Procedure for opening a Trading Account
Step 1: There are many stock broking companies. Do your research and select the
best stock broker
to suit your needs. First, compare charges, supported asset classes, user
interface, security, and
other features of multiple brokers and then decide the one that meets your
needs.
Step 2: After choosing a stock broker, get in touch with the firm and enquire
about the trading
account opening procedure.
Step 3: Next, fill out the trading account opening form and furnish the required
documents like proof
of identity, proof of residence, and proof of income. You can use the Aadhar
card or passport as
proof of residence and a copy of your Aadhar card or PAN card as identity proof.
Note that the PAN
card is compulsory for opening a trading account.
Step 4: After submitting the documents, the brokerage will do a KYC verification
by sending a
representative to your house, or you will have to do online verification.
You can also opt for the e-KYC process if you don’t wish to do it online. Note
that for the e-KYC
process, your PAN should be linked to the Aadhar and your bank account. Also,
your mobile number
should be the same as the Aadhar card.
Step 5: After verification, you will be given your trading account details.
After the verification
process, it usually takes 3-4 days to activate the trading account.
Documents Required to Open a Trading Account
1. Proof of identity: For this, you can submit a passport, voting ID, driving
license or Aadhar
card.
2. Proof of address: For this, you can furnish documents like telephone bill,
water bill, and
electricity bill.
3. PAN: This is compulsory for opening a trading account.
e-KYC to Open a Share Trading Account
If you do not want to submit physical documents, you can opt for the alternative
method –
e-KYC process. For the e-KYC method, you will have to ensure that your Aadhar
card ID is linked to
your PAN card and your bank account. The mobile number linked to Aadhar card
should be the
same as the mobile number submitted in the trading account application. The
Aadhar verification is
done online through a one-time password. You will also have to upload a copy of
the PAN card and a
cancelled cheque. After submitting the documents, you will have to verify
yourself through video
conferencing or visit the office of the broker.