Demat Account for Persons with Disabilities

In India, financial inclusion has been a key focus area for regulatory bodies such as the Securities and Exchange Board of India (SEBI). Ensuring that persons with disabilities (PwDs) can access and participate in the securities market is a vital part of this mission. A demat account—short for “dematerialised account”—allows investors to hold shares and securities in an electronic format, eliminating the need for physical certificates. SEBI has issued specific guidelines to make the process of opening and operating demat accounts more accessible to individuals with physical or mental disabilities, ensuring equal participation opportunities in the market. Persons with disabilities (PwDs) can open a Demat account, either independently if sound, or through a guardian if legally required, with a valid guardianship certificate. An accessible digital KYC process with flexible checks, like accepting thumb impressions, is now mandated.A clear understanding of concepts like the Ledger Balance in Demat helps PwDs and other investors track their holdings and obligations accurately while operating their accounts.

Eligibility is broadly determined by the type of disability and supporting documentation. Individuals who have been certified as persons with disabilities under the Rights of Persons with Disabilities Act, 2016, are eligible. This includes:

• Physical disabilities such as locomotor disability, visual impairment, or hearing impairment.
  

• Intellectual disabilities, autism spectrum disorder, specific learning disabilities, and mental illness.
  

• Multiple disabilities as defined under the Act.
  

The eligibility is verified through a disability certificate issued by a recognised medical authority.

In certain cases—particularly for individuals with mental disabilities—a guardian or legal representative may be required to operate the demat account on behalf of the account holder. This guardian must be appointed under the provisions of the Rights of Persons with Disabilities Act, 2016 or through a legal process such as a court order.

The guardian will be responsible for compliance with Know Your Customer (KYC) requirements and will act as the authorised signatory for account-related transactions.

The following documents are generally required:

• Valid disability certificate issued by a recognised medical board or hospital.
  

• Proof of identity (PAN card).
  

• Proof of address (Aadhaar card, passport, voter ID, or utility bill).
  

• Passport-size photographs.
  

• If applicable, guardian’s identity and address proof, along with legal authorisation documents.

Opening a demat account for a person with a disability involves these steps:

1. Choose a Depository Participant (DP) – This could be a bank, broker, or financial institution registered with NSDL or CDSL.
   

2. Collect Required Forms – Obtain the account opening form from the DP, which will include KYC documentation requirements.
   

3. Fill in the Details – Complete personal, contact, and nominee details accurately.
   

4. Attach Required Documents – Submit disability certificate, proof of identity, and address proof. If a guardian is involved, submit their documents and authorisation.
   

5. In-Person Verification (IPV) – Depending on the DP, this could be an in-branch visit or a video-based KYC verification.
   

6. Sign Agreements – The DP will require signatures on account operation agreements.
   

7. Receive Account Details – Once approved, the DP will provide a client ID and other credentials.

In addition to POA arrangements, secure transaction authorisation mechanisms such as TPIN in a Demat account play an important role in safeguarding account operations. TPIN ensures that debit instructions are authenticated, adding an extra layer of security for both account holders and guardians.

The Rights of Persons with Disabilities Act, 2016 and SEBI’s operational circulars provide the framework for:

• Simplifying account opening procedures for PwDs.
  

• Allowing for guardian authorisation where applicable.
  

• Mandating reasonable accommodations, such as video-based verification and accessible documentation formats.
  

• Ensuring no discrimination in service provision based on disability status.

A demat account for persons with disabilities is intended to ensure equal access to investment opportunities while accommodating specific needs through supportive documentation and operational flexibility. By following SEBI’s accessibility guidelines and ensuring proper legal authorisation where needed, PwDs can seamlessly participate in India’s growing capital markets.

This content is for informational 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.