One of the prerequisites to starting to invest or trade in the stock market is opening a trading account. It is an account that facilitates buying and selling of various instruments. If you want to trade in shares and futures and options, then you need to open an equity trading account. On the other hand, if you wish to trade in commodities like gold, silver, and crude oil, then you need to get a commodity trading account.

Irrespective of the type of financial asset you trade in and the broker you choose, there is a specific process to follow for opening a trading account in India. While the primary step involves choosing a reliable broking firm, the most important step is document submission. Many find this process a tedious task and are intimidated by it.

If you too are wondering about what documents are required to open a trading account, then you’re at the right place. Find out everything you need to know about it in this blog.

Who can Open a Trading Account in India?

Before looking at the documents, let us glance at the below-mentioned eligibility criteria for opening a trading account.

• An individual who is a resident of India
• The person must be at least 18 years old

If an individual is a minor, that is below 18 years of age, then the account can be operated by a parent/guardian until the beneficiary turns 18. You can also open a trading account in the name of a HUF, firm, trust, etc. Let us look at it from the perspective of an individual.

5 Types of Documents Required to Open Trading Account

All the necessary documents for opening a trading account can be classified into 5 categories.

• Document for Identity Proof,
• Document for Address Proof,
• Document for Income Proof,
• Document for Bank Account Proof, and
• Other Mandatory Documents.

List of Documents Required for Opening Trading Account

Here is a list of category-wise documents that can be submitted to the broker to open your trading account.

• Identity Proof

As proof of your identity, you are required to submit a copy of a document that contains your photograph. You can submit any of the following documents as proof of identity.

• PAN Card, or
• UIDAI’s Aadhaar Card, or
• Passport, or
• Election Card/Voter ID Card, or
• Driver’s Licence issued by RTO, or
• Any other ID Card issued by the State or Central Government.

• Address Proof

The next document you require should provide proof of your residential or correspondence address where the documents can be sent via post. You can submit any of the following documents with your full address as valid proof.

• Passport, or
• UIDAI’s Aadhaar Card, or
• Election Card/Voter ID Card, or
• Ration Card, or
• Driver’s Licence issued by RTO, or
• Copy of Bank Statement or Passbook, or
• Electricity Bill, or
• Gas Bill.

• Income Proof

To trade in the derivatives segment, you need to prove that you have a regular source of income and can handle the risk. For the same, you can provide any of the following documents as proof of your income.

• A copy of Form 16 from your employer, or
• A copy of your Salary Slip, or
• A copy of your most recent Income Tax Return, or
• Previous 6 months’ Bank Statement, or
• A copy of annual income duly certified by a Chartered Accountant, or
• Certificate of Net Worth from a Chartered Accountant, or
• Holding Statement of your Investments (if any).

• Bank Account Proof

Since your trading account is linked with the bank account, a document in this regard is submitted to ensure that the account is valid and active. You can submit any of the following two documents for this.

• Copy of Bank Passbook with IFSC or
• A Cancelled Cheque

• Other Mandatory Documents

Irrespective of the documents you submit as proof of identity, address, income, and bank account, the following two remain mandatory.

• PAN Card, and
• Recent Passport-size Photograph.

Documents Required to Open Trading Account of a Minor

A trading account can be opened in the minor’s name provided it is operated by the guardian or parent until the minor turns 18 years old. In such a case, the following are the documents required for the trading account.

• Minor’s PAN Card
• Minor’s Birth Certificate
• Parent’s or Guardian’s PAN Card
• Proof of Minor’s Bank Account
• Proof of Parent’s or Guardian’s Address

Important Points to Note

• If you are submitting the documents offline, then they are required to be attested by a notary public or gazetted officer or a manager of a bank.
• In case of online submission, self-attestation by way of aadhaar-based eKYC is required.
• Certain individuals like official liquidators, court receivers, residents of Sikkim, and a person with an annual SIP of up to ₹50,000 are exempted from PAN requirements.

The Bottom Line

Submitting the aforementioned list of documents is mandatory for opening a trading account in India. However, by choosing Ashika Group’s Dhanush platform, you can seamlessly submit all the documents online and complete the paperless process of account opening in just 15 minutes.

Moreover, you can make the most of its top-notch trading platform by trading in equity, F&O, mutual funds, IPO, and much more. Experience the genius of the Dhanush trading platform with zero opening charges. Click to learn more.