Open Demat Account without Aadhaar Card
For years, trading has been viewed as an exclusive domain in which only seasoned experts or insiders can succeed. However, with the advent of online trading, there is no more a need to manage the hassles of physical certificates and endless paperwork.
The process for how to open a demat account online has become incredibly convenient and only requires minimal documentation including basic proofs of identity such as a PAN or Aadhaar card. But, there is another way as well, which is to open a Demat account without an Aadhaar card.
What is a Demat Account?
Demat stands for ‘dematerialisation’ which refers to the process of converting physical securities, into the electronic format. Demat accounts are essentially the modern answer to the age-old problem of holding securities in a safe and manageable way. Moreover, they can easily be linked to your trading and bank accounts to serve as an efficient means of trading in securities.
Why Open a Demat Account?
There are many reasons why Demat accounts have quickly become an essential, almost default account to have when trading in modern times.
Opening a Demat account ensures that your securities are stored safely and remain free from risks of theft or unauthorized access. Moreover, by the virtue of being online, they also provide a convenient means of accessing your securities at any time.
Opening a Demat Account without Aadhaar Card
The process of opening a Demat account is quite convenient and requires specific documents. Some of these documents are mandatory, while others offer options for the applicants.
Out of these, the only document that is mandatory for every Demat account applicant is a PAN card. Previously, in the year 2017, the Securities and Exchange Board of India had made the Aadhaar card mandatory for the purchase and sale of shares. However, in 2018, this condition was reversed.
Therefore, if you wish to currently open a demat account without an Aadhaar card, you can certainly do so. You must only ensure that you have a valid PAN card. Even without the physical copy, your e-Aadhaar card can still be submitted as a proof of identity while opening your demat account.
How to Open a Demat Account?
Opening a Demat Account is a simple procedure with the following steps:
- Start by visiting the website of your preferred Depository Participant (DP). If you choose a DP like IIFL, you can even open a free demat account online.
- On the website, select the ‘open a demat and trading account’ option.
- You will then be directed to fill out account opening applications and be requested to upload scanned copies of essential KYC documents.
- Post that, read the agreement presented by the DP and if found satisfactory, sign the document by affixing your signature.
- Once all the relevant documents are submitted, your application will be processed by the DP.
Conclusion
It is not necessarily required to have an Aadhaar card to open a demat account , you can join thousands of traders across the country and explore the opportunities presented by the financial markets yourself. All you need to do is open a demat account, as well as a trading account with IIFL wherein investors and traders, can avail of an all-in-one account through which you can trade in multiple securities online, at your convenience.