The following are few important points to be considered while opening the demat and trading account -

1) First and foremost is to talk to multiple brokers and banks and get the features
    and benefits they are offering for opening the demat and trading account with
    them.

2) Once you have short listed some brokers then you can ask them to provide the
    demonstration of their trading and demat account like how to place orders,
    checking the balance amount, pending orders, shares in demat account and so
    on.

3) Importantly try to get low brokerage rates and get information about all
    charges involved for opening the demat account.
• Certificate of identity signed by a MP, MLA, municipal councilor or a gazette officer In case the PAN applicant is a minor, any of these documents of any one of the parents or guardian serves as proof of identity.

• In case a PAN application is made on behalf of a HUF, any of these documents in respect of the Karta of the HUF will serve as proof of identity.

• Documents for address proof The documents that will serve as proof of address in case of individual applicants, including minors and HUF:
Copy of power or telephone bill
Depository account
Credit card or bank account
Ration card, passport or voter identity card
Property tax assessment order
Driving license or rent receipt
Certificate of address signed by a MP, MLA, municipal councilor or a gazette officer
Employers certificate According to Section 160 of the Income Tax Act, a non-resident or minor may be represented by a 'representative assesses'.

• In such cases, the application for PAN should be made by the 'representative assesses'.

• In case the applicant cannot sign, the left hand thumb impression should be affixed on Form 49A at the place meant for the signature, and this should be attested by a magistrate, notary public or gazette officer, under official seal and stamp.
A permanent account number (PAN) is a ten-digit alphanumeric number, issued in the form of a laminated card, by an assessing officer of the Income Tax Department.

• It is mandatory to quote PAN on returns of income, all correspondence with any income tax authority and challans for any payments due to the Income Tax Department.

• It is also compulsory to quote PAN in all documents pertaining to economic or financial transactions notified from time-to-time by the Central Board of Direct Taxes (CBDT).

• These transactions include sale and purchase of immovable property and motor vehicle, certain payments to hotels, certain payments in cash, time deposits exceeding Rs 50,000 with a bank or post office, deposit of cash of Rs 50,000 or more in a bank etc.

• It is compulsory to quote PAN in returns of income. All existing assesses taxpayers or persons who are required to furnish a return of income, even on behalf of others, must obtain PAN.

• Any person, who intends to enter into economic or financial transactions where quoting PAN is mandatory, must also obtain PAN.

• An assessing officer may allot PAN to any person either on his own or on a specific request from such a person One person can obtain and use only one PAN. Obtaining or possessing more than one PAN is against the law.

• Some are not required to obtain or quote PAN. Those having only agricultural income and no taxable income need not have a PAN. They should file a declaration (Form 61) in respect of transactions where quoting of PAN is mandatory. Non-residents need not have a PAN.

• In order to improve PAN related services, the Income Tax Department has authorized UTI Technology Services Ltd (UTITSL) and NSDL to set up and manage PAN Service Centers in all cities or towns where there is an Income Tax office.

• Location of PAN Service Centers in any city may be obtained from the local Income Tax Office.

• PAN Service Centers supply new PAN application forms (Form 49A), assist the applicant in filling up the form, collect filled forms and issue acknowledgement slips.

• After obtaining PAN from the Income Tax Department, they will print the PAN card and deliver it to the applicant. Nominal service charges are payable to the PAN Service Centers.
• A PAN application can be made only on the new Form 49A. These documents and information have to be submitted along with an application:
1. Individual applicants will have to affix one recent, colored photograph (stamp Size) on Form 49A.
2. Any one document listed in Rule 114 must be supplied as proof of identity and address
3. Designation and code of the assessing officer concerned of the Income Tax Department Documents for identity proof The documents that will serve as proof of identity in case of individual applicants, including minors and HUF:
Copy of school leaving certificate, matriculation certificate, or degree certificate from a recognized educational institution
Depository account
Credit card or bank account
Ration card or property tax assessment order
Passport or voter identity card
Driving license
Points to remember while opening the Demat account
5) Documents required to open Demat account and Trading account -
a) Address proof - Any one document from the following will do. Ratio card, Passport, Voter ID, Driving license, Bank Pass Book,
    Electricity Bill (not more then two months old), Telephone bill (not more then two months old).
b) Bank Cheque ( amount to be deposited in your trading account)
c) One Photograph
d) A PAN card is mandatory.
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About Permanent Account number - PAN(PAN)
4) Don’t fall victim for free accounts, look for reliable service and benefits before
    opting for free accounts.
5) Some brokers are offering flat brokerage rate and also brokerage rates for unlimited investing and trading. You can also talk to
    such brokers.