DEMAT is an abbreviation for Dematerialization, which means to convert physical shares and securities into electronic form. A Demat account provides a facility to hold all the investments a person makes in shares, exchange-traded funds (ETF), bonds, Mutual funds, and government securities in an electronic form. Earlier shares were in physical form (share certificate), which increases the risk of loss of shares and forgery. The Security and Exchange Board of India (SEBI) has made it mandatory for everyone who wants to trade in the Indian stock market to have a DEMAT and a Trading account.
This might come as a surprise to you but you don’t have to be 18 to hold a Demat account in your name. In fact, there is no minimum age to invest in the stock market. An account can be opened by the parent/ guardian in the name of a minor by submitting their respective documents. After reaching the age of 18, the depository participant will send an advisory to the person in order to get KYC documents to open and transfer details to a new account.
PAN (Permanent Account Number) is a necessity when it comes to opening a Demat account, you’ll need to submit a copy of PAN Card & KYC documents while opening the account.
In order to open a DEMAT or a Trading account, a person needs to submit the following documents, in addition to PAN:
Proof of Identity (POI): Documents like Voter ID, PAN card, Passport, Driving License, electricity bills, telephone bills, and ID cards with the applicant's photo issued by the central or state government can be submitted as Proof of Identity. (Any one of these)
Proof of Address (POA): Documents like Ration card, Passport, Voter ID, Driving License, Bank passbook or Bank statement, verified copies of electricity bills, and Telephone bill of fixed-line can be submitted as Proof of Address. (Any one of these)
Proof of Income: 6-month bank statement, Net worth certificate, 3-month salary slip, Income Tax Return Statement. (Any one of these)
Bank Proof: 6-month bank statement, Cancelled cheque, Front Page of Passbook (Any one of these)
Signature on white paper
ATS provides a Free Demat account opening with the lowest brokerage. The entire process of opening a DEMAT account can be done online within 10 minutes.
Click Here if you still have more questions on how to open a Demat account
Click here for Demat Account opening Offline
For further queries regarding investments, financial planning and guidance, please call us at +91 7305923322
Please write to us at email@example.com
To read more posts from ATS, check our blog at https://adityatrading.in/
This report is only for the information of our customers. Recommendations, opinions, or suggestions are given with the understanding that readers acting on this information assume all risks involved. The information provided herein is not to be construed as an offer to buy or sell securities of any kind. ATS and/or its group companies do not as assume any responsibility or liability resulting from the use of such information.