Investing Basics
How to open a demat account in India
Updated: October 2026 · Baasava Hathiwala
A demat account holds your shares and securities electronically — think of it as a bank account for your investments. If you want to invest in stocks or ETFs in India, you need one. Here is what it is, and exactly how to open one.
Demat vs trading account
These two work as a pair. The demat account stores your securities; the trading account is what you use to buy and sell on the exchange. When you buy, shares settle into your demat; when you sell, they move out. Most brokers open both together.
What you'll need
- PAN card (mandatory)
- Proof of identity & address — Aadhaar is commonly used
- Bank account to link for funds
- Photograph and signature
- Income proof — for certain trading segments (e.g. derivatives)
The step-by-step process
- Choose a depository participant (DP) / broker. This is a SEBI-registered broker that opens your account with a depository (NSDL or CDSL).
- Fill the online application and complete e-KYC using PAN and Aadhaar.
- Upload your documents — identity, address, bank and signature.
- Complete in-person verification (IPV) — usually a short video or digital step.
- Receive your credentials and start investing.
With online e-KYC the whole thing is often done within a day or two.
How to choose a broker
- Costs: account opening, annual maintenance (AMC), brokerage per trade, and any platform fees.
- What you'll trade: stocks only, or also ETFs, F&O, IPOs, bonds.
- Platform & support: app usability, reliability, and customer service quality.
- Regulation: always use a SEBI-registered broker and verify its credentials.
We don't rank specific brokers or earn broker commissions — compare costs and features on each broker's official site, and check the SEBI register before opening an account.
Do you even need one?
For regular mutual funds, you don't need a demat account — you can invest through the fund house, an RTA or a platform (see how to start investing in mutual funds). You need a demat account for stocks, ETFs, and if you choose to hold mutual fund units in demat form.
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Frequently asked questions
What is a demat account?
A demat (dematerialised) account holds your shares and securities in electronic form, the way a bank account holds money. In India it is maintained through a depository (NSDL or CDSL) via a depository participant (your broker). You need one to hold stocks, ETFs and many other securities.
What is the difference between a demat and a trading account?
A demat account stores your securities; a trading account is used to place buy and sell orders on the exchange. They work together — you trade through the trading account and the shares settle into your demat account. Most brokers open both together.
What documents do I need to open a demat account?
Typically your PAN card, proof of identity and address (Aadhaar is commonly used), a bank account for linking, a photograph and signature, and for trading in certain segments, income proof. Most brokers now complete the whole process online with e-KYC.
Do I need a demat account for mutual funds?
Not necessarily. You can hold regular mutual fund units without a demat account, through the fund house, an RTA or a platform. A demat account is required for stocks, ETFs and when you specifically choose to hold mutual fund units in demat form.
How long does it take to open a demat account?
With online e-KYC, a demat account can often be opened within a day or two, sometimes faster. The exact time depends on the broker and how quickly your documents are verified.
For education only — not investment advice or a broker recommendation. Use SEBI-registered intermediaries and verify details independently. Investments are subject to market risks. See our disclaimer.