What Documents Are Required to Open a Demat Account

A demat account is used to hold securities such as shares, bonds, mutual funds, and exchange-traded funds (ETFs) in electronic form. Account opening is carried out through Depository Participants (DPs), including banks and stockbrokers, who act as intermediaries between account holders and the central depositories in India.

The demat account opening process is standardised and governed by regulatory requirements prescribed by the Securities and Exchange Board of India (SEBI). As part of this framework, applicants are required to submit a defined set of documents required for demat account verification to establish identity, address, and banking linkage.

The process generally involves the following steps:

• Selection of a Depository Participant (DP)
  An account is opened through a SEBI-registered DP that is linked to either of the recognised depositories in India.
  

• Submission of KYC information
  Applicants provide basic personal details along with documents required for demat account KYC compliance, in line with SEBI norms.
  

• Furnishing required documents for demat account verification
  This includes proof of identity, proof of address, and bank-related documents as specified under regulatory guidelines.
  

• Verification and validation
  Submitted details and documents are verified through physical or digital verification processes, depending on the mode of application.
  

• Account creation and activation
  Upon successful verification, the demat account is created and linked to the applicant’s trading and bank accounts, where applicable, enabling features such as Ledger Balance in Demat Account for tracking holdings.
   

This structured process ensures uniform documentation standards, regulatory compliance, and accurate record maintenance across all demat account openings in India.

A demat account in India can be opened by individuals and entities that meet the eligibility conditions prescribed under SEBI and depository regulations. Eligibility is determined by the applicant’s legal status, residency, and compliance with Know Your Customer (KYC) norms.

Individuals

• Resident Indian individuals who complete the prescribed KYC requirements

• Non-Resident Indians (NRIs), subject to FEMA guidelines and applicable account structures such as NRE or NRO-linked demat accounts

• Minors, through a guardian, with account operations governed by depository-specific rules
   

Non-Individual Entities

• Hindu Undivided Families (HUFs), through the Karta

• Companies registered under the Companies Act

• Partnership firms, Limited Liability Partnerships (LLPs), and trusts, with authorised signatories

• Other entities permitted under SEBI and depository guidelines

The documents required to open a Demat account are defined under SEBI’s Know Your Customer (KYC) framework and form part of the standard Demat account requirements applicable across registered Depository Participants. These documents are used to verify identity, address, banking details, and eligibility for specific market segments. The document required for Demat account opening may vary slightly by investor category, but the core requirements remain consistent.

Proof of Identity (POI)

Proof of identity is required to establish the applicant’s identity as part of Demat account requirements. Commonly accepted POI documents include:

• PAN Card: Issued by the Income Tax Department, PAN is mandatory for opening a Demat account and serves as the primary identifier for securities market transactions.
  

• Aadhaar Card: Issued by UIDAI, Aadhaar may be used as an identity document and, where applicable, also as address proof.
  

• Passport: A valid passport is accepted as a government-issued identity document.
  

• Voter ID Card: Issued by the Election Commission of India and accepted as proof of identity.
  

• Driving Licence: Issued by the Regional Transport Office (RTO) and accepted as identity proof if valid.
  
  

The name reflected on the PAN card is required to match the name on other submitted documents to meet verification standards.

Proof of Address (POA)

Proof of address is used to verify the applicant’s residential or correspondence address. Documents commonly accepted as POA include:

• Aadhaar Card, where it reflects the current address
  

• Passport, which serves as both identity and address proof
  

• Voter ID Card, if updated with the present address
  

• Driving Licence, displaying the residential address
  

• Utility Bills, such as electricity, water, gas, or landline telephone bills, typically issued within the last three months
  

• Bank Statement or Passbook, usually from the last three months, showing the current address
   

For Non-Resident Indians (NRIs), overseas address proof such as a foreign passport, overseas utility bill, or bank statement is accepted as part of the Demat account documentation.

Proof of Bank Account

Linking a bank account is a standard requirement for Demat account operations, including settlement of sale proceeds and credit of corporate actions. Accepted documents include:

• Cancelled Cheque, bearing the account holder’s name
  

• Recent Bank Statement, displaying the account number and holder details
  

• Bank Passbook, with updated account information
   

These documents help validate bank account ownership and linkage.

Proof of Income (Applicable in Certain Cases)

Income proof is required in specific scenarios, such as for participation in derivatives segments or where additional financial verification is mandated by the intermediary. Accepted income documents may include:

• Salary Slips
  

• Income Tax Return (ITR) acknowledgements
  

• Certificate of Net Worth, typically for high-value accounts
  

• Form 16, issued by an employer

Income documentation is not mandatory for all Demat accounts and applies only under defined circumstances.

Recent Photograph and Signature

A recent passport-sized photograph is required for identity records. A specimen signature is collected for authentication and record verification purposes related to account operations.

Read More: TPIN in a Demat Account

Certain investor categories may be required to submit additional documentation based on account type and regulatory classification.

Non-Resident Indians (NRIs)

NRIs are subject to specific documentation requirements due to their residential status:

• Passport: Indian or foreign passport depending on residency.

• Overseas Address Proof: Such as utility bills or bank statements.

• Mariner’s Declaration Form and Continuous Discharge Certificate: For those in the Merchant Navy.

• Power of Attorney (POA): If a representative opens the account on the investor’s behalf.

• Compliance with FEMA (Foreign Exchange Management Act) regulations is also mandatory.
   

Corporate Entities and Partnerships

Accounts opened in the name of non-individual entities typically require:

• Memorandum of Association (MOA) and Articles of Association (AOA): Governing documents of the company.

• Board Resolution: Authorising the opening of the demat account.

• Partnership Deed: For partnerships.

• Trust Deed: For trusts and similar entities.

• KYC: KYC of authorised signatories.
   

Other Entities

• Hindu Undivided Families (HUFs): Declaration and KYC of the Karta.

• Power of Attorney Holders: Valid POA documentation when acting on behalf of the account holder

Demat account documentation may be submitted through either digital or physical channels, depending on the process supported by the depository participant.

• Online process: Submission of scanned or digital copies of documents, with Aadhaar-based e-KYC enabled through OTP or biometric authentication.

• Offline process: Physical submission of documents along with in-person verification (IPV) conducted at a branch or through an authorised representative.
  
  

Both methods follow prescribed KYC and verification requirements.

Documentation-related issues may result in delays during demat account verification. Common causes include:

• Submitting expired or unreadable documents.

• Name mismatches across PAN, Aadhaar, and bank documents.

• Missing signatures on forms.

• Submitting incomplete KYC forms.

• Using incorrect address proof or outdated utility bills.
   

Such discrepancies are typically identified during the verification stage.

In addition to documentation submitted for a demat account, the process of opening a trading account involves KYC verification with closely aligned requirements and a few category-specific checks. The documents required for trading account activation are defined by SEBI norms and intermediary-level compliance processes, ensuring that identity, address, and financial linkages are accurately recorded.

The documentation set generally includes proof of identity such as a PAN card, which remains mandatory for all trading accounts, along with address proof through Aadhaar, passport, voter ID, or other permitted documents. Bank account proof, such as a cancelled cheque or recent bank statement, is required to link settlement proceeds and transaction debits. A recent photograph and specimen signature are also collected for authentication purposes.

In certain cases, income-related documents may be requested, particularly where trading permissions extend to derivatives segments, as per intermediary risk assessment and exchange requirements. These documentation standards align trading accounts with regulatory KYC and settlement frameworks applicable to Indian securities markets.

Clear awareness of trading account documentation requirements provides necessary context for completing account setup within prescribed regulatory processes.

Eligibility criteria for opening a demat account in India are defined under regulatory and depository guidelines to ensure uniform identification and compliance across market participants. A demat account may be opened by resident individuals, Non-Resident Indians (NRIs), Hindu Undivided Families (HUFs), minors (through a guardian), and eligible non-individual entities such as companies, trusts, and partnerships, subject to category-specific documentation requirements.

For individual applicants, possession of a valid Permanent Account Number (PAN) is mandatory under SEBI regulations, except in limited cases permitted by law. Completion of the Know Your Customer (KYC) process, covering identity verification, address verification, and bank account linking, is required for all applicants. Aadhaar-based or offline KYC methods may be used depending on the intermediary and applicant category.

NRIs may open demat accounts under NRE or NRO arrangements, in line with FEMA guidelines, while minor accounts operate with restrictions on transactions until the individual attains majority. Joint demat accounts are permitted for regular demat accounts, subject to depository rules, whereas certain account variants, such as Basic Service Demat Accounts (BSDAs), are limited to sole or first holders only.

Eligibility is assessed at the time of account opening and may be reviewed if account conditions change, such as residency status or holding thresholds. These criteria ensure standardisation, regulatory compliance, and accurate ownership recording within the securities market infrastructure.

Demat account opening requires submission of specific documents for identity verification, address confirmation, and regulatory compliance. Documentation requirements may vary based on investor category, residency status, and account type. Submitting valid and complete records enables intermediaries to process applications in line with SEBI-prescribed KYC norms and depository regulations.

Read More: AMC Free Demat Account

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.