Eligibility Criteria and Documents Required to open Demat Account

The first step in your investing and trading journey is opening a demat account. It holds all your securities (stocks, bonds, mutual funds, etc.) in a single consolidated electronic format.

If you’re a new investor, understanding the prerequisites and eligibility criteria for a demat account is crucial. 

So, let’s start with the basics.

Who is Eligible to Open a Demat account?

The entities below are eligible to open a demat account. 

• Individual Retail Investors aged 18 years and above. 
• Minors with a PAN card can also open a demat account under the supervision of a guardian.
• Non-Resident Indians (NRIs)
• Hindustan Undivided Family (HUFs)
• Corporate Demat Account for 
• Partnership Firms,
• Limited Liability Partnerships (LLPs),
• Public Limited Companies
• Private Limited Companies, 
• Trusts, Societies, and Partnerships. 

Documents Required To Open a Demat Account

As per SEBI guidelines, the documents below are required for the demat account opening process. 

•  Identity Proof 

• PAN card (mandatory)
• For NRIs, a Portfolio Investment Scheme (PIS) permission letter is required from the Reserve Bank of India, and the Demat account must be linked to an NRE/NRO bank account.
• For companies, a Certificate of Incorporation, Memorandum of Association (MoA), and Articles of Association (AoA) are required. 
• Voter ID 
• Driving License
• Passport
• Aadhaar Card
• Any valid identity card issued by Central or State Government

• Address Proof 

• Voter ID Card
• Driving License
• Aadhaar Card
• Passport
• Ration Card
• Bank account statement or 
• passbook
• Utility bill (electricity, water, gas, or telephone)

• Income Proof (For those who want to  trade in Derivatives – F&O/ Commodities/ Currency) 

• Last 6 months' bank account statement 
• Current Salary Slips/ Form 16
• ITR Acknowledgement Copy
• Demat holdings statement 
• Net-worth Certificate copy
• Cancelled cheque or bank passbook for bank account proof. 

Common Questions Regarding Eligibility Criteria For Demat Account

1. How can I open a demat account? 

You can open a demat account online via 

• SEBI-registered depository participant/stockbroker, 
• NSDL (​​National Securities Depository Limited), 
• CDSL (Central Depository Services), or 
• Financial institutions, like banks. 

2. Is there any minimum age requirement for opening a demat account? 

No, there is no minimum age requirement for opening a demat account. However, if it is a minor's demat account, it must be operated by a guardian until the minor turns 18.

3. Can I open a joint Demat account?

Yes, a demat account can be opened with joint holders. However, a minor cannot be a joint holder in a demat account.

4. What happens if I do not provide nominee details?

If nominee details are not provided, transferring securities in the event of the account holder's demise will become complex and time-consuming.

Read more: How to Know Your Demat Account Number?