Demat Account Opening RequirementsDemat account opening requirements awareness is a must if you plan to open a demat account, needed for trading and investing in Indian stock markets. Having a demat account has it's variety of benefits and once you have filled out the demat account opening form provided to you by the DP then after a short time your account will be activated and you will be given a unique number to be used in making trades.
Having a PAN card and savings bank account are mandatory requirements for demat account opening. As a security measure your bank details are required as part of demat account opening. The dividend/warrants issued by the companies will have your name printed on it so that it cannot be misused by another person. It is not a requirement to be major for demat account opening. A demat account in the name of a minor can be operated by a guardian till the minor becomes major.
Procedure of demat account opening
- Subscribe to the services of a Depository Participant in order to open a demat account. A DP is authorised under National Securities Depository Limited (NSDL) and Central Depository Services India Limited (CDSL). Most banks, broking companies, financial intermediaries are Depository Participants.
- You must duly fill up the demat account opening form (DAO form) and sign on the dotted lines wherever required in the form provided by the DP.
- Under the mandate of SEBI, you need to include copies of the demat account opening documents.
- At the time of verification, you need to produce your original pan card for opening a demat account.