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Demat Accounts

What Is a Demat Account? Meaning, Types and Charges

A demat account holds your shares and securities electronically. Learn how it works, the types available, BSDA, and the charges to expect.

Researched and written by the BestStockBrokerIndia Editorial Team Reviewed by the BestStockBrokerIndia Editorial TeamPublished Updated How we research
Demat AMC over 5 yearsCumulative charge, GST included where applicable.Groww₹0HDFC SKY₹960Angel One₹1,132.80Zerodha₹1,416Upstox₹1,4165paisa₹1,416Sharekhan₹1,600ICICI Direct₹3,500Kotak Securities₹3,540Motilal Oswalnot verifiedSource: each broker's published tariff (see the fee tables).

Meaning

A demat (dematerialised) account holds shares, ETFs, bonds, government securities and mutual fund units in electronic form. In India, securities are held at one of two depositories — NSDL or CDSL — and you access them through a depository participant (DP), which is usually your stock broker or bank.

Since 1 April 2019, SEBI requires shares of listed companies to be held in demat form to be transferred, so a demat account is essential for investing in shares.

How it works with a trading account

Your trading account is used to place buy and sell orders on the exchange. Your demat account is where the shares are stored. When you buy, shares arrive in the demat account on T+1; when you sell, they are debited. Read trading account vs demat account.

Types of demat account

Type For
Regular Resident Indian individuals
BSDA (Basic Services Demat Account) Individuals with a single demat account and small holdings; reduced or nil AMC
Repatriable (NRE-linked) NRIs who want to repatriate funds
Non-repatriable (NRO-linked) NRIs investing from Indian income
Minor Minors, operated by a guardian

See what is a BSDA account for the thresholds.

Charges

  • Account opening – ₹0 at many brokers.
  • Annual maintenance charge (AMC) – varies from ₹0 to several hundred rupees plus GST a year.
  • DP charge – when you sell shares. Depending on the broker it is charged once per stock per day or for every sell order.
  • Pledge, off-market transfer, physical statement – varies.

Compare them in the demat account charges table.

Safety

Securities in your demat account are held in your name at the depository, separate from the broker's own assets. Monitor your holdings through the consolidated account statement (CAS) sent by NSDL/CDSL and the depository's own app/portal.

Frequently asked questions

Is a demat account free?

Opening is free at many brokers, but you usually pay an annual maintenance charge and a DP charge when you sell. Some brokers charge ₹0 AMC; BSDA holders with small holdings pay nil or reduced AMC.

Can I open a demat account without a trading account?

Yes, you can open a demat-only account with a DP, but you need a trading account to buy or sell on the exchange.

What is the difference between NSDL and CDSL?

Both are SEBI-registered depositories. For an investor, the choice makes little practical difference; it is decided by the DP you open your account with.

Sources

  1. NSDL – Demat account FAQs — accessed 30 September 2026
  2. CDSL – About demat accounts — accessed 30 September 2026
  3. CDSL communiqué on SEBI's revised BSDA framework — accessed 30 September 2026
  4. SEBI Investor website — accessed 30 September 2026