Is Aadhaar mandatory for demat account in India?

Short Answer

Absolutely, your Aadhaar card is mandatory to open a Demat account online. Although if you want to open your account without providing Aadhaar, then you'll have to do it through the offline method. Consequently, you will require a valid Aadhaar card to complete your Demat application process

Detailed Answer

Is Aadhaar Card mandatory for opening a Demat account?

In short, Yes! Your Aadhaar card is mandatory when applying for a Demat account online. In order to verify your proof of identity. The Indian market regulator SEBI (Securities Exchange Board of India) has made it compulsory for all brokers to link all the Demat accounts of applicants with their PAN cards, although the Aadhar card is necessary if you are trying to open your account online.

In addition to that, your mobile number should be also linked to your Aadhaar card in order to complete the authentication process. While confirming your identity, you will receive an OTP (One Time Password) on your registered mobile number to verify the process. Without this step, your application would not get completed. Therefore, if your mobile number is unregistered with your Aadhaar card, then get it done before applying for a Demat account.

If you fulfill these two requirements, you can easily complete the application process, provided you possess the other documents like a Bank account, PAN Card, etc.

Tagged With: aadhaar cardidentity proofgovernment identitydemat accountindian stock marketstock trading
Categories: Demat
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Can we open demat and trading account without Aadhaar card in India?

Yes, you can open a trading and Demat account without an Aadhaar card but it's not possible to do that in the online method. To open your account without an Aadhaar card, you will have to visit the broker's branch and complete the process there.

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You can open more than one demat account as long as you open them with separate depository participants. It is completely legal to own multiple demat accounts but you cannot have more than one account with a stockbroker.

Is opening a demat account free in India?

Yes opening a Demat account in India might be free with some brokers but not all. Apart from the opening charges, a Demat account is not completely free. You will have to pay an Annual Maintenance charge or Demat fee, every year.

How much money is required to open a Demat account in India?

Many Indian brokers allow you to open your Demat account for free, whereas some charge a nominal fee of Rs 200 to Rs 500. Although there are some recurring charges that you have to bear such as annual maintenance charges, Demat charges, etc.

Can I trade or invest Rs 100 in the share market of India?

You can definitely trade or invest Rs 100 in Indian stock markets. There are no monetary requirements to enter the stock market hence you can buy any share that is trading under Rs 100. Apart from direct stock investing/ trading, there are some indirect ways to own shares over Rs 100. This can be done through Mutual Funds.

Can I open 2 demat accounts with the same bank account?

Absolutely, you can open two or more demat accounts with one single bank account. You can, later on, add other bank accounts to your demat account as per your requirements.

How will the T+1 settlement cycle affect Indian stock markets?

The T+1 settlement cycle is set to bring in many advantages to traders as investors as there will be an increase in liquidity and trading volume. There will be a subsequent reduction in the brokerage defaults and settlement auctions. On the other hand, there could be some problems like mismatch in liquidity among exchanges, FPI complications, etc.

What are advantages of opening Demat and Trading account with 5paisa?

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