What is a Demat Account?
A Demat (Dematerialised) account is a digital account that holds your shares, mutual funds, ETFs, and bonds in electronic form. Just like a bank account holds your money, a Demat account holds your securities. In India, you cannot buy or sell shares on the stock exchange without one.
Along with a Demat account, you also get a Trading account — this is used to place buy/sell orders. Most brokers open both together automatically.
💡 Quick fact: As of 2026, India has over 15 crore Demat account holders — and the number grows by 30–40 lakh every month.
Documents Required
Opening a Demat account in India is fully online (paperless). Here's what you need:
- PAN Card — mandatory for all investments in India
- Aadhaar Card — for KYC verification via OTP
- Bank account details — cancelled cheque or passbook photo
- Signature — on white paper (for upload)
- Selfie / Photo — taken live on your phone during signup
That's it. No physical documents, no branch visits required.
Which Broker Should You Choose?
There are three main discount brokers in India that are trusted by crores of investors:
| Broker | Account Opening | Brokerage (F&O) | Best For |
|---|---|---|---|
| Zerodha | ₹200 (one-time) | ₹20 per order | Experienced investors, traders |
| Groww | Free | ₹20 per order | Beginners, mutual fund investors |
| Angel One | Free | ₹20 or 0.25% | All-round platform, research tools |
For beginners, Groww is the simplest to use. For serious stock investors, Zerodha (Kite) offers the best platform. Angel One is a good middle ground with research and advisory features.
Step-by-Step: How to Open a Demat Account
The entire process takes 10–20 minutes online. Here's how:
Visit the broker's website or app
Go to Zerodha, Groww, or Angel One and click "Open Account" or "Sign Up".
Enter your mobile number and email
You'll receive an OTP to verify your identity. Use the number linked to your Aadhaar.
Enter your PAN and basic details
Name, date of birth, and PAN number. The broker verifies it against the Income Tax database instantly.
Complete Aadhaar-based e-KYC
Enter your Aadhaar number and verify via OTP sent to your Aadhaar-linked mobile. This completes the KYC requirement.
Upload bank details and sign
Upload a photo of your cancelled cheque. Sign on white paper, take a photo, and upload it.
Take a selfie and e-sign
Take a live photo for verification. Then e-sign the account opening form via Aadhaar OTP or DigiLocker.
Account activation
Your account is typically activated within 24–48 hours. You'll receive login credentials via email/SMS.
Ready to open your account?
Open a free Demat account with India's most trusted brokers. Takes under 15 minutes.
Annual Maintenance Charges (AMC)
After account opening, brokers charge an Annual Maintenance Charge (AMC) to maintain your Demat account:
- Zerodha: ₹300/year
- Groww: ₹0 for the first year, then ₹400/year
- Angel One: Free for first year, then ₹240/year
Can I Have Multiple Demat Accounts?
Yes! There is no restriction on the number of Demat accounts in India. Many investors maintain accounts with two brokers — one for long-term investing (like Zerodha) and another for mutual funds (like Groww). However, each account has its own AMC, so keep that in mind.
What Can You Buy with a Demat Account?
Once your account is active, you can invest in:
- Stocks listed on NSE and BSE
- ETFs (Exchange Traded Funds)
- IPOs (Initial Public Offerings)
- Mutual Funds (direct plans)
- Government Bonds and SGBs
- REITs and InvITs
- Futures & Options (F&O) — for advanced traders
Key Things to Remember
- Always link your bank account properly — this is how funds are debited (for buying) and credited (for selling)
- Keep your nominee updated in your Demat account settings
- Enable 2FA (two-factor authentication) for security
- Do not share your login credentials or OTPs with anyone
- Your Demat account is with CDSL or NSDL (the depositories) — your broker is just the interface