A Demat account is similar to any other bank account, except that it is used to hold securities and other financial instruments. The procedure to open a Demat account online is almost the same across different firms and institutions. However, as Angel One strives to make it simple for their customers, the documents required to open a Demat Account are limited.
List of Accepted KYC Documents
In order to open a demat account, you will require certain documents. You will need one proof of identity, one proof of address, one proof of bank account and proof of income. Here is a list of accepted documents required for a Demat Account:
1. Proof of Identity
- PAN Card (mandatory requirement)
- You may also be required to present a Bank Verification letter with a photograph.
- A photo ID card issued by a central or state government body, such as Passport, Driver’s licence, Aadhaar ID and Voter’s ID.
2. Proof of Address
- Proof of possession of Aadhaar
- Driving Licence
- Passport
- Voter ID
- NREGA Job Card – only for offline account opening and not online.
- National Population Register (NPR) letter – only for offline account opening and not online.
Note: You must submit updated and valid documents with your current address within a period of three months of submitting the above documents.
3. Proof of Bank Account
- Latest bank account statement where your account name and account number are evident.
- Personalised cancelled cheque leaf with signature.
However, for online account opening, Angel One validates bank details through IMPS validation or reverse penny drop verification. Cheque leaf upload is a fallback option.
4. Proof of Income
This is only for trading in derivatives such as Futures and Options (F&O):
- A photocopy of the Income Tax Return (ITR) acknowledgement slip submitted to the Income Tax Department during tax filing.
- Last six months’ bank statement.
- Latest salary slip.
Conclusion
Apart from these documents required to open a Demat Account, the Depository Participant or your broker might ask you to present additional proof of identity, address, and income. Once all the documents are submitted, verified, and checked by the concerned departments, your account will be opened. Make sure you submit valid documents to make the account opening progress faster and hassle-free.
After the Demat account is opened, you can explore various stocks or mutual funds and start your investment journey smoothly.
FAQs
Is it possible to open a Demat account online?
Yes, digitisation has helped in making the account opening process very easy. The modern e-KYC process has made the process quick and seamless. Now, you can open a Demat, complete KYC verification, link your bank account, and start trading with just a few clicks online.
How many days does it take to open a Demat account?
With Angel One, your Demat account gets activated within 48 to 72 hours after you complete your application. With the introduction of e-KYC verification and self-attestation, the process has become effortless.
Can we open multiple accounts with a single broker?
You can’t open multiple Demat accounts with the same broker. It is a common practice for many traders to have at least two Demat accounts. One with a full-service broker and another with a discount broker. They switch between the two depending on transaction patterns, frequency, and charges.
Is the Demat account safe?
Securities stored in digital format in the Demat account are safe from theft or damage. However, risks associated with fraud and misuse remain. So, investors need to stay vigilant of any unauthorised activities related to their Demat account. The broker or Depository Participant will send you regular updates via SMS and emails regarding activities on your Demat account, which you need to track to protect your interest.
Can I open a Demat account without Aadhar?
To complete the online Demat account opening process, you must verify your mobile number through the OTP-based authentication process. You can’t open a Demat online if your Aadhaar isn’t linked to your mobile number. Aadhar linking is also important to open a Demat account, and it is a one-time task.
What are the eligibility criteria to open a Demat account?
To get a Demat account, the applicant must be at least 18 years of age, Indian and have an active bank account in India.
Are there any fees levied to open a Demat account?
No. You can open a Demat account on Angel One for free. All you need to do is provide the documents required to open a Demat account.
What are the benefits of having a Demat account?
A Demat account holds details about the securities and investments you own. It eliminates the need for paper documents and keeps your investments in digital form. You can easily check and manage your stocks and other investments online from anywhere.
