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What Is a Demat Account? How It Works, Charges & How to Open One

A demat account holds your shares electronically with CDSL or NSDL. Here is what it costs, how it differs from a trading account, and how to open one.

By LetsInvest Research Desk · Updated 13 Sept 2026

A demat (dematerialised) account holds your shares, ETFs, bonds and mutual-fund units in electronic form with one of India's two depositories — CDSL or NSDL — accessed through your broker (the Depository Participant). You cannot buy delivery shares in India without one.

Demat vs trading account

  • Trading account: where you place buy/sell orders.
  • Demat account: where delivery shares settle (T+1) and sit until you sell.
  • Intraday trades never touch the demat — only delivery does.

Most brokers open both together; see our trading account and demat definitions.

What a demat costs

  • Opening: ₹0 at most discount brokers.
  • AMC: typically ₹0–₹300/year; some brokers waive the first year.
  • DP charge: ~₹15–20 per scrip when delivery shares leave the demat on a sell.

How to open one

Read how to open a demat account for the document list, e-KYC flow, and what to check before you sign up — then compare brokers on pricing, platforms and support.

Educational content, not financial advice.

Affiliate disclosure: LetsInvest earns a commission if you open an account via links on this page — at no extra cost to you. Rankings are editorial and never sold. Read how we make money and our methodology.

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