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.
Where your shares actually sit
You hold nothing directly. Delivery holdings sit as electronic entries with one of India's two depositories, and your broker — the Depository Participant — is the only door to them.
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This is the guide's own opening mechanism, drawn: no holdings, fees or percentages appear in it, so there is nothing here to go stale.
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.
Trading account
The account where you place buy and sell orders. It is linked to your bank and to your demat account, and it is where the money moves.
Your intraday trades never touch the demat at all — they settle within the day.
Demat account
The electronic holding where delivery shares are settled (T+1) and stay until you sell them. Operated by a depositary — CDSL or NSDL — and accessed through your broker as the Depository Participant.
ETFs, bonds and dematerialised mutual-fund units sit here too.
| Charge | Typical amount | When it applies |
|---|---|---|
| Account opening | ₹0 at most discount brokers | Once |
| AMC (demat maintenance) | ₹0–₹300 a year | Every year, debited from the demat |
| DP charge | About ₹15–₹20 per scrip | On a delivery sell, when shares leave the demat |
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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.