India Markets
Demat Account
Everything you need to know about opening and managing a Demat account to invest in Indian markets.
A Demat (Dematerialised) account holds shares and securities in electronic form — eliminating the need for physical share certificates. It is mandatory for trading on Indian stock exchanges. Linked to a trading account and a bank account, the Demat-Trading-Bank trinity is what every Indian investor needs to participate in equity markets.
Demat vs Trading vs Bank Account
Three accounts work together seamlessly once linked. Understanding each one's role prevents confusion.
- Demat account: Holds your shares electronically (with NSDL or CDSL depository)
- Trading account: Interface for placing buy/sell orders on exchanges (with your broker)
- Bank account: Source and destination of funds for all transactions
- When you buy shares: Money debits from bank → shares credit to Demat (T+1)
- When you sell shares: Shares debit from Demat → money credits to bank (T+1)
How to Open a Demat Account
Opening a Demat account is fully online and takes 15–30 minutes with the right documents ready.
- Step 1: Choose a broker — Zerodha (₹200/order flat), Groww, Upstox, Angel One
- Step 2: Documents needed — PAN card, Aadhaar (for e-KYC), bank account, signature
- Step 3: Complete e-KYC via Aadhaar OTP (instant) or in-person verification
- Step 4: IPV (In-Person Verification) — video call or webcam selfie
- Step 5: Account active within 24-48 hours; fund it to start trading
Charges to Know
Every broker has a slightly different fee structure. Understanding charges prevents surprise deductions.
| Charge | Zerodha | Groww | Upstox |
|---|---|---|---|
| Account opening | ₹200 | Free | Free |
| Annual maintenance (AMC) | ₹300/yr | ₹0 (for now) | ₹150/yr |
| Equity delivery brokerage | ₹0 | ₹0 | ₹0 |
| Intraday brokerage | ₹20 or 0.03% | ₹20 or 0.05% | ₹20 or 0.05% |
| F&O brokerage | ₹20/order | ₹20/order | ₹20/order |
💡 Pro Tip: Enable DDPI (Demat Debit and Pledge Instruction) or maintain a Power of Attorney with your broker to enable seamless selling of shares from your Demat account without additional confirmation steps for each transaction.
Key Takeaways
- ✓A Demat account is mandatory for investing in Indian stocks, ETFs, and bonds
- ✓Choose a discount broker (Zerodha, Groww, Upstox) — lower costs than full-service banks
- ✓Delivery trades are free at most discount brokers — only intraday and F&O have brokerage
- ✓Shares are held with NSDL or CDSL depository — not with your broker (so broker bankruptcy is not a risk to your shares)
- ✓Link Aadhaar for instant e-KYC — it makes account opening a 15-minute process
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