Eligibility Criteria and Documents Required to open Demat Account

A Demat account is the standard format for holding securities in India, and opening one requires meeting certain eligibility conditions and submitting specific documents. These requirements vary depending on whether the applicant is an individual, minor, NRI, company, or another registered entity. Knowing these basic prerequisites helps set clear expectations for the account-opening process and ensures the information that follows is easy to navigate.

A Demat account is used to hold securities such as shares, bonds, and mutual funds in electronic form. It replaces physical certificates with digital records and enables the maintenance and recording of securities through depository systems.

What is a Demat Account

A Demat account holds your financial securities in an electronic format. It eliminates the risks of physical share certificates, such as loss, forgery, or damage, and facilitates smoother transactions in capital markets. Managed by depositories like CDSL and NSDL, it ensures safe and regulated access to your investment portfolio.

It also maintains your Demat ledger balance, which reflects the real-time status of your securities after every credit, debit, or corporate action.

Importance of a Demat Account

The following are the key benefits of having a Demat account:

• Essential for buying/selling securities on stock exchanges

• Enables easy transfer of shares

• Required for IPO applications

• Central to receiving dividends, interest, and other corporate benefits

With this foundation, it becomes easier to understand what a Demat account is and why it plays a central role in today’s investment ecosystem.

Many different types of investors can open a Demat account, as long as they provide the necessary identification and comply with regulatory checks. The eligibility extends across individuals, minors, NRIs, and various legal entities, each governed by specific documentation norms.

Resident Individuals

Any Indian resident aged 18 years or above can open a Demat account independently by fulfilling KYC and documentation norms.

Minors

Minors are eligible to have Demat accounts, but these must be opened and operated by a parent or legal guardian on their behalf. Upon reaching 18 years, the minor must update their KYC to operate the account independently.

Non-Resident Indians (NRIs)

NRIs can open Demat accounts under the Portfolio Investment Scheme (PIS) after receiving necessary approvals from the RBI. Such accounts can be either repatriable (linked to an NRE account) or non-repatriable (linked to an NRO account).

Corporate Entities

Companies, LLPs, and partnership firms can open Demat accounts for business or investment purposes. A resolution from the board or partners and corporate KYC documents are mandatory.

Hindu Undivided Families (HUFs)

HUFs can open Demat accounts with the Karta as the primary account holder and submit the PAN card of the HUF.

Trusts and Societies

Charitable trusts and registered societies can open Demat accounts upon presenting valid registration certificates and KYC documents.

Each category follows a specific KYC structure, and providing the correct documents helps ensure smooth verification and account setup.

Demat account age eligibility is flexible, as there is no fixed minimum age for opening a demat account. However, the rules for operation vary depending on whether the applicant is a minor or an adult. This helps ensure that the account is managed appropriately at each stage of the investor’s lifecycle.

Minimum Age for Individuals

There is no statutory minimum age defined by SEBI for opening a Demat account. However:

• Individuals who are 18 years or older can complete their own KYC and operate the account independently
  

• For minors, a guardian, either a parent or a legally appointed representative, opens and manages the account on their behalf until they reach majority.

Age-Specific Scenarios

The level of control over the account changes as the applicant grows older:

• 18+ Years: The individual can open and use the Demat account freely once KYC is completed

• Below 18 Years: A guardian manages the account, and trading rights remain restricted

• On Attaining Majority: The account details must be updated through a fresh KYC process before the individual can operate it independently

These guidelines ensure clarity around the minimum age for a Demat account and help applicants understand how access and responsibilities evolve over time.

When applying for a Demat account, certain documents are necessary to validate identity, address, and banking details as part of the standard KYC and regulatory framework.

Identity Proof (any one)

• PAN Card (mandatory)

• Aadhaar Card

• Passport

• Voter ID

• Driving Licence

Address Proof (any one)

• Aadhaar Card

• Passport

• Voter ID

• Electricity Bill/Telephone Bill (not older than 3 months)

• Bank Passbook/Statement

Bank Proof

• Cancelled Cheque

• Recent Bank Statement (3 months)
  

Income Proof (for Derivatives & F&O segments)

• Latest ITR Acknowledgement

• Form 16

• Salary Slips (last 3 months)

• Net Worth Certificate
  

Photograph & Signature

• Passport-sized photograph

• Signature specimen (physical or digital)

Having these documents organised in advance helps the verification process move forward efficiently, allowing the account to be activated without unnecessary delays.

Demat accounts opened on behalf of minors follow a slightly different process, as additional documentation and the presence of a parent or legally appointed guardian are required to operate the account.

Role of the Guardian

• Can be a parent or court-appointed legal guardian

• All investment decisions and documentation are carried out in the guardian's name

KYC Requirements for Minors

• Minor’s PAN card and birth certificate

• Guardian’s identity, address, and bank proofs

Transfer on Attaining Majority

Once the minor turns 18:

• KYC must be updated with the investor’s details

• A new account may be opened and securities transferred

The guardian manages all transactions and formalities until the minor becomes eligible to handle the account independently.

You can verify your eligibility to open a Demat account through simple online checks offered by most Depository Participants (DPs). These platforms typically allow you to validate basic details such as your PAN, Aadhaar-linked information, and residency status. During this process, the system may also confirm whether your KYC records are already available in the central repository or need updating.

Some DPs additionally provide prompts for missing information, helping applicants understand which documents or details may be required during the account-opening stage.

Many platforms allow applicants to review eligibility requirements online, helping confirm whether submitted details align with prescribed KYC norms before proceeding further.

Applications may occasionally be declined when the information or documents provided do not match official records. Rejections commonly arise from issues such as

- Discrepancies in PAN or Aadhaar details
- Unclear identity or address proofs
- Outdated documents, or signatures that differ from those stored in banking or official records
- In some cases, missing KYC information or incomplete forms may also halt the verification process

Double-checking that all personal details, identification proofs, and signatures are consistent and clearly readable helps reduce the likelihood of such setbacks.

Opening a Demat account is the first step toward participating in India’s financial markets. Whether you're a salaried professional, student investor, NRI, or corporate entity, there is a Demat account structure suited to your profile. Reviewing eligibility criteria, age limits, required documents, and regulatory conditions provides clarity on the account opening process.

This content is for educational purposes only and the same should not be construed as investment advice. Bajaj Finserv Direct Limited shall not be liable or responsible for any investment decision that you may take based on this content.