Opening a demat account is the most crucial step an investor takes to start their investment journey. One must provide essential information, submit documents online, and complete identity verification processes to open a demat account. Irrespective of the type of demat account, the type and number of documents remain the same. A zero AMC demat account that is free from any annual maintenance charges is easy to open through a simple and easy verification process. Investors must be aware of the different documents needed to open a demat account. These have been listed below:
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Identity Proofs:
Investors to open a zero AMC demat account must submit identity proofs like Adhaar card, voter card, PAN card, passport, or driver’s license. A digital version of the ID proof is essential and submitted to initiate the identity verification process for opening a demat account.
Address proofs:
Investors have to submit address proofs as well as other documents necessary to open a zero AMC demat account. These may include an Adhaar card, passport, driving license, bank statement, and other documents that mention complete address details. One must however take complete precaution when submitting a document as an address proof. The proof must include complete address details and must be valid as well.
Income Proof:
To open a zero AMC demat account, investors must even submit income proofs to enter into futures and options, and derivatives, etc. These include salary slips from employer, Form 16, Bank statements, or ITR documents providing details of annual income. Submission of sufficient income proofs helps expedite the process of the demat account opening.
Bank proofs:
Investors have to submit bank proofs to initiate and complete the process of linking a bank account with the demat account. The official bank account must be linked with the demat account of the investor to accept and transfer funds. The bank proofs include documents such as a cancelled cheque with the official bank account details, bank statements, or a bank passbook. Investors must ensure the documents submitted are valid and verified to complete the bank account linking process easily.
Photo and signature:
Investors even need to submit original passport-sized photographs and a digital signature for a zero AMC demat account opening. One can open NRI demat account online, a zero demat account, and any other type of demat account easily after submitting all the essential documents. However, one must make sure the photo is recent and matches the requirements as specified by the broker.
Nominee information:
A demat account opening process requires submission of essential documents and proofs to complete the nominee registration process. The nominee serves as the official person who will receive the proceedings or can access the demat account in case the original owner meets with any unforeseen circumstances. Nominee details like name, address, identity proofs, and relationship with the demat account holder are essential for demat account opening.
Conclusion:
A zero AMC demat account requires the timely submission of all the essential documents. Investors can select between online and offline modes to open a demat account. However, due to the ease of process and overall convenience, investors should opt for online document submission for a paperless and seamless process.