Relying on a single source of income in today’s world involves risk. With the outbreak of the recent pandemic, having the right financial and healthcare planning has become a must one for all. So how can you grow your money? Invest!
The first thing you need is a Demat account. Opening a Demat account can unlock doors of opportunities that you have never known. With careful risk and proper planning, investing for the long term can help you grow your money and achieve financial independence in your life.
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Why Should You Open A Demat Account?
Opening a Demat account for trading in the stock market has multiple benefits:
- A Demat account holds your shares and securities in an electronic format. Unlike physical shares, there are no chances of misplacing e-shares.
- There is no chance of forgery or theft as a Demat account is highly protected.
- The processing time of transferring electronic shares is less in comparison to that of physical shares and certificates.
- A Demat account involves a lower cost in holding your stocks as there is no paperwork and stamp duty with electronic shares.
- There are multiple access points such as mobile, desktop, laptop, tab, etc. to use your Demat account.
- You can easily convert and reconvert your shares by instructing your DP (Depository Participant) with the help of a Demat account.
How To Open A Demat Account?
With the advent of online trading, it has become incredibly convenient to open a Demat account. With minimal documentation that includes:
- Identity proof (Aadhar/Voter Card)
- Income proof (PAN Card)
Other Documents Include:
- Cancelled Cheque (Any commercial bank)
- Valid photograph
- Signature on a white paper
- Residential proof (Utility bills/Driving License/Passport)
Your account will get active within 3-7 working days after submission and verification of your documents.
How To Open A Demat Account Without An Aadhar Card?
There are certain mandatory documents required to open a Demat account, while others are optional. Having a PAN card is mandatory. But is it the same with Aadhar Card? Well, let’s find it out.
In 2017, the Securities and Exchange Board of India (SEBI) made it mandatory for Demat applicants to have an Aadhar Card. Without an Aadhar Card, investors would not be able to purchase and sell the shares. However, in 2018, this mandate was reversed by SEBI.
So, if you wish to open a Demat account without an Aadhar card, you can certainly do so. You can provide an e-Aadhar card as proof of identity instead of sharing your physical copy. You can simply switch to eMudhra in case you are facing any other issues:
- Aadhar card not linked with mobile number
- OTP issue
- Website server issue
- No incoming SMS service on the mobile number
Conclusion
Trading in the stock market requires a Demat account. And now that you know that you don’t necessarily need an Aadhar card to open a Demat account, you can soon have your account to start investing.
