The Documents Necessary to Set Up a Demat Account
What Exactly is a Demat Account?
A dematerialised Account permits investors to hold securities and shares of the company electronically. Demat account refers to holding dematerialised securities, such as stock, bonds, mutual funds, ETFs (exchange-traded funds), Government securities, debentures, etc.
The Checklist of Documents Needed to Open a Demat Account
ID or POI Valid Documents:
- A PAN card is an essential documents required for Demat account. It needs to have a valid photo.
- The Unique Identification Number (UIDAI) (by the Unique Identification Authority of India) which includes documents such as an Aadhaar Card, Passport, Voter's ID Card and valid driving License.
- A document or ID card with a photo of the applicant obtained from the Central or State Govt and its Departments, Statutory or Regulatory Authorities, Public Financial Institutions.
APO or proof of address is acceptable Documents
- Voters' ID or Ration Card, Passport, Registered Rental or Sales Agreement, Driver's License, Electricity bill, or insurance Copy
- Utility bills include landline telephone bills or Electricity bills under three months old.
- Bank Account Statements or Passbook, which is less than three months old.
- Self-declaration by the High Court and Supreme Court Judges provides the latest address concerning their respective accounts.
Evidence of Income Acceptable Documents
- A copy of the Income Tax Return (ITR) acknowledgement slip from the IT department is essential for the Demat account. Recently completed Salary Slip or other relevant documents proving net income or worth similar to Formula16.
- Net Worth Certificate, which a CA has validated, or a copy of the annual accounts.
- Statement of Bank A/C from the bank currently operating, with the revenue history for the previous six months.
- Document or Statement of Demat Account held that is a Depository Participant eligible. For more information, follow Aaditya Wealthon, a stock market broker in India.
Other documentation that proves ownership of the assets via self-declaration and other documents to support that assertion.
- A cancelled personal cheque.
- Obligatory KYC Update
SEBI has made the KYC process compulsory for free online Demat account opening. The process allows the authorities to keep track of the movement of money into and out of your account. Your bank details accounts are recorded in an unifying database. Genuine and up-to-date KYC documents are essential for preventing illegal acts like the money laundering scam and financing of terrorist activity.
Conclusion
These were vital information and the documents you need to open a Demat Account. Aadtiya Wealthon is a leading financial advisor and stock broking firm that has helped a broad spectrum of investors and traders. If you want to start you investing journey in the stock market, we are just a call away!
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