How to Open Demat Account Without Aadhaar Card

Not too long ago, trading in financial markets was something only the pros and insiders could do. But then the internet changed everything. Now, more and more Indians can invest in the stock market—no need for fancy certifications or piles of paperwork.

Online trading has made the whole process so much easier and more approachable. If you're ready to dive in, all you really need are three accounts: a Demat account (think of it as your digital vault for stocks and securities), a trading account (to buy and sell), and a bank account (because, well, money).

Now, here’s a common question: What if you don’t have an Aadhaar card? Can you still open a Demat account? Yes, you absolutely can! While Aadhaar is a popular choice for ID verification, there are other ways to prove your identity. So, even if you don’t have an Aadhaar card, you can still get started with online investing.
 

What Exactly Is a Demat Account?

A Demat account (short for "dematerialized account") is an electronic account used to hold securities like stocks, bonds, mutual funds, and exchange-traded funds (ETFs) in digital form. It eliminates the need for physical certificates, making it easier to buy, sell, and transfer securities. Commonly used in stock trading, it operates similarly to a bank account but for investments.

How to Create a Demat Account Without Requiring an Aadhar Card?

Opening a Demat account is pretty straightforward. You just need a few basic documents and details to get started. The most critical one? A PAN card—it’s a must-have for all Demat account applications.

Now, here’s a bit of history. Back in 2017, SEBI required you to have an Aadhaar card to buy or sell shares. But good news: that rule was scrapped in 2018. So, you don’t need an Aadhaar card anymore to open a Demat account.

Ready to begin? Make sure you’ve got a valid PAN card. Don’t worry if you don’t have a physical Aadhaar card—an electronic version works just fine as ID proof for the application process.
 

How to Open a Demat Account?

1. To open a Demat account with 5paisa, follow the simple steps mentioned below.

2. Visit 5paisa's website or Download the App to Open a Demat Account.

3. Now enter your phone number and click on “Open account”. 

4. You will receive a verification code on your registered number. Now, input the code and click on the “Apply Now” button.

5. Next, provide your email address and the verification code.

6. Enter your PAN number and Date Of Birth, and click on “Proceed.”

7. Complete the E-KYC process.

8. Complete the Verification Procedure. It will require you to upload a selfie in real time.

9. E-sign the form to complete your account opening procedure.
 

Why is Aadhar Also an Important Document to register a Demat account?

While it is possible to open a Demat account without Aadhaar, there are certain limitations to consider. The process may take longer due to the need for manual document verification. Additionally, Aadhaar eKYC allows instant account activation in many cases, whereas alternative KYC methods may involve delays. Applicants should also note that Aadhaar-based KYC often provides simplified access to additional services, such as linking accounts with other financial instruments.

The Aadhaar card is a vital identification document issued by the Indian government. It serves as both proof of identity and address, playing a significant role in curbing fund misuse and corruption. Additionally, it aids in preventing financial crimes and tax evasion.
 

Conclusion

You can open a Demat account without an Aadhaar card, making it accessible for individuals who may not have this document.

For those interested in exploring opportunities in financial markets, 5paisa offers a convenient platform to open a Demat account. It enables investors to trade various securities online while benefiting from very low brokerage fees, making it an excellent choice for cost-effective and hassle-free trading.