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What is a demat account? A demat account helps investors hold shares and securities in an electronic format. This kind of account is also called a dematerialised account. It also helps to keep proper track of all the investments an individual makes in shares, exchange-traded funds, bonds, and mutual funds in one place.
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Document Required For Demat Account What Is Demat Account? Demat Account Opening Documents
What Is Demat Account? • With the aid of a Demat account, it is possible to exchange physical shares while preserving their electronic form. A Demat account is important when you need to trade or hold/store stocks, securities, or other investments related to the capital markets, much as we need a bank account for our online transactions and to save our money. Shares can be acquired and sold using the Demat account both offline and online. A Demat account, which stores all electronic certificates of financial items and performs functions similar to our bank account, is necessary for trading on the stock exchanges.
Demat Account Opening Documents Following are the demat account opening documents: • Proof of identity: Any form of picture identification issued by the government is acceptable. A few examples include driver's licences, passports, voter ID cards, Aadhaar, etc. • Proof of address: A passport, a recent utility bill, an Aadhaar card, etc. are some examples. The verification of your spouse's address is also acceptable. • Proof of income: This is only necessary if you want to trade certain specific kinds of securities, like derivatives, futures, and options. These are necessary documents to open a Demat account if these are the investment alternatives you select. Recent tax returns, bank statements, and other types of proof of your income may be requested from you.
Proof of bank account: To open a Demat account, this papers must be filed. The depository participant opening your account can accept a recent bank statement or a voided check. • PAN card: Your permanent account number must be attached to the other essential paperwork for the Demat account. This makes it possible for the income tax division to keep an eye out for any tax fraud. • Photographs: Depending on your broker, you can be requested for 1-3 recent photographs.
