Want a synopsis of this article? Listen to this ♬

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

  • 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.

  • Step 2 – Upload your documents

    Upload all the necessary KYC documents for verification.

  • 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

Q
Can I open a Demat account without a PAN Card?
-
A
No, you cannot open a Demat account without a PAN Card. This is a mandatory SEBI requirement. In case you do not have a PAN, you must first apply for a PAN Card and then apply for a Demat account.
Q
Why do I need to submit my bank details for opening a Demat account?
+
A
It is mandatory to submit your bank account for opening a Demat account since all dividend pay-outs, redemption/extinguishment pay-outs, etc shall be directly credited to your bank account. In case your bank account details are incomplete or incorrect, these payments shall bounce resulting in a loss to investors!
Q
If I already have another Demat account from before with another entity, do I still need to submit all documents for opening a Demat account?
+
A
If you have another existing Demat account and your existing intermediary has updated your information on the KRA registry, then you shall be classified as a KRA registered investor. In such cases, you need not submit your PAN, Proof of address and Photo for opening the account. You shall only need to submit your Bank details in such a case.
Q
What if my Aadhar is not linked to my mobile? Can I still open a Demat account online?
+
A
In case your Aadhar is not linked to your mobile or email, then you shall not be able to complete an Aadhar E-sign. However, you will still be able to digitally sign your application. After digitally signing your application, you shall be required to collect a single page acknowledgement and then your account shall be processed.
Q
Can Non Individual entities open an online Demat account?
+
A
No, non-individual entities cannot open an online Demat account and they shall be required to open a Demat account by submitting a physical form. You can download a physical form from https://www.samco.in/samco-resources
Q
Can a Joint Demat account be opened online?
+
A
No, since a joint account needs to be jointly signed by multiple account holders, a joint account cannot be opened online and shall be opened by submitting a physical form.
Q
What happens after I complete the application and sign the Demat account opening form?
+
A
After your application is completed, the same shall be verified by SAMCO’s account processing teams and once your application is verified, you shall receive a welcome kit with your account credentials. You shall also receive instructions on how to access your account and initiate transactions. In case you do not receive the same within 48-72 hours of opening the account, please raise a support ticket at www.samco.in/support and we shall get it sorted.

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]