Many people have started entering the field of trading and investing in the stock market, especially since the pandemic. If you have been planning to invest or trade in the market, you will first need to have an active Demat and trading account. In this article, we will have a look at the required documentation for a Demat account and understand if you can register for a Demat account without income proof.
A Demat account is typically opened with a stockbroker with which you can digitally store your shares. This helps you avoid the risk associated with physically storing your share certificates such as forgery, theft, loss, etc. As shares are traded in digital mode in the current times, it is mandatory to have a Demat account for you to trade. If you don’t already have a Demat account, it is best to go ahead with a Demat account registration with a stockbroker.
While opening a Demat account, you will be asked to submit a certain list of documentation to complete the application process. Here is a list of documents required for Demat account.
1. PAN Card
It is important to have your PAN card ready while applying for a Demat account. Make sure that your signature and photo are clearly visible.
2. Signature On White Paper
Sign on a white sheet of paper and take a clear picture of it.
3. Address Proof
You can submit your Passport, Aadhar Card, Voter ID< Driver’s License, etc. as your address proof.
4. Bank Proof
To link your Demat account and your trading account, bank proof is required. Besides, if you purchase shares in a company that provides dividend interest, the amount will be credited to your bank account. You can provide a cancelled cheque, passbook, or bank statement from the past 6 months as bank proof.
5. Income Proof
You would also be required to submit evidence of income such as a 3-month salary slip, ITR, Form 16, etc.
While evidence of income is considered as part of the documents required for Demat account registration, you can open a demat account with your PAN card, bank proof, and Aadhar card. However, you should be at least 18 years of age. To trade or invest in equity, income proof is not required to open a Demat account. However, if you would like to trade commodities, futures, or options, you would be required to submit proof of income.
In a Nutshell
Now that you know the requirements of opening a Demat account without income proof, you can open a free Demat account with Motilal Oswal. Just reach out to Motilal Oswal to get the registration process started.
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