide further identification, residency, and income evidence. Your account will be opened once all the required documents have been submitted, validated, and examined by the relevant departments.
