A demat account can be opened with joint account holders. However, a minor cannot be a joint holder in a demat account. There is no minimum balance requirement for holding securities in a demat account.
If you are going to start investing in the stock market, then the first step in your investment and trading is to open a demat account. In this, all your securities (stocks, bonds, mutual funds, etc.) are kept in a single integrated electronic format. It is very important for a new investor to understand the necessary conditions and eligibility criteria for a demat account. Opening a demat account has its own terms and conditions.
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Who is eligible to open a Demat account
According to Groww, individual retail investors aged 18 years or above can open this account. Minors with PAN card can also open a demat account under the supervision of a guardian. Apart from this, Non-Resident Indians (NRIs), (HUF), Partnership Firms, Limited Liability Partnerships (LLP), Public Limited Companies, Private Limited Companies, Trusts, Societies can open demat accounts.
Which documents will be required
PAN Card (Mandatory)
For NRIs, Portfolio Investment Scheme (PIS) permission letter from Reserve Bank of India is required, and the demat account must be linked to an NRE/NRO bank account.
For companies, Certificate of Incorporation, Memorandum of Association (MOA), and Articles of Association (AOA) are required.
- Voter ID
- Driving License
- Passport
- Aadhar Card
- Any valid identity card issued by the Central or State Government
- Voter ID Card
- Driving License
- Aadhar Card
- Passport
- Ration Card
- Bank Account Statement or Passbook
- Utility Bill (Electricity, Water, Gas or Telephone)
- Last 6 months bank account statement
- Current salary slip/Form 16
- Copy of ITR receipt
- Demat holdings details
- Net-worth certificate
- Cancelled cheque or bank passbook for bank account proof.
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