Eligibility Criteria and Documents Required for Opening a Demat and Trading Account
Eligibility and Documents for Demat and Trading account
If you are looking to invest in the share market, opening a Demat and Trading Account will be your first step; however, you should meet the eligibility criteria and submit the necessary documents for opening a Demat account
Demat Account stores the shares in digital mode and eliminates the risk associated with the physical share certificates such as loss, theft, forgery, etc. Since shares are traded in digital mode, Demat account is a prerequisite. Along with Demat Account, you need a trading account to transact in the share market. Trading account helps place buy and sell orders during online trading.
To open a Demat and Trading Account, you can approach any SEBI and Exchange registered entity such as a bank or a stockbroker.
Eligibility Criteria to open Demat and Trading Account
Bajaj Financial Securities is a depository participant with NSDL and CDSL and a registered member of NSE and BSE for equity and equity derivative segment. We offer Demat and Trading Account with which you can trade in equity and equity derivative segment of NSE and BSE.
To open Demat and Trading Account online with us, one must fulfil the below eligibility criteria:
- An individual must be an Indian citizen residing in India
- Individual must be above 18 years of age
- Have a valid PAN Card
- Have valid proof of address document (Aadhar, Voter ID, Passport, Driving License, Utility Bill not more than 3 months old)
Documents Required to open Demat and Trading Account
While signing up for the Demat and trading account, you will have to submit a few documents. Bajaj Financial Securities provide you 100% digital process to open an account, so you can just upload the soft copies of the documents and submit the application online.
Below are the Documents Required for Opening a Demat Account
- PAN Card: PAN card is mandatory. Ensure that your photo and signature are clearly visible./li>
- Photo: Your passport photograph.
- Signature on white paper: Sign on a white paper and take a picture of it. The signature should be matching with the one on your PAN card.
- Address Proof: You can submit any of these documents as address proof- Voter ID Card, Driving License, Aadhar Card, Passport, Utility Bill not more than 3 months old, Last 3 months bank statement
- Bank Proof: Bank proof is needed to link your Demat and trading account with a bank account, so you can add money from your bank account to the trading account to start trading and also withdraw money from your trading account to the bank account when needed. Besides, if you hold shares of a company that declares a dividend or pays interest, the issuer company will credit the payable amount in your bank account. You can provide any of the below documents as bank proof: cancelled cheque, passbook, 6-month bank statement. Ensure that the IFSC code and Bank Account number is clearly visible.
- Income Proof: Income proof is required if you want to trade in Futures and Options. You can submit any of these documents as income proof - 6-month bank statement, Net-worth certificate, 3-month salary slip, ITR statement, Demat holding statement or Holding report.
Keeping these documents handy will ease the Demat Account opening process, and you can open an account in less than 15 minutes. With Bajaj Financial Securities you can open an account online through an easy account opening process. Just visit the account opening form, enter your basic details like name, address, PAN, etc., upload the documents, perform in-person verification online and e-sign the form using Aadhar registered mobile number. So why delay further? Open your Demat and Trading Account right away and start investing in the share market!
Disclaimer
Investments in securities market are subject to market risk, read all the related documents carefully before investing. Visit our website for other Terms & Conditions.
Stock Broking services are provided by Bajaj Financial Securities Limited which is 100%https://www.bajajfinservsecurities.in/terms-conditions subsidiary of Bajaj Finance Limited and registered with BSE Ltd. (BSE) and National Stock Exchange of India Limited (NSE)
We collect, retain, and use your contact information for legitimate business purposes only, to contact you and to provide you information & latest updates regarding our products & services.
Attention Investors
Avoid unauthorized transactions in your Demat/Trading Account. Update your email Ids/ mobile numbers with your Depository Participant/stock brokers. Check information/ alerts of your all debit/ transaction and other important transactions in your Demat /Trading Account directly from NSDL/CDSL/ Exchange at the end of the day.
This notice is provided in the interest of the investors.
SEBI Registration No.: INZ000218931;BSE Cash/F&O (Member ID: 6706);NSE Cash/F&O (Member ID: 90177);DP registration No : IN-DP-418-2019;CDSL DP No.: 12088600;NSDL DP No. IN304300;AMFI Registration No.: ARN – 163403
FAQs
Can I change my address in Demat account?
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 DP with the necessary documents as proof of the modification. The request will be verified by the DP before carrying out the modifications.
Is Aadhaar mandatory for opening demat account?
Aadhaar Card is not mandatory to open a Demat Account. Aadhar Card can be submitted as address proof while opening Demat Account. However, in case Aadhar Card is not available, any of the following documents can be submitted as address proof to open Demat Account: Voter ID Card, Driving License, Passport, Utility Bill not more than 3 months old, Last 3 months bank statement
Can I open demat account without broker?
Demat Account can be opened through a Depository Participant, which can be bank, broker, Public Financial Institution, Non-Banking Financial Company, or other institutions fulfilling the criteria laid down by the depositories. National Securities Depository Ltd. (NSDL) and Central Depository Services (CDSL) are the two depositories in India. A list of DPs associated with each depository can be found on their website.
What are the benefits of a Demat account?
Demat Account has several benefits-
i) Trade of shares of all the listed companies is settled in demat mode. This has been made compulsory by SEBI.
ii) It eliminates the risks associated with physical certificates, like delays, thefts, mutilation, loss, etc.
iii) Shares can be transferred securely and faster in digtal mode through Demat Account as against physical mode
iv) Demat Account provides the facility to add nominee
Who is eligible for the Demat account?
Everybody is eligible for opening a demat account including a minor, as long as a PAN card is created in his/her name. You need to furnish your PAN card, proof of address and copy of a cancelled cheque for registering the bank account. The original has to be shown to the brokerage (depository participant). A minor's account is handled by an adult who is a nominee of the demat account till the minor becomes a major.
How can I open a Demat account without proof of income?
Opening a demat account does not require proof of income but requires the following documentation -
1) PAN Card
2) Proof of address for verification - Electricity bill in your name, bank account, Aadhaar card etc
3) Copy of cancelled cheque or bank account details
Thus, whether you are a housewife or a minor - a demat account can be opened under your name without any proof of income. Although, the PAN card is essential to track your spending patterns and tax filing records.
Is PAN card mandatory for Demat account?
Yes. The PAN card is essential for opening a demat account as it is mandatory for all financial transactions as mandated by SEBI. The PAN card is a way to track the investor’s holdings as a unique identification which can be matched with his income tax filings. Thus, even if you are a minor or a housewife, if you have a valid PAN card, it can be used to open a demat account and start investing.
Is Cancelled Cheque mandatory for Demat account?
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 cancelled cheque along with your approval in the form allows the DP to debit and credit your account with the proceeds of the stock transaction.