How to Open Demat Account Without Aadhaar Card

5paisa Research Team Date: 04 Dec, 2023 09:42 PM IST


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In the past, the trading industry was exclusive to experienced professionals and insiders. However the internet has democratized access to financial markets allowing more Indians to invest without dealing with the hassles of certifications and paperwork.

Internet trading has made it easier for more Indians to access financial markets and invest their money. To get started in the stock market you only need three things; a Demat account, a trading account, and a bank account. A Demat account safeguards your securities and shares.

What if you don't have an Aadhaar card? Can I still open a Demat account without it? The answer is yes. While Aadhaar is commonly used for identification there are alternative methods available to verify your identity. So, don't worry if, you don't have an Aadhaar card you can still open a Demat account online and start your investment journey.

What exactly is a Demat Account?

Demat accounts are online accounts that help you store securities, like stock certificates, in electronic form. 'Demat' stands for 'dematerialization,' which means turning physical share certificates into digital assets. Demant accounts can be easily linked to your trading and bank accounts, making it convenient for financial transactions.

How to Open a Demat Account?

To open a Demat account with 5paisa, follow the simple steps mentioned below.
1.    Visit 5paisa's website/Download App to Open a Demat Account.
2.    Now enter your phone number and click on “Open account”. 
3.   You will receive a verification code on your registered number. Now, input the code and click on the “Apply Now” button.
4.    Next, provide your email address and the verification code.
5.    Enter your PAN number and DOB, and click on “Proceed.”
6.    Complete the E-KYC process.
7.    Complete the Verification Procedure. It will require you to upload a selfie in real time.
8.    E-sign the form to complete your account opening procedure.

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

Opening a Demat account is a straightforward process that requires only a few documents and details from prospective account holders, the most crucial document you need is a PAN card. This is a must for every Demat account application.

In the past, you also needed an Aadhaar card to buy and sell shares, as mandated by the SEBI in 2017. However this requirement was reversed in 2018. So, if you want to open a Demat account today you can open it without an Aadhaar card.

Before you start the process make sure you have a valid PAN card. Even if you don't have a physical copy of your Aadhaar card you can still use the electronic version as proof of identification when opening your Demat account.

Why Should You Open a Demat Account?

Holding stocks in a Demat account has made trading a lot easier for everyone compared to dealing with physical certificates. Several factors have led to the widespread use of Demat accounts which have become essential for modern day traders. These accounts simplify investing in the financial market of your choice and are linked to both your trading and bank accounts.

Another benefit of using a Demat account to store your securities, it protects your securities from theft and unauthorized access. Since Demat accounts are online you can access your securities at any time from anywhere. Also electronic records are secure and cannot be forged or faked, unlike physical certificates.

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

Aadhaar card is an important identification document provided by the Indian government. It serves as both identification and address proof which helps prevent misuse of funds and corruption. It also helps in preventing financial crimes and tax evasion. To complete the KYC process it's also important to link your Aadhar card to your mobile phone number.


You do not need an Aadhaar card to open a Demat account. This blog post provides information on how to open a Demat account without an Aadhaar card. If you want to explore opportunities in the financial markets you can open a Demat account with 5paisa which allows investors to trade in various securities online conveniently with very low brokerage.


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