What a demat account is
A demat (dematerialised) account holds your shares, ETFs, bonds, government securities and, if you choose, mutual fund units in electronic form, much as a bank account holds money. It is opened with a depository participant (DP), usually a stockbroker or bank, and maintained by one of India's two depositories, NSDL or CDSL.
A trading account is the other half. It is how you place orders on the stock exchange. Most people open both together with the same provider.
How account opening works in India
For resident individuals, the process is now largely paperless:
- Enter your PAN and verify your mobile number and email by OTP.
- Complete Aadhaar-based e-KYC. Your KYC is also recorded with a KYC Registration Agency (KRA), so other market intermediaries can rely on it later.
- Upload a bank proof, photograph and signature.
- Complete in-person verification over a short video call.
- Add nominees, choose the segments you need and e-sign the documents.
Once the checks are done, you receive a client code for trading and a 16-character demat account number (the BO ID).
Account types at a glance
| Account type | Who it's for | Point to note |
|---|---|---|
| Individual / joint | Residents, up to three holders | Holder order matters for later transfers |
| Minor | Children | Operated by a parent or guardian |
| HUF | Hindu Undivided Families | Held in the HUF's name, operated by the Karta |
| NRI (NRE / NRO) | Non-residents | Repatriable and non-repatriable holdings kept separate |
| Corporate / trust / LLP | Entities | Board or trustee resolution needed |
If you are converting old share certificates, the demat account must be in exactly the same names, in the same order, as on the certificates.
Things to compare before you choose
- Total yearly cost: annual charges, DP debit charges and brokerage together, based on how often you will trade
- Platform: mobile and web apps, order types, and access to IPOs, bonds and government securities
- Service: how quickly modifications, closures and transfers are handled
- Pledge rules, if you plan to use holdings as collateral for margin or a loan
- Whether a BSDA fits: worth considering if your holdings are modest and you trade rarely
Our team handles the forms, checks your details before submission so applications are not rejected, and supports you with changes after the account is open.
