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How to Open a Demat Account
A Demat or Dematerialised account is a virtual locker that stores all your financial assets in digital form. A Demat account enables you to buy and sell securities at the click of a button eliminating tedious paperwork. A Demat account is not just limited to shares but also stores mutual funds, government bonds, debentures, exchange-traded funds, unit-linked insurance policies, etc. It is mandatory to have a Demat and trading account to trade in the Indian stock markets.
While the Indian markets are overflowing with the so-called ‘best Demat accounts’, Samco, awarded as the best equity broking house truly emerges as the best Demat account in India with unique features such as ‘BTPT’ i.e. Buy Today Pay in Two Days, StockPlus - a stock pledging facility and many other features detailed in our article 17 Reasons Why Samco is the Best Demat Account in India
While most Indian stockbrokers are still stuck with lengthy paperwork and complicated account opening formalities, Samco, a true leader and innovator has designed an efficient 5-minute Demat account opening process. Let us understand how to open a Demat account with Samco, the best equity stock broker in India.
Steps to Open Demat Account
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Step 1: Fill in your KYC details
Visit https://www.samco.in/ and fill in your KYC details like PAN, income and occupation details, address, email ID and mobile number, bank account, and nomination details.
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Step 2 – Upload your documents
Upload all the necessary KYC documents for verification.
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Step 3 – Digitally sign your application
Once you complete steps 1 and 2, you will be redirected to the UIDAI Aadhaar portal where you will receive an OTP on your Aadhaar linked mobile number and email ID. Once you enter the correct OTP, your application will be automatically signed and the Demat account opening formalities would be complete.
You will soon receive the official confirmation from Samco and within 24 hours your Demat and trading account will become functional.
Follow the above steps to open your Demat and trading account with Samco. Read more
Documents required to open a Demat account - Individual
- PAN Card
- Photograph
- Proof of Address – Any one of driver’s license, Aadhaar card, recent electricity or telephone bill, voter ID card, or rent/lease agreements
- Bank Proof (Cancelled cheque or front page of the passbook)
- Income Proof – Bank Statement/ Demat Holdings Statement/ Form-16
- Signature (matching the signature on your Pancard)
Check out this step by step video on how to open a Demat account
FAQs on how to open a Demat account
Now that we understand how to open a Demat account, let us look at the documents required by companies, HUF, and partnership firms to open a Demat account.
Documents required to open a Demat account - Non-individual investors
A Hindu Undivided Family is a separate entity wherein the assets of the family members are pooled together and the tax is paid collectively. Apart from Hindus, Jains, Buddhists and Sikhs can also form a HUF. As per taxation, the assets of the members and the HUF are taxed separately.
Documents required to open a Demat account - Hindu Undivided Family (HUF)
- PAN of HUF
- Bank pass-book/bank statement of the HUF
- KYC Details of the Karta of the HUF – PAN, Proof of Address, Photograph
- In case, derivatives segment needs to be activated for HUF - 6 months bank statement / Latest ITR Copy of HUF
A HUF account cannot be opened online and a physical application needs to be submitted. Download the physical Demat account opening form for a HUF Account here.
Important Points to note:
- Signature of all coparceners shall be required on the POA page.
- Signature of Karta shall be required on all pages of the account opening form and across photograph on form.
Documents required to open a Demat account - Partnership firm
- Comprehensive financial statements of the firm for the past 2 years consisting of balance sheet, profit and loss statement and Income tax returns.
- For registered firms, certificate of registration is mandatory.
- Self-certified copy of partnership deed.
- List of authorised signatories along with specimen signatures on the letterhead of the partnership firm.
- KYC documents of all partners – PAN Card, Proof of address, photographs.
- Bank proof of partnership firm – Statement should be in the name of the firm.
Important Points to note:
- Signature of all partners shall be required on the POA (power of attorney) page.
- Signature of all authorised signatories shall be required on all pages of the account opening form and across photograph on form.
A Partnership firms Demat account cannot be opened online and a physical application needs to be submitted. Download the physical account Demat Account opening form for a partnership firm from https://www.samco.in/samco-resources
Documents required to open a Demat account - Company
- Comprehensive financial statements of the Company for the past 2 years consisting of balance sheet, profit and loss statement and Income tax returns.
- Certified copy of the latest shareholding pattern of the company including details of ultimate beneficial owner (UBO) duly certified by the company secretary/full-time director/MD.
- KYC documents of full-time directors and PAN Card, Proof of address, photographs of at least 2 directors.
- KYC documents of promoters and ultimate beneficial owners – PAN Card, Proof of address, photographs.
- Certificate of incorporation.
- Memorandum and Articles of Association.
- List of authorised signatories along with specimen signatures on the letterhead of the Company.
- Certified copy of Board Resolution enabling investment in securities markets and authorising signatories to operate the account.
- Latest Bank statement in the name of the company.
Important Points to note:
- Signature of all authorised signatories shall be required on POA (power of attorney) page.
- Signature of all authorised signatories shall be required on all pages of the account opening form and across photograph on form.
Companies’ Demat account cannot be opened online and a physical application needs to be submitted. Download the physical account Demat Account opening form for a company from https://www.samco.in/samco-resources
[Suggested Reading: 17 Reasons Why Samco is the Best Demat Account in India]